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On the new accounting standards on earnings management to curb the role of space

[Abstract] earnings management is the business managers to obtain certain private interests for the purpose of the relevant interest groups forced the pressure on its earnings expectations in the constraints of generally accepted accounting principles to select the most favorable accrual accounting policies or control projects, reported earnings in order to achieve the desired level. By analyzing the specific provisions of the new guidelines, discussed the new guidelines to curb enterprise earnings in the role of space management. [Key words] GAAP financial reporting earnings management Essentially, the profit earnings management is a manipulation, but the profit manipulation fraud by illegal means to artificially increase or profits resulting reduced; earnings management is in the accounting standards and accounting system to the extent permitted to select appropriate accounting policies to seek a more favorable financial results. Chinese papers League finishing. First, accounting standards on earnings management earnings management is to achieve the ultimate goal of corporate management to maximize their own interests, is to report earnings information in corporate accounting Accounting standards of accounting information is the intervention of the constraints and limitations, can be said that accounting is the double-edged sword, too wide accounting standards, corporate management's earnings management behavior will spread, stakeholders have suffered due to false accounting information economic loss; accounting standards are too stringent, enterprise management restrictions on freedom of professional judgments, thus affecting the efficiency of management. Therefore, the accounting standards for earnings management on the one hand with the role of limitations and constraints, on the one hand and earnings management for the enterprise provides the legal maneuvering space. 1. Accounting standards and disclosure of accounting information generation based to reduce the corporate property relations arising from asymmetric information,[link widoczny dla zalogowanych], company managers must submit financial reports to reflect the company's financial position and operating results. Technical features of accounting standards will inevitably determine the limits of accounting standards management accounting policy choice of freedom. GAAP accounting information not only for recognition, measurement, recording and reporting made a specification, but also the quality of accounting information presents a comprehensive requirements, if the strict quality requirements in accordance with the accounting information generated, can effectively prevent the occurrence of earnings management. In addition, the SFC sector accounting standards or disclosure of information that exist in the accounting inaccuracies, cover, misrepresentation, fraud and other issues important basis for subsequent discipline. 2. Defects in accounting standards to the enterprise provides the conditions for the implementation of earnings management accounting information and decision-making effect of the distribution of wealth determines the effects of accounting standards is the business stakeholders and the accounting standard-setting game between the times results. In order to balance the economic interests of the development and implementation of accounting standards to reduce the resistance, to ensure that the results of the game acceptable to all parties, accounting for some economic activities must be retained on the choice of accounting treatment. 3. The common accounting standards and corporate personality there space in the coordination of the various enterprises situation is very different economic environment they face are varied and complex, the government can not sweep Accounting deal with all the standard formulation and implementation, but only to a universal, common to GAAP accounting standards that make provision for the special accounting policies remaining companies left to choose. Second, the new accounting standards for listed companies to curb the impact of earnings manipulation 1. Inventory valuation method change, the inventory adjustment of profits by means of failure issued new guidelines to cancel the LIFO inventory valuation method , provides enterprise shall adopt the FIFO method, the weighted average method or the specific identification method to determine the actual cost of inventories. Canceled the issue of the LIFO inventory valuation method, which enables enterprises to truly reflect the inventory turnover, current inventory costs of all enterprises are an objective reflection of the historical cost, adjusted to eliminate the human factor. This change will enable enterprises to change the inventory valuation method to adjust the current level of profits can not be used conventional means to facilitate operation of the business analysis and comparison of the performance and improve the use of accounting information value.