There are many ways. First, adjust the non-operating income or subsidy income. For example, linking normal income to subsidy income to avoid taxes and increase profits. Second, adjust the report subjects, including accounts receivable, other payables and other payables. For example, listed companies hang irrecoverable money on their accounts, inflated assets, or exaggerated other payables to achieve the purpose of tax avoidance or tax reduction. Third, virtual assets, such as adding the incurred expenses to the asset account as prepaid expenses, reduce expenses, inflate assets and adjust profits. Or through deferred amortization, the incurred expenses are amortized less or not, thus increasing profits. Fourth, adjust accounting policies. Some listed companies use the flexibility of accounting policies to change depreciation methods and extend the service life of fixed assets. For example, the norm cost difference of products is shared between products and inventory products, and the products sold in this period are not shared, so as to reduce the sales cost in this period. Fifth, accrual basis means adjusting profits, and sixth, adjusting the value of inventory, for example, fictitious inventory or concealing the shortage or damage of inventory. Seventh, adjust expenses, such as adjusting long-term prepaid expenses and projects under construction, and gradually share them later to smooth profits. Eighth, related party transactions adjust profits, for example, fictitious business, interest adjustment expenses, sharing the same expenses, abnormal price purchase and sale activities, etc. Ninth, tax rebate regulates profits.
Basically, these are the kinds, and I hope to help you when identifying corporate financial reports.