A Case Study On The Management Of Impairment Surpluses In Jinling Mining Assets

In recent years,with the continuous development of China’s capital market,the problem of enterprise surplus management has emerged in an endless stream,which has also become a hot research topic in the field of accounting and caused extensive discussion in society.On the other hand,there are still defects in China’s asset impairment theory,and the standard has fewer constraints on the provision and reversal of asset impairment,which makes asset impairment have the characteristics of high flexibility and strong subjectivity,and has become one of the commonly used surplus management methods for enterprises.The use of asset impairment by enterprises to manage surpluses damages the quality of accounting information,affects external investors to make correct decisions,and seriously interferes with the healthy and stable development of China’s economy.Therefore,taking Jinling Mining as an example,this paper explores the whole process of asset impairment surplus management of the company through case analysis.In the specific analysis process,this paper adopts the case analysis method and the normative research method.On the basis of a large number of research literature related to asset impairment and surplus management,combined with the industry background and the company’s operating conditions of Jinling Mining,the rationality of asset impairment behavior and the impact of asset impairment on the company’s surplus are analyzed from different aspects,which are specifically divided into three aspects: total asset impairment,short-term asset impairment provision and long-term asset impairment provision,and short-term asset impairment provision includes the analysis of inventory price decline provision and bad debt provision.Jinling Mining has used improper asset impairment to manipulate corporate surpluses for the purpose of avoiding desisting,beautifying operating performance,changing management and obtaining government subsidies.Excessive surplus management is mainly carried out by means of "taking a big bath" in the year of loss,using changes in accounting estimates to reduce the amount of impairment,and illegally returning to the impairment provision for works under construction.Jinling Mining’s surplus management behavior reflects that there are still problems in China’s asset impairment and surplus management such as the csrc’s weak supervision,defective asset impairment standards,weak audit supervision,imperfect internal control system,and low moral level of accounting personnel.Based on this,this paper puts forward targeted suggestions from four perspectives.First,the standard should gradually improve the specific quantitative standards for asset impairment provisions;second,the CSRC needs to enrich the evaluation indicators of listed companies;third,companies should strengthen internal governance and improve the implementation of internal control systems;and finally,strengthen external supervision and give full play to the functions of external auditing and supervision from all walks of life.