Research On Earnings Management From The Perspective Of Investment Property

With the advancement of urbanization,the investment function of real estate has gradually emerged.As an investment strategy,more and more listed companies in China have begun to hold real estate.In order to improve the quality of accounting information and achieve international convergence of accounting standards,China's Ministry of Finance promulgated the "Enterprise Accounting Standards No.3-Investment Property." in 2006 to reflect the asset form of China's corporate investment property,and enterprises can choose the cost model or fair value model to measure the property.With the continuous application of fair value,the Ministry of Finance promulgated the “Enterprise Accounting Standards No.39 – Fair Value Measurement” in 2014,giving reference and guidance to the application of the fair value model.Since the promulgation of the Standards,it has been a long time,and there has been a phenomenon in which listed companies use investment property for earnings management.Macalline is a listed company specializing in home decoration and home shopping malls.With the continuous expansion of the company's scale,its investment property has grown by spurt.This paper firstly cuts into the current situation of investment property accounting measurement and disclosure of listed companies in China,and then analyzes Macalline's business model and earnings management motives.Finally,it focuses on the three earnings management behaviors of Macalline.The purpose of this paper is to reveal the phenomenon of investment property earnings management in listed companies through case studies,find the space of earnings management in criteria and supervision,and propose policy recommendations.The main contributions of this paper are as follows: 1.There are few literatures on the study of earnings management from this perspective.This paper supplements the existing research on earnings management;2.Find the existence of vulnerabilities in the current investment property standards,fair value standards and supervision,and propose suggestions for improvement;3.Provide ideas for financial statement users to identify investment property earnings management;4.Provide experience for fair value promotion in future.