Research On Earnings Management Of Asset Impairment Of Huarui Wind Power

Because of the imperfection of accounting standards and the subjectivity of asset impairment calculation and return,many enterprises are used as tools of earnings management.The revision of accounting standards in 2006 forbids the reversal of long-term assets impairment,which makes more and more listed companies use current assets impairment to implement earnings management.There are different ways and problems in earnings management of assets impairment,which makes the quality of accounting information decline,easily leads to the misjudgment of stakeholders,and seriously endangers the development of the company itself and the capital market.The environment of the field.The continuous improvement of enterprise accounting standards restricts the behavior of enterprises,but enterprises can still use the grey area of supervision to carry out asset impairment earnings management.Different listed companies have different means of asset impairment earnings management and different problems.Based on this,the research question of this paper is:How do listed companies use impairment of assets to manage earnings?How does impairment affect the relevant items in the balance sheet and profit statement?What are the motivations and means of asset impairment earnings management?How to regulate such earnings management behavior from the internal and external aspects?In view of these problems,this paper reviews the research on asset impairment and earnings management by scholars at home and abroad,and combines with relevant theoretical analysis,chooses Huarui Wind Power Technology(Group)Co.,Ltd.,which is deeply influenced by market environment and industry characteristics,as the research object.This paper mainly uses normative research method and case analysis method,and combines with the financial data of the company from 2013 to 2017.It makes a detailed study on the earnings management behavior found in the disposal of bad debts loss,inventory depreciation loss and long-term assets impairment.It analyses that the two-year net profit is negative and the third-year net profit is negative.The influencing factors of value earnings management.Finally,it comes to the conclusion that in order to reduce the risk of delisting,the company has excessive asset impairment earnings management behavior to achieve the purpose of manipulating profits.There are some problems in the earnings management of the impairment of assets,such as taking the impairment of assets as the main way of earnings management,making a large amount of impairment of assets in the year when the impairment of current assets is in deficit,converting the loss into excessive surplus in the next year,and improper disposal of the impairment of non-current assets.Through the study of case companies,this paper puts forward normative suggestions from the perspectives of improving accounting standards,optimizing the rules system of impairment in various industries,improving internal governance and strengthening external governance.For example,enterprises should constantly optimize the judgment criteria of impairment signs,complete the relevant restraint clauses of asset impairment reversion,and the market should determine the standard of impairment amount and asset impairment based on industry characteristics.Annual intervals,etc.