In order to prevent possible risks, China's accounting standards have formulated strict definition standards and disclosure norms for related party transactions. However, there is still a lot of room for interest transfer in related transactions of many listed companies.
1, using related party transactions to adjust profits and create the illusion of "turning losses into profits"
This is one of the important ways for listed companies to maintain profits, and affiliated companies can also benefit from it, so affiliated transactions have become the "means" of many "enterprising" listed companies. The biggest feature of profit manipulation through related party transactions is that enterprises that are about to lose money or have lost money can turn losses into profits instantly. From the perspective of financial accounting, it is generally through other business income, investment income, non-business income, accounts receivable, other receivables and other accounting subjects to earn superficial profits. In fact, this does not really improve the operating conditions of enterprises, but only by adjusting the data on the books to defraud investors' trust and achieve the so-called "profit maximization".
2, the use of related party transactions for profit adjustment, resulting in "loss of state-owned assets."
Another feature of profit manipulation by using related party transactions is that the profits of many state-owned enterprises are transferred from unlisted enterprises to listed companies, which eventually leads to the loss of state-owned assets through various means.
3. Asset reorganization has stripped the burden of listed companies.
2065438+In April 2007, rainbow shares issued an announcement, prompting the sale of major assets and related transactions. In fact, it is to divest non-performing assets. Rainbow shares will sell the LCD production line eliminated in the previous generation to non-listed companies, so that listed companies can maintain better profitability and thus better stock prices. In China stock market, it is very common to beautify statements in this way. In order to make the listed financial report look better and win the favor of investors, the non-performing assets are stripped by this means.
4, the use of asset leasing and entrusted business transfer income.
After many listed companies divested their non-performing assets and went public, their operating conditions improved greatly, so they began to "transfuse blood" to the unlisted part in disguise: first, they operated their business by leasing the venues of unlisted companies; The second is to entrust some business to non-listed companies.
No matter what kind of related party transactions, once the proportion far exceeds the needs of normal operation, there is the possibility of modifying financial reports through related party transactions. Too many related party transactions will reduce the competitiveness and independence of the company, and will also lead to problems such as interest correlation.
So can related party transactions be reduced or even eliminated?
The most important part of enterprise compliance management is to reduce or avoid related party transactions. You can troubleshoot from the following two aspects:
1. It is necessary to judge whether there is a relationship between the partner and the main company, affiliated companies and their affiliates, so as to avoid the risk of related party transactions. Too many related party transactions will reduce the competitiveness and independence of the company, and will also lead to problems such as interest linkage. We can quickly identify the relationship in happy treasure through group-by-group investigation.
2. Pay attention to whether there is any relationship between partners, and reduce the influence and manipulation of partners on the company's business, which is conducive to improving the stability of the company's business. Through the centralized investigation of Qixinbao's relationship investigation, the relationship between partners can be identified.