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Analysis of the financial statements of listed companies and information disclosure and revelation of the disclosure case

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									Analysis of the financial statements of listed companies and information disclosure
case and the revelation of the disclosure

  analysis of information disclosure of listed companies
  001 10 24, China Securities Regulatory Commission's chief accountant Cheung,
accounting institutes in the country " independent directors training course "on"
Financial Statement Analysis of listed companies and information disclosure "made
the following set.
  He said: financial information of listed companies by the unprecedented attention
this year. On the negative side, the "Yinguangxia incident" as a starting point, the
whole community financial information of listed companies are vigorously pursued
by the accounting firm has become associated with the street rats, kill them. Whether
listed company or accounting firm, from the securities market development to the
present, have undergone an unprecedented credit crisis. It is not only poor
performance of listed companies, even blue chip stocks for the past expressed doubt
that all the CPA is also suspicious. From a positive point of view, the listed company's
financial information and disclosure and therefore be more attention.

  He pointed out that: The information problem is listed as a root cause of accounting
problems. Therefore, today, mainly from the Public Company Accounting features,
characteristics of the financial audit, annual report and analysis to introduce the five
aspects of this problem.
  1, the characteristics of ownership structure of listed companies
  (1) the majority of listed companies by state-owned enterprise reform, the "through
train" from. Many listed companies in China in the past is not a public offering of
shares of company stock, but the state-owned enterprise restructuring in a few months
for the stock company; or by a limited liability company transformed into joint-stock
companies, and then apply for issue of shares and listing. Since 2000, the Commission
requires companies to apply for one year after the completion of restructuring issue of
shares. But in the past, especially in 1996,1997,1998 years, many companies are
restructuring, issuance, listing in the near future, so we took it as "through train" will
come. This is related to a very large difference between the West and also many of our
companies will create a source of a range of issues.
  (2) countries are at the absolute or relative holding position. Many of the problems in
corporate governance, in fact, is the largest "Big Stock" issue. At the national "Big
Stock" of the case, minority shareholders can not exercise his rights. Ownership
structure of listed companies using this relationship, using related party transactions to
manipulate profits. Proportion of state-owned shares, if purely by country shares, it is
about three per cent more than ten years. However, restructuring state-owned listed
companies come from, so a considerable number of sponsors is state-owned
enterprises, as well as raise a considerable part of the legal person is state-owned
enterprises. So, to say the proportion of state-owned shares to shareholders about 60
percent. The first time that the issuing company, the first major shareholder equity
ratio in 1999 was 56.5%, after listing decreased, but remained 52.1%.
  (3) low percentage of outstanding shares, institutional investors developed. Data
showed that the proportion of tradable shares in China in recent years has been about
one-third, and in each of the new shares, also accounted for about one third of
outstanding shares. In 1999 turnover amounted to 248.5 billion yuan fund, the total
turnover of 7.9%; fund A shares trading volume 102.8 billion yuan, accounting for
only A shares of 3.31% of total turnover. Although the Mass Transit Fund, there is a
better way difficult to reflect the situation of China's institutional investors, but at
least this number reflects the underdevelopment of institutional investors in China.
  (4) the listing of enterprises is often the way with detachment. Taking the year 1999,
85.82 percent of the largest shareholder is the name of a business there, that there is
another listed company behind a business. Among them, 85.82% in 69.21% is the
group. In the first issue of shares (IPO) of companies 94.6% (in 1998, for example) is
a group of top managers of the concurrent listing of part-time, though improving, but
still as high as 62.6%. This is another example of description of the features.
  (5) the stock issuing and listing with a certain amount of planned economy.
  2, the Public Company Accounting features
  (a) the general characteristics of the Public Company Accounting
  listed companies compared with non-listed companies, has the following
characteristics:
  (1) information more open, more detailed: listed companies to provide investors with
more non-financial information, on all the circumstances to be fully explained.
  (2) more realistic: because the investors, if the information is untrue, he was unable
to invest the company's fundamentals, the market did not regulate on the basis of the
development.
  (3) more robust: can not overestimate the profits, assets, but to fully estimate the
possible losses and liabilities, risks.
  (4) financial information of listed companies be audited by certified public
accountants.
  (b) the characteristics of Listed Companies in China
, Listing of enterprises in China are mostly train ride, and often peeling or bundled
listing, peeling, or bundled with a persistent lack of open and rational norms.
, Because most of peeling or bundled, so it is a listed company is listed on the
financial data before the simulation, no reliable historical data as the basis. Because a
company split in two, ripped out the original subject does not exist. General practice
by the securities market, in order to facilitate investment decisions of investors, to
provide 3 years of data, requiring simulation, this is a common practice in various
countries. But also because the practice of simulation, the reliability of financial
information becomes a problem.
, Peel, or bundled with market leading to another problem that is not Banqi legal
process or false.

, Relevant government departments for various reasons, may be all sorts of
interference.
, Because the relationship between the existing law, companies manipulate the great
power profits. By the past, the stock issue price is based on earnings per share and
price-earnings ratio calculated, so that listed companies have a great impulse to
manipulate net income to net income per share of Molecular bigger, a small
denominator. Allotment of the basic conditions of China is relatively simple for
placements in the first 3-year annual return on equity of 10% or more, this can easily
lead to manipulation. Also, the Company Law has provisions for three consecutive
years of suspension loss, many companies in order to avoid suspension, but also
manipulate profits.
, A higher proportion of state shares, and again stripped listed in this particular loop
correction       toad? Br> 6, a higher proportion of state shares, and again
stripped listed in this particular environment, sham will be possible. Related party
transactions and other companies use profits easily manipulated. China's stock market
at this point than any other country in the grave. Since the existence of this
environment, so many of our securities market with the normal rules of the game no
law.
, Based on state-owned enterprises to help alleviate the hardship of maintaining
stability and control considerations profits, bogus and so becomes natural. From local
governments, to make no less than market listed companies, with shares in order to
obtain, on a variety of relationships, by many accounts to the company transfusion.
  sort of reasons as to manipulate our country profits, market manipulation than any
country in the formidable, at least it is with Chinese characteristics.
  3, the characteristics of financial audits of listed companies
  (a) of the financial audit of the general features of
, Three of the financial audit is to express an opinion. Legitimacy, financial statements
prepared in accordance with "Accounting Standards" and other national regulations
relating to financial accounting; fairness, in all material respects, the accounting
statements are fairly reflected the company's financial position, operating results and
financial position of the ; consistency, whether the choice of accounting methods
consistent with the principle of consistency.
, Check fraud, fraud is not the basic purpose of financial audit. Certified Public
Accountant in the audit found irregularities in business, if a violation of the
accounting system, CPA, of course it should be clear, but if that is a violation of other
laws and regulations, so by CPA professional ethics, he should implement the
necessary procedures, such as contact with the company's lawyer said. Because the
CPA is not the all-rounder, for some offense against the law in the end, he had no
authority to comment, have to rely on other people, so there are problems with false
does not necessarily accountants.
, Accountability and audit responsibilities with distinction. Sometimes the company
with false duty, sometimes the responsibility of Certified Public Accountants, and
sometimes both, rather than that all of the company fraud, certified public accountants
have a responsibility.
, Because of the time and cost constraints, most of the sample audit of Certified Public
Accountants. CPA audit is commissioned the audit, he was impossible to check
everything.
, Certified Public Accountant audit examination object is to be based on sound
internal controls. In other words, the enterprise management is based on good faith.
  (b) financial audits of listed companies in China features
, As illegal and non-standardized prevalence of business and accounting system of
criteria and incomplete treatment, specific, and it is difficult to CPA audit opinion on
the legality of that.
, As associated trade is thriving, it is difficult to express an opinion on the fairness.
, Because of organizational structure, business, policy and regulation guidelines
changing, and therefore
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