Norms and free game _497

yxfbbiedtj

Norms and free game

[Paper Keywords] business accounting standards; listed company; earnings management [Abstract] exists in the listed company's earnings management in modern financial accounting is an important area of research, however, the definition of earnings management, scholars still hold a different view. Based on this situation,[link widoczny dla zalogowanych], the article start from the definition of earnings management, earnings management described the meaning, causes, and basic operation mode. Meanwhile, in view of accounting standards a significant impact on earnings management, accounting standards around the article generated in the implementation of the role. Analysis of the current earnings management of listed restrictions still exist in space and the problems caused by excessive earnings management, earnings management specification concludes with several recommendations. Finishing. As an important part of the accounting information, accounting earnings represent the most typical of the accounting recognition and measurement of accounting information users to evaluate a performance of the company's most important and comprehensive data. Earnings management in many factors, the accounting standards to be observed as the surplus generated norms, the greatest impact on earnings management. February 2006, the Ministry of Finance issued a new Accounting Standards (hereinafter referred to as reported a substantial convergence between standards. However, given the corporate governance guidelines for the accounting policy for more options, a number of accounting matters and the treatment depends more on the accounting staff of professional judgments, therefore, in general, to provide high quality accounting information at the same time, the existing Some accounting standards for earnings management of listed companies to provide more space. First, the definition of earnings management (a) the content earnings management at home and abroad on the definition of earnings management There are two major differences: First, whether earnings management in accounting within the guidelines allowed by the; the second is whether the means of earnings management, including non-accounting methods, such as time of construction of such arrangements and transactions. This article will restrict earnings management does not violate the context of accounting standards, and that this is different from the earnings management key to financial fraud. In addition, the enterprises the means to a variety of earnings management, not limited to the choice of accounting methods. In view of this, I believe that earnings management should be defined as: business management accounting standards without violating the premise of a destination to take various means to achieve the desired behavior of earnings reports. (B) Basic earnings management operation mode 1. Profit management companies in the Forward operating difficulties, but also much-needed investment capital, they often push the measures adopted before profits. Because at this poor financial situation of enterprises in general, can not achieve the return on equity placement financing conditions; followed by asset-liability ratio is too high, so that potential creditors unwilling to provide credit support. At this point if the profits of enterprises to adopt before the push, to push forward the profits of late about, such as accelerated depreciation to straight-line depreciation change and reduce the extraction ratio of bad debt losses, deferred provision for impairment of long-term investment so you can make profits of the business is current can be improved, so that the placement rate of return on equity lines, but also improve the equity ratio, the enterprise will be easy way to raise funds through borrowing. 2. Profit for the production of smooth measures unstable operating conditions of enterprises, the implementation of profit smoothing method that can pass to the outside world a kind of stability in production and business information, enhance the confidence of investors in the business, stable share price. 3. Measures taken after the shift profits measures after the shift profits year after year, to enable enterprises to increase year by year performance trends, it is beneficial to establish a steady growth in business performance good market image to attract more investors. Second, the existing accounting standards on earnings management of listed companies limit (a) of the stock issued pricing guidelines to reduce cancel the existing inventory LIFO, provides enterprises should adopt advanced first-out method, the weighted average method or the specific identification method to determine the actual cost of inventories. In the case of rising prices, the cost of stock issued by the FIFO method of accounting if the LIFO method instead, will increase the cost of the current period, reducing profits; and if the LIFO to FIFO method, will reduce the current costs and increase profits. Therefore, elimination of LIFO would limit the use of listed companies to issue stock valuation method change to earnings management, enhance the comparability of accounting information. (B) can not be reversed asset impairment provision for the impairment of assets will increase business costs and reduce the current period profits back to the opposite. Through the provision for the impairment and reversal of all the profits of the enterprise can be in a different accounting period to re-allocate, therefore, it is a listed company has been a common means of earnings management. Provisions of the existing guidelines for asset impairment, in addition to inventory, measure the fair value method of investment real estate, consumable biological assets, the assets of the formation of construction contracts, deferred tax assets, finance lease the lessor unguaranteed residual value, Standard 22 - Financial Instruments Recognition and Measurement This provision will make the impairment adjustment of profits by getting smaller and smaller space, the use of this provision means adjustment of profits more difficult. (C) the consolidated financial statements present the consolidated extend the provisions of the consolidated financial statements of standards, the consolidated financial statements should be consolidated to determine the basis of control. The so-called control, is a business enterprise can determine other financial and operating policies, and can, according to business activities from another to obtain benefits from power. And the subsidiaries, shall be included in scope of consolidation, rather than just considering ownership. The expansion of the scope of consolidation, eliminate the use of reduced ownership percentage of the enterprise, separation of certain subsidiaries of the methods, the operating conditions of bad business to exclude from the scope of consolidation, thus glossing over the overall performance of the practice of enterprise groups. Third, under current accounting standards earnings management approach and problems (a) The Accounting Standards Earnings management methods 1. Depreciation of fixed assets, fixed assets, current guidelines provides enterprise shall, at least the end of each year, the service life of fixed assets, estimated residual value and depreciation method are reviewed. The expected useful life or the expected net salvage value and the previously estimated a difference, it shall adjust the net fixed assets estimated useful life or salvage value. Fixed assets to achieve the expected economic benefits related to a major change in approach, fixed assets depreciation method should be changed. Useful life of fixed assets, estimated residual value and depreciation method changes as changes in accounting estimates should be used for treatment of the future, no retrospective adjustment. The amount of fixed assets is generally greater, listed companies only need to be adjusted by the depreciation period to the performance can be a degree of control. Change the depreciation method of fixed assets are no longer retroactive adjustment of the listed companies can change the fixed assets depreciation method to manage the surplus. 2. Intangible development costs capitalized existing standards require intangible assets, internal research and development project expenditures should be divided into research expenditures and development expenditures. Among them, the research phase of the expenditures should be counted in the profit or loss occurs; development expenditures, to meet certain conditions, can be recognized as intangible assets.