Discussion On Non-recurring Gain And Loss Earnings Management Of ~*ST ZHONGPU

There are various problems in the development of China's capital market,the earnings management of listed companies is one of the most common problems.There are also many types of earnings management.This paper mainly discusses earnings management by increasing non-recurring gain and loss.Non-recurring gain and loss is literally infrequent.The CSRC has also documents explaining what it meant.Many scholars have also studied and analyzed its concept.In conclusion,non-recurring gain and loss is not related to the main business of the enterprise.It just happens occasionally at some point and doesn't happen steadily,and this item has an important impact on the profits of the enterprise,therefore,the users of the annual report will determine the business situation inaccurately.A situation in which many listed companies have difficulty operating due to various factors,it makes the company unable to profit from major business activities.Since the profitability of the main business can't be greatly improved in a relatively short period of time,companies will seek other channels to make the net profit positive.The income that the company obtains in the main business is the current gain and loss,and the current gain and loss in the company is very little,even may be a relatively large loss.Companies can only use the non-recurring gain and loss,and this part of income is easy to get quickly and is used by most companies.The most important of these is to deal with the illiquid assets,as well as the income from all kinds of investments and government's unpaid subsidies to companies,and so on.This behavior exposes many problems in the capital market,such as the shift in the focus of business operations,the lack of focus on the main business,and there is nothing to show in the company.In addition,the listed companies frequently change the information of the report data by increasing the non-recurring gain and loss to show good performance.This is very bad behavior for many investors.Since non-recurring gain and loss has not been reflected in accounting standards,and only the CSRC has proposed related rules,and its legal effect is weak,so listed companies will not pay much attention to it.And the supervision of capital market has not done enough,and the relevant rules for delisting are not strict enough,so it will leave many companies with big business crises with a chance to escape forced exit.This paper mainly makes a deeper inquiry into the earnings management behavior of ~*ST ZHONGPU.~*ST ZHONG is a relatively unusual listed company in the capital market,because the company has survived its main business for more than a decade without profit.It is found that during this period the company increased non-recurring gain and loss by selling all kinds of assets and equity,which makes the net profit change from negative to positive.Through the description of this phenomenon,the paper explores the specific ways of increasing the non-recurring gain and loss,the motivations behind it and the reasons for choosing this item,so as to reveal the various defects in the capital market so that the supervision can be more targeted and supervised.For the better analysis of the earnings management behavior of ~*ST ZHONGPU,this paper first expounds the research background and significance,the research methods used and the research ideas of the case,and then describes the relevant theoretical knowledge of non-recurring gain and loss and earnings management,including three theories,which all lay the theoretical foundation for the case analysis;the following is an introduction to the earnings management of ~*ST ZHONGPU,a brief description of the company's basic operating and financial situation,and a description of the motivations and specific ways used in the company's earnings management,which mainly include the income from the disposal of assets,the disposal of subsidiaries and the investment income from the available for sale of financial assets,the sale of branches to obtain other non-operating income,and the acquisition of government subsidies,and through the purchase of bank financial products;then describes the economic consequences of ~*ST ZHONGPU after making these behaviors,the reasons why the company choose using the method of increasing the non-recurring gain and loss to carry out earnings management,and further analyze the reasons why the company can use the non-recurring gain and loss to increase the company's income;finally,put forward targeted suggestions on the related problems exposed by ~*ST ZHONGPU's such behavior: first,the non-recurring gain and loss needs to be reflected in the accounting standards as soon as possible in order to perfect the relevant accounting system;second,we should further standardize corporate governance,enhance the supervision awareness of relevant departments within the company and formulate effective mechanisms;third,strengthen the supervision of listed enterprises by external audit institutions;fourth,improve the supervision system of the capital market.