Research on the Impact of Changes in Accounting Standards on Classified Transfer Earnings Management

From the Perspective of Accounting Profit and Non-Recurring Gains and Losses

DOI

10.2991/aebmr.k.220405.054How to use a DOI?

Keywords

The Accounting standards; The income statement items; The classified transfer earnings management; Non-recurring gains and losses

Abstract

In 2017, Ministry of Finance added The Accounting Standards for Business Enterprises No. 42 - non-current assets held for sale, disposal group and termination of operation, and revised The Accounting Standards for Business Enterprises No. 16 - government subsidies. The new standard has changed the position of filling in the income statement of the information of gains and losses on the disposal of non-current assets and the information of government subsidies, and adjusted the information originally reported in the non operating income and expenditure to a greater extent above the operating profit, which is usually regarded as non-recurring profit and loss by the information users. Therefore, from the perspective of accounting profit and non-recurring profit and loss, this paper divides the objects of classified transfer earnings management into two categories: one is the classified transfer earnings management of income statement items, and the second is the classified transfer earnings management of non-recurring profit and loss items. Based on the unbalanced panel data of A-share manufacturing listed companies from 2014 to 2020, this paper uses the fixed effect model for regression to infer the impact of the reform of accounting standards in 2017 on the two types of classified transfer earnings management. The results show that after the change of the standards, the degree of listed companies using non-current assets disposal profits and losses and government subsidies to classify income statement items and transfer earnings management has increased. For the classified transfer of earnings management of non-recurring profit and loss items, the degree of classified transfer of earnings management by listed companies using government subsidy items has improved after the change of standards, but the degree of classified transfer of earnings management by listed companies using profit and loss items of non-current assets disposal has not changed significantly after the change of standards.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Huang Siyuan
AU  - Hu Jiahao
AU  - Min Jie
PY  - 2022
DA  - 2022/04/29
TI  - Research on the Impact of Changes in Accounting Standards on Classified Transfer Earnings Management
BT  - Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022)
PB  - Atlantis Press
SP  - 329
EP  - 339
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220405.054
DO  - 10.2991/aebmr.k.220405.054
ID  - Siyuan2022
ER  -