Analysis of Listed Companies’ profit manipulation under the Existing Accounting Standards
Abstract
The implementation of Existing Accounting Standards,which realize the substantive convergence with the International Accounting Standards,curbes the issue of profit manipulation which is widespread in the listed companies to a certain extent.The applications of more stable and specific basic criteria reduced the profit space the listed companies can adjust greatly and improve the quality of submit information of listed companies,so as to provide a powerful guarantee to the health development of China’s economic and the constant improvement of capital market.
It starts from the basic concept of profits manipulation,makes awareness of the dangers of profit manipulation,studies about the cause of profit manipulation of listed companies and discusses about the means of profits manipulation.It with the contrast between the influence of Existing Accouting Standards and the old criteria to the profits manipulation of the listed companies through it. It analyzes the Existing Accounting Standards’ containment to profits manipulation of listed companies and presented the issue of profit manipulation on existing guidelines.It highlights the advantages and limitations of the Existing Accounting Standards’ curbing the profit manipulation of listed companies, and comes to some recommendations and conclusions on curbing profits manipulation of listed companies in the course of discussion.It provides some reference to the effective containment to profit manipulation of China’s listed companies.
Key Words：Profit Manipulation ；Accounting Standards；Related Party Transactions；Assets For Impairment
