Research On The Recognition Of Earnings Management Based On Book-tax Differences Under The New Income Standards

With the rapid economic growth,China’s capital market continues to develop and improve,gradually becoming an important channel for resource allocation and enterprise financing.Stable and rich investment returns have become the focus of investors.Enterprises disclose reliable accounting information to users of financial reports timely and accurately through the disclosure of accounting reports,and guide the flow of capital and the allocation of resources.Therefore,the quality of accounting information is increasingly concerned by investors.However,in order to meet the expectations of investors and further obtain more funds,listed companies often carry out earnings management,whitewash the accounting performance of enterprises and disclose distorted accounting information;At the same time,due to the improvement of the external audit level,the improvement of the internal control system,and the continuous strengthening of government supervision,the company’s earnings management behavior is more hidden.Under the current mode of separation of accounting and taxation,the differences between accounting and taxation exist objectively.The causes of book-tax differences can be classified into institutional factors,earnings management and tax avoidance motivation,in which earnings management can significantly affect book-tax differences.Earnings management significantly affects the accounting tax difference by manipulating the accounting profits and taxable income of enterprises;However,the current separated accounting tax relationship model weakens the protection and supervision of the tax law on the quality of accounting information,and objectively provides an opportunity and space for the management authorities to carry out earnings management through book-tax differences.In 2018,the new income standard began to be implemented,which objectively standardized the revenue recognition behavior of enterprises.However,during the transition period and subsequent years,enterprises are still exploring new space and new means of earnings management.Therefore,the improper application of the new income standard is likely to provide new means for enterprises to manage earnings,and may also cause the further expansion of book-tax differences.The accounting information disclosed by enterprises in the current market may be presented by enterprises after earnings management,and the guidance and reference functions of traditional accounting indicators are gradually weakened.Therefore,this thesis explores the role of book-tax differences in identifying earnings management through literature research,theoretical analysis and case study.By analyzing the booktax differences of enterprises,this thesis studies the causes and the changes of book-tax differences,analyzes earnings management from the perspective of book-tax differences,and identifies the earnings management behavior of enterprises,and then comes to the conclusion that under the background of the new income standards,booktax differences can identify earnings management,which has important reference significance for the analysis of enterprise financial reports and the discovery of earnings management behavior.This thesis provides investors with a method to identify the earnings management behavior of enterprises according to the changes of book-tax differences,and provides a new perspective for internal supervision,i.e.the internal control department of enterprises,external supervision,i.e.audit,and the government,especially the tax department,so that the government can strengthen the restriction on earnings management,prevent the occurrence of excessive earnings management,protect listed companies and investors,and standardize the market order.This thesis has 9 figures,11 tables and 80 references.