The first is the method of "spending money to buy food". That is, using changes in accounting policies to adjust profits.
For example, in the process of drawing bad debt reserve, short-term investment impairment reserve, inventory depreciation reserve and long-term investment impairment reserve, some listed companies have drawn huge inventory depreciation reserve and bad debt reserve in an annual report, resulting in huge losses in that year, which also provides greater convenience for them to turn losses in the next year.
The second is the "grafting" method.
In other words, the expenses are linked to the "prepaid expenses" first, and the prepaid expenses reduce the current expenses, and then the expenses are quietly digested by other means.
The third is the method of "borrowing chickens to lay eggs".
That is, using related party transactions to adjust the "other business income" items, or reducing the company's expenses this year in a way that other units are willing to bear certain expenses, thereby increasing profits. In addition, it also includes transferring or leasing assets to related parties or hosting assets for related parties to increase income. This is actually a disguised form of turning the benefits of others into their own benefits.
The fourth is the "stealing the sky" method.
That is to say, realize sales in advance, even make fake sales before the report date, and then return the goods after the report is issued, thus inflating the current profit.
The fifth is the "stealing the beam and replacing the column" method.
That is to say, the accounts receivable are recovered from the affiliated enterprises, and the amount is transferred from the book to the other party in the form of short-term financing of the unit, giving people the illusion that the accounts receivable occupied by the affiliated enterprises are reduced, and at the same time taking the opportunity to make less provision for bad debts in this period and reduce expenses.
Six, "fill in the blanks" method 0.
In other words, in the process of asset reorganization, the total profit can be easily increased by means of fixed assets inventory surplus, asset appraisal appreciation, asset or equity premium transfer, etc. Of course, the simpler way is government subsidies.