| With the continuous convergence between Chinese accounting standards and international accounting standards,the promulgation of CAS 18 in 2007 officially opened a new chapter in Chinese income tax accounting.The introduction of deferred income tax accounting concept,the change of income tax accounting method to balance sheet debt,and the subjective condition of deferred income tax asset recognition all provide operating space for the earnings management of the company.Domestic and foreign scholars have paid great attention to the problem of earnings management,but less study based on the perspective of deferred income tax on earnings management,in recent years,the amount of our enterprises confirm deferred tax assets has become more and more,so we need to further explore whether enterprises use deferred income tax assets for earnings management.Based on the case study method,this paper selects baofeng group,which has confirmed a large number of deferred income tax assets in the Internet video industry in the past two years,for in-depth study.This paper first reviews the relevant studies at home and abroad.Then,the paper introduces the relevant theoretical basis.Then,based on the detailed description of the case of baofeng group,the financial situation and accounting behavior of baofeng group is analyzed to explore the impact and possible consequences of using deferred income tax assets for earnings management.Finally,we summarize the inspiration brought by the case of baofeng group and put forward relevant suggestions,hoping to enrich relevant cases,provide research direction and ideas from multiple perspectives,and lay a foundation for more in-depth researches.In this paper,through qualitative and quantitative methods of research,concludes that the baofeng group exists through deferred income tax assets for earnings management,in addition,this behavior has an impact on baofeng group’s financial statements and financial indicators,inflats profits,optimizs financial indicators,and has produced certain misdirect to investors.Through the case study of baofeng group,this paper finds that Chinese income tax accounting standards have some defects,the company’s internal control system needs to be improved,and the supervision of the external needs to be strengthened.In response to these problems,this paper also gives relevant suggestions,hoping to control and prevent enterprises from using deferred income tax assets for earnings management in the future,so as to maintain a good market order in China. |
