Case Study On Non-Recurrent Profit And Loss Earnings Management Of Machine Tools In Shenyang

Non-recurring profit and loss earnings management refers to the purpose of pursuing specific interests by intentionally using non-recurring gains and losses to adjust financial reporting data and information within the scope permitted by accounting standards.Non-recurrent profit and loss earnings management damages the authenticity and fairness of accounting information to a certain extent,misleads the judgment of information users,leads to their decision-making errors,and ultimately reduces the efficiency of capital market.Because of the management regulations and supervision requirements of the securities market in our country,it is difficult and costly for companies to go public,which leads to the valuable listed resources in our country.At the same time,the supervision department of our country implements the management regulations that listed companies enter the special treatment period for losses for two consecutive years and suspend the listing of loss stocks for three consecutive years.Under the policy environment that both listing and delisting of stocks are not fully market-oriented,it is easy for companies to carry out non-recurring profit and loss earnings management in order to preserve listed shell resources during the period of special treatment.This paper reviews previous scholars' research on non-recurring profit and loss earnings management,and combines with the basic theories of non-recurring earnings management: principal-agent theory,information asymmetry theory and efficient market theory,chooses Shenyang Machine Tool as a case study to discuss the non-recurring profit and loss earnings management of listed companies.Means,motivations and results,put forward countermeasures to prevent non-recurring profit and loss earnings management.Through the analysis of Shenyang Machine Tool's earnings management cases using non-recurrent gains and losses,this paper combines the relevant theoretical cases at home and abroad,and obtains the economic consequences of non-recurrent gains and losses earnings management.Through reading a large number of domestic and foreign literature,and using the method of induction and summary,the main points of case study are sorted out,and the analysis framework of this paper is constructed.In this paper,through five chapters,the case is analyzed in depth.The first chapter is the introduction,which briefly introduces the background and significance of the study,and combs the research on non-recurrent profit and loss earnings management at home and abroad.Based on the existing theory,this paper collates the research ideas and writing framework.The second chapter introduces the theory of non-recurring profit and loss earnings management,and summarizes the motivation and means of non-recurring profit and loss earnings management.The third chapter is the introduction of the case,which introduces the background and process of the case of non-recurrent profit and loss of Shenyang machine tools.Chapter 4 is a case study.It analyses the means and motivation of non-recurrent profit and loss earnings management of Shenyang machine tools.The means of non-recurrent profit and loss earnings management of Shenyang machine tools include selling loss subsidiaries to related parties,reaching debt restructuring agreements with suppliers,accepting large subsidies from local governments,etc.The motivation for Shenyang Machine Tool to implement non-recurring profit and loss earnings management includes that the company urgently needs to turn losses into profits in the short term,and to maintain the company's listed status and financing channels;at the same time,it needs to get rid of loss assets to prepare for the comprehensive reform of state-owned enterprises.Chapter 5 summarizes the behavior and results of non-recurring profit and loss earnings management of machine tools in Shenyang,and draws inspiration from non-recurring profit and loss management of enterprises.On the basis of combing the relevant theories of non-recurring profit and loss earnings management,this paper uses the method of case analysis to analyze the case of Shenyang Machine Tool in 2017 using non-recurring profit and loss to carry out earnings management.After comparative analysis and trend analysis of case data,this paper draws the following conclusions: in order to maintain the listed status,enterprises choose to carry out earnings management in a short period of time under the existing delisting system of China's stock market,and the ways of non-recurrent earnings management include selling subsidiary shares,restructuring debts,and obtaining large government subsidies;Constant profit and loss earnings management can make a lot of profits in the short run and reverse the loss;although it can make the enterprise get out of the loss predicament in the short run and lightly load into battle;but in the long run,whether the business situation of the enterprise can be improved still needs to further strengthen the internal governance ability of the enterprise;and the use of non-recurrent gains and losses to whitewash the report data will mislead investors to a certain extent,the relevant departments.Doors should do a good job of supervision.