Case Research On The Earnings Management By Non-recurring Gains And Losses Of Suning.com CO.,LTD

The company's earnings can be divided into non-recurring gains and losses and recurring gains and losses based on earnings persistence.The formation process of nonrecurring gains and losses is generally irrelevant to the company's main business.Recurring gains and losses is the core of a company's earnings,because it is sustainable and closely related to the company's main business.When investors analyze the financial status of the listed companies,they rely heavily on annual financial statements,but the non-recurring gains and losses is often easy to mislead investors in judging the true performance of the company.Without the correct identification and analysis of the impact of non-recurring gains and losses on financial statements,it is difficult to know the true profitability of the enterprise,and to make reasonable investment decisions.This article selects Suning.comCO.,Ltd,referred to Suning.com,as a typical case research.First,This article introduces the basic situation of Suning.com,and analyzes the company's operating conditions through 2014-2018 financial data,including analysis of its annual profit status,non-recurring gains and losses status,and the analysis of the situation after deducting non-recurring gains and losses.Then the article sorts and analyzes important data in annual financial statements,and reads its announcements,analyzing its motivations and methods for using non-recurring gains and losses to adjust profits.Finally,the article analyzes the performance of its earnings management and sorts out the benefits and serious consequences of this series of earnings management operations,and the impact of corporate behavior on its stakeholders.Through the analysis,it was concluded that Suning.com did a lot of behavior of earnings management by non-recurring gains and losses to adjust its profits in 2014-2018.Although non-recurring gains and losses can increase net profit,it has negatively affected the future of the company,its development capacity has not been improved,and the problems in its main business operation have not been improved.Based on this conclusion,the article finally puts forward some suggestions on the formulation of China's securities market system and related accounting standards,and puts forward some views on how investors identify the impact of non-recurring gains and losses,and finally discusses how Suning.com can get out of the predicament.