Earnings Management and Fair Value Measurement Model -Research Based on the Statistics of China's Quoted Companies

摘要

With the application of the fair value measurement model in China's quoted companies, the measurement model of China's accounting has opened a new page. According to the new Accounting Standards, the profits and losses on the changes in fair value should be included in the income statement, which will have impact on companies' profits to some extent. This thesis attempts to investigate the influence of this unrealized holding gains or losses on profits. Meanwhile, with the consideration of earnings management, this thesis uses empirical method to investigate whether the gains and losses on the changes in fair value were used in earnings management. With an in-depth analysis and statistics, the results demonstrate that the quoted companies didn't make use of the profits and losses on the changes in fair value to manipulate profits and the use of the fair value is comparatively objective and reliable.