The Reserve for The Impaired Assets and Profit Manipulation
Yuan Xiao · Journal of Changsha Aeronautical Vocational and Technical College · 2004
The amortization of the reserve for the impaired assets has play a very important role in improving the quality of accounting information, but profit manipulation by using the reserve for the impaired assets has become an urgent problem be solved. This article classifies the companies into profit companies and deficit companies. By analyzing the appearances that these companies use the reserve for the impaired assets to control the profits, it points out the reasons of the frauds and presents some strategies to prevent the companies from controlling the profits by the reserve for the impaired assets.