Datang Power Generation Using Deferred Income Tax Earnings Management Research

With the convergence of accounting standards and international standards,the method of tax accounting in our country has been adjusted in the new accounting standards,and the previous "tax law" and "tax impact accounting method" are revised as "balance sheet debt law" and introduced the concept of deferred income tax differences.The new income tax accounting criterion has a large elastic space in the deferred income tax identification,and the practical case guidance is less than that.Therefore,deferred income tax is gradually becoming a hidden surplus management method adopted by listed companies.The enterprise use the deferred income tax to carry out the surplus management,adjust the profit,the financial statements,provide the financial statements that are not in conformity with the real profit,mislead the decision of the investor,and affect the healthy development of the capital market.Therefore,it is of great significance to study the problem of deferred income tax surplus management.Datang Power Generation is a power generation industry listed company,its use of deferred income tax earnings management case has a certain representative.This paper takes Datang Power generation as the research object,using literature research method,case analysis method,comparative analysis method,etc.,to analyze and study the deferred income tax earnings management case of Datang power generation.Firstly,the recognition and composition of deferred income tax of Datang power generation are analyzed in detail,and it is found that Datang power generation mainly uses deductible loss,internal transaction unrealized profit,deferred income and asset impairment reserve and other means to recognize deferred income tax assets for earnings management.Then,the evaluation of the financial consequences of the above means,it is concluded that the deferred income tax earnings management of Datang Power generation increases the total assets and net profit of its financial statements,and overestimates the profitability,solvency and growth ability.Secondly,the case of Datang power generation using deferred income tax for earnings management is reviewed,and the problems of Datang power generation using deferred income tax for earnings management are found: first,the lack of internal control;Second,the external audit institutions fail to be diligent and responsible;Third,the income tax accounting standards are fuzzy.Finally,this paper combined with the case to prevent the use of deferred income tax earnings management three suggestions: first,standardize the enterprise internal control suggestions,including improving the enterprise internal control environment,implement the enterprise internal control activities,improve the internal control supervision mechanism;The second is to strengthen the supervision of the external audit institutions,including the establishment of the industry integrity restraint mechanism and improve the industry illegal costs;The third is to improve the accounting standards of the suggestions,including quantitative criteria,the setting of allowance accounts and standard disclosure standards.It is hoped that the above research can supplement and improve the theoretical research of deferred income tax and earnings management,and provide ideas for optimizing the accounting standards of deferred income tax and strengthening the supervision of earnings management of enterprises.