Local Governments and Earnings Management of the Listed Companies——influences after non-recurring profit and loss;

Thought on the Identification and Disclosure of the Non-recurring Profit and Loss;

In recent years, non-recurring profit and loss has become a sharp tool for listed companies to manipulate profits.

As we all know, recurrent earning is the core income of a company, investors can predict the company future earning by its continuity while extraordinary items can.

Among the various means of the earnings management activities, extraordinary items(EI)often become an important one used by Listed Companies.

According to the durative, earnings can be divided into two parts, ordinary profit and extraordinary items.

Based on the analysis of various extraordinary items,their general impact on a company’s financial situation,and their specific effect on the company’s financial results,this report finds that the overall financial performance of the listed companies has deteriorated due to extraordinary gains and losses.

But many listed companies change their outstanding achievement according to packaging the financial reports with their items of the extraordinary gains and losses, which made investors lose their confidence and such acts would disserve the .