It's hard to write. Earnings management of listed companies is a subject with relatively large risk exposure, with too many variables and different situations under various assumptions.

Undergraduate thesis is not recommended to write such a big topic, which is easy to write a feeling of emptiness, unfocused and not landing.

If it can be changed, it is best to change a more focused specific problem. At the undergraduate stage, we can try to solve a practical analysis combining accounting theory with practice. I answered a similar question yesterday, so I will post it again.

For example, in February this year, Buffett once again bluntly stated in his letter to shareholders that the new accounting standards that came into effect on 20 18 required him to confirm the profit and loss of his shares according to the difference between the share price and the cost price at the end of the reporting period.

For Berkshire Hathaway, a company with a stock investment of about $200 billion, the fluctuation of stock price has led to a jump in the company's income statement. From the perspective of Buffett and Munger, this new policy can not better reflect the actual financial situation of the company.

For another example, according to the new financial instrument standards implemented in 2065438+2009 1, listed companies changed the accrual method of bad debts of accounts receivable from the original aging analysis method to the expected credit method. In the interim report of 20 19, Hikvision adopted the new expected credit method to calculate, and the proportion of comprehensive provision for bad debts of accounts receivable accrued according to the original aging analysis method decreased slightly. Investors immediately began to doubt whether the company used the new standards to create profits.

Other aspects:

In addition, when China Ping An published its annual report last month, it specifically explained the changes in major accounting estimates, saying that the company's accounting estimates for its insurance contract reserves had changed, resulting in a decrease of 20.7 billion in the company's profit for 20 19. Another investment doubts whether the company uses accounting changes to retain profits. This is another conflict.

If we can't change the topic, we suggest that we can find more specific perspectives and problems in earnings management and conduct in-depth discussion and analysis on this specific issue. For example, the impact of accounting policies and accounting estimates on enterprise earnings management.