In some cases, in order to maintain the value of the publicity indicators published by managers, or to issue new shares and sell them in order to borrow money from banks, for example, to see some ways that must be profitable, leaders will check the records of initial profits or fraud. The common favorite ways are as follows: using and disclosing the transactions between circulation related companies. This is equivalent to taking money out of one jeans bag and putting it in another jeans bag. Although the income has not actually changed, it has increased in the accounts. If auditors have doubts about the authenticity and validity of the transaction, they can master the security of the database disclosed by the affiliated company. By selling the equity of an affiliated company, people can make it no longer an affiliated company, but still deal unfairly with it, or deal unfairly with future or potential affiliated companies. Auditors should master obvious unfair transactions and check whether the other party is a potential affiliated company of the audit company. False sales invoices are used to increase profits, and loans are tied with accounts receivable, and some of them will be idle or cancelled in the future. If fraud is bound to leave traces, then the ultimate crime is not easy to exist. Auditors can routinely check the original accounting vouchers such as sales contracts and tax receipts, and know whether the post-processing technology of audit companies is a reasonable way to check whether the income is illegal. When there are various consolidated financial statements or accounting estimates that can replace the principle of revenue recognition, the selected consolidated financial statements or accounting estimates can be changed at will. There are requirements in the accounting standards for enterprises. Once the ways and methods of combining financial statements with accounting estimates are clear, they cannot be changed at will. If the audit company can change it at will, auditors should know that the relevant income standards are not in it.
Second, standardize the calculation of currency and foreign exchange.
Group companies use RMB as their bookkeeping base currency. Foreign exchange transactions are converted into RMB according to the central parity rate of foreign exchange announced by the Central People's Bank on 1 this month, and monetary foreign exchange property and debt are converted into RMB according to this interest rate. The balance sheet date is published by the Central People's Bank. Except for the foreign exchange translation difference directly related to the purchase and construction of fixed assets, the foreign exchange translation difference is included in the purchase and construction cost of related property before the purchased property exceeds the predetermined applicable situation, and other foreign exchange translation differences are the exchange gains and losses included in the income statement. The financial and accounting statements of overseas branches are converted into RMB at the interest rate announced by the Central People's Bank on the balance sheet date, and the new items in the income statement are converted at the interest rate at the time of generation. The exchange difference caused is treated as the exchange difference in the form of foreign exchange. Consolidated financial statements of branches that account for about 50% of the total voting assets of enterprises or have specific decision-making power, but not more than 50%. The operating results are only reflected in the consolidated income statement during the company's operation of the branch. All major internal transactions at the time of the establishment of the joint venture, including unpaid profits and account balances, were offset. Shareholders' equity and income statement of a few companies are recorded separately in the consolidated financial statements. Inventory is divided into real estate development products and non-development design products. Real estate development commodities include completed development and design commodities, newly-built development and design commodities, leased development and design commodities and cultivated land to be developed and designed. Undeveloped design products include raw materials, finished products and consumables with low use value. Inventory goods are priced at planned cost. Cheap consumables can be amortized at one time or in installments. At the end of the year, according to the comprehensive inventory details, for some inventories that cannot be recovered due to damage, obsolescence in whole or in part, or the market price is lower than the cost, the inventory depreciation reserve shall be withdrawn according to the difference between the net realizable value and the cost. The net realizable value of real estate development commodities refers to the single project cost and the use value of development and design commodities after deducting the estimated completion cost and the estimated market sales cost at the estimated market price on the balance sheet date.
Third, the financial reporting trap
Before analyzing the financial reports of listed companies, people should read articles and analyze the notes of financial reports. In the whole process of analysis, people still have to combine notes with financial reports again to find the most important thing in research and analysis, and then make clear the true level of financial reports. More than ten items have been added in the notes to the financial statements, mainly including the basic accounting assumptions and basic information of enterprises. Mainly consolidated financial statements, accounting estimates and preparation methods of consolidated financial statements; Enterprise tax payment matters; Basic information about holding enterprises and Sino-foreign joint ventures; Notes on key new items in consolidated financial statements; Notes on key new items in the financial statements of the parent company; Associated enterprises and their buying and selling relationships; A description of the unexpected situation; Letter of guarantee; New project list after the balance sheet date; Other key issues. Financial accounting is based on some accounting assumptions, and the preparation of accounting statements is generally based on basic accounting assumptions. When a listed company prepares accounting and accounting reports based on recognized basic assumptions, it is not necessary to publish the basic assumptions applied. Non-compliance with generally accepted accounting standards for business enterprises must be publicized and the reasons explained.
Four, financial accounting to solve the harm to profits
The consolidated financial statements follow the special standards and special financial accounting methods selected by listed companies in financial accounting, mainly including: profit determination, inventory as final company valuation, final project investment as final company valuation, intangible assets amortization, fixed capital company valuation, personal income tax carry-over method, long-term equity investment carry-over method, loan expense solution and so on. Accounting estimation refers to the company's judgment based on the information content of the recently obtained transactions or events with uncertain results, which mainly includes: the proportion of bad debt provision, the expected service life of fixed assets, etc. Because the actual main purpose can be to choose consolidated financial statements in different ways, accounting estimation depends on the technical and professional discrimination ability of financial personnel, so choosing different consolidated financial statements and accounting estimates in the original records of the same case can use different financial reports to prepare financial statements, thus obtaining different net profits. When laws, regulations, accounting standards for business enterprises and other administrative regulations stipulate changes to the consolidated financial statements, or in order to change the operating conditions, operating results and cash flow information presented by the company, the listed company shall make changes to the consolidated financial statements. Listed companies are more reliable; When the estimation of enterprises has changed basically, gained new information content and accumulated a lot of work experience, listed enterprises should adjust their accounting estimates.
Verb (abbreviation of verb) mainly combines financial statements and accounting estimates.
Companies must pay taxes, and the collection rate should meet the requirements of civil law, so the key tax and collection rate are ok, and the key lies in preferential tax policies. Generally speaking, tax relief reflects the scope of application of government departments to industrial production. For the enterprise itself, the tax policy will do great harm to today's profits. Publishing news media is a key component of cultural and creative industries, and the state has been fully supporting this industrial chain. As can be seen from the annual report, the personal income tax of most subsidiaries of Zhongnan Media is completely tax-free, and the income tax of key manufacturing industries is divided into two categories: primary and secondary school textbooks are levied at 100% first, and other books are returned at 50%. As far as I know, the publishing and news media manufacturing industries have considerable preferential tax policies in each manufacturing industry. In 20 14 years, the total assets of zhongnan media exceeded 10 billion dollars, and the personal income tax alone decreased by 250 million dollars. The annual report of electronic devices shows that the proposal will be implemented until 20 18 years, which means that if it is not increased in 20 19 years, it will cause great harm to the profitability of publishing and manufacturing industries related to news media. The big problem with the new revenue and operating costs project is that the information published in the notes is too simple and worthless. It is absolutely appropriate to add a lot of useful information to the report of shareholders' meeting to remind investors. However, notes should also be reflected, because notes are part of financial statements, and auditors have the responsibility to check the authenticity, effectiveness and efficiency of information disclosed in financial statements. Nowadays, you will see the same information in different places, but their meanings are quite different.
It is necessary to adjust the financial accounting data information of the branch according to the fair value criterion of identifiable property, liabilities and contingent liabilities on the purchase date, and then solve the combined data information. Although the analysis of enterprise financial statements is very important, it can help information content customers make accounting management decisions, plans and manipulations, but people should also understand the limitations of financial statement analysis and evaluation, and make appropriate adjustments when necessary to help correct them. Decision making. Analysts should find out the existing deficiencies, take corresponding countermeasures to solve them, strive to improve the methods of financial statement analysis and evaluation, and ensure the gradual improvement and development trend of financial statement analysis and evaluation. If contingent liabilities are determined as debts, expenses must be determined, and relevant tips will be given only when they are determined as debts; Or property is not included in income. However, when determining contingent liabilities as debts, the determined expenditure is only an estimated use value, and there is no need to disclose the debt amount. Therefore, investors must estimate the probability and amount of contingent events.