Zhangzidao Company Makes Use Of Asset Impairment For Earnings Management Research

Agriculture,forestry,fishery and animal husbandry are the basis of China’s national economy.The industry is characterized by long production cycle,extensive inventory distribution,complicated inventory taking process,large cash transaction volume,dispersed trading objects and unstable performance.In recent years,agricultural,forestry and fishery companies have been frequently exposed to financial problems by using a special asset of the industry--consumable biological assets for earnings management to manipulate profits.Although the ministry of finance of China promulgated the accounting standards for business enterprises no.8-asset impairment in 2006,the standards clearly pointed out the recognition,measurement and disclosure standards of asset impairment,making the domestic accounting standards system more perfect,in line with international standards.In the new accounting standards,it is proposed that for special asset items,the recognized asset impairment provision cannot be reversed,but the imperfect accounting standards still leave some room for manipulating earnings management.Therefore,the impact of asset impairment on earnings management has become the focus of many scholars and practitioners.Then to carry out specific analysis on its asset impairment,found roebuck island company asset impairment provision and back problems,and through the chart analysis of the asset impairment provision return and impact on net profit,comparing and selecting data in the same company,and then draw a roebuck island company is mainly the use of consumptive biological asset impairment for earnings management behavior.On the basis of theoretical analysis,this paper combines cases for analysis and research.Firstly,this paper expounds the background and significance of the research,as well as the domestic and foreign scholars’ research on earnings management and asset impairment.Secondly,based on the theoretical basis that listed agricultural companies use asset impairment for earnings management,this paper takes zhangzidao company as the research object for case analysis,selects relevant financial data of zhangzidao from 2010 to2018,and USES the model to verify the earnings management behavior of zhangzidao company.Its purpose is to write off a huge amount of this way,in the loss of the year set aside a large amount of impairment of assets,magnify the loss of the year,release the risk of the previous year,and finally "turn a profit",successfully "take off the hat" ST to avoid being delisted.Finally,this paper puts forward Suggestions on standardizing the earnings management of agricultural companies from three aspects: internal corporate governance,external audit supervision and related system construction.