*ST Shenyang Machine Uses Non-recurring Gains And Losses To Conduct Earnings Management Case Analysis

In China,net profit and loss can be divided into recurring profit and loss and non-recurring profit and loss from the perspective of persistent difference of surplus.The former specifically refers to the normal transactions that often occur.It is the core income of the enterprise and has the characteristics of continuity,while the latter has the characteristics of contingency based on the nature and frequency.Therefore,it cannot represent the real profitability of the enterprise.Since the concept of non-recurring profit and loss and the specification of disclosure were proposed,they have been revised for many times.However,the current relevant system is still not perfect,and problems such as incomplete coverage and the need for professional judgment still exist.Based on this,ST enterprise non-recurring profit and loss earnings management has become a common phenomenon.Carry out a comprehensive analysis of ST enterprise's non-recurring profit and loss earnings management,from the previous causes,consequences,processes and other aspects,can provide investors with more valuable real information,to ensure the effective protection of investors' rights and interests,at the same time,can effectively regulate the non-recurring profit and loss disclosure system.Therefore,this paper chooses *ST Shenyang Machine as a case study to analyze the entire process of its non-recurring profit and loss earnings management.This paper mainly adopts the method of combining normative research with case analysis,and on the premise of reviewing and combing relevant literatures and summarizing theories of non-recurring profit and loss and earnings management,carries out a comprehensive discussion on the earnings management of non-recurring profit and loss implemented by *ST Shenyang Machine.The actual situation,hat-wearing process and financial status of enterprises are comprehensively elaborated,and then the motivation,process and consequences of enterprise earnings management are analyzed layer by layer.The operation carried out by the enterprise reflects that the current domestic accounting standards are not standardized enough,the governance of the enterprise still has loopholes,and the supervision system of the whole market also needs to be further improved.Then it discusses the economic results of the implementation ofearnings management by *ST Shenyang Machine from the two aspects of the success of the company's shell protection and the fluctuation of the company's stock price.Through the above analysis,the purpose of earnings management implemented by *ST Shenyang Machine in 2017 is analyzed.Although the company successfully takes off its hat with the help of this move,it will have a negative impact on the future development of the enterprise,and the essential problem of the enterprise--operation problem has not been improved.In view of this,the paper pointed out the feasibility of optimization strategy: based on the internal,enterprises should standardize the governance,improve development,improve the management ability;Externally,relevant departments should attach importance to the definition of concepts and the improvement of regulatory system.