Abstract: The listed companies has certain degree of freedom to account asset impairment, which is widely used by many listed companies to achieve the purpose of earnings management. Under the background of the new depreciation criterion of listed company, this paper research the specific relevance of asset impairment and earnings management. Then we analyze the motivation of earnings management of listed companies, and why and how to account asset impairment for the purpose to make earnings. Finally, this paper suggests the countermeasures to perfect the listed company earnings management.

Key words: Assets Depreciation, Public Companies, Earnings Management, Motivation