Listed companies will use the following related party transactions to fabricate profits. ?
1, related purchase and sale fraud
Related purchase and sale fraud refers to the fraud of listed companies by using the purchase and sale activities between related parties. According to the provisions of China's accounting standards, when there is a purchase and sale between a listed company and its subsidiary or brother company, there is a purchase and sale between a listed company and its parent company;
Need to be offset in the consolidated report. When the purchase and sale transaction occurs, because the listed company provides a single statement instead of a consolidated statement, it cannot be offset, but the related parties and related transactions need to be disclosed in detail in the notes.
2. Entrustment business fraud
Entrusted operation fraud refers to the listed companies taking advantage of the lack of entrusted operation laws and regulations in China to achieve the purpose of profit manipulation. This is a new report fraud method.
In practice, listed companies often entrust non-performing assets to related parties for operation and charge high returns at agreed prices. This not only avoids the loss of non-performing assets, but also gains a profit out of thin air, and this return is often hung on the current account, and there is no real cash inflow, so it is only a false "statement profit".
3. Fraud in capital transactions
Although China's laws do not allow enterprises to borrow funds from each other, there are still many listed companies that lend the raised funds to the parent company or other related parties that are not included in the consolidated statements because there are no good investment projects, and charge the capital occupation fee at the agreed high interest rate, thus inflating profits.
4. Cost allocation fraud
Cost allocation fraud means that listed companies adjust their profits by manipulating the sales and management fees that should be shared with related parties. There are often agreements between some listed companies and group companies to pay and share expenses, which has become a means for listed companies to manipulate profits.
Extended data
Enterprises and funds involved in lending activities must meet the following conditions:
1. The enterprise that borrows and lends funds must be a legal person with independent operation and accounting, and the funds can be independently controlled and used, and it can engage in various economic decisions and activities and enjoy a good reputation in society;
2. The enterprise that borrows funds must have certain self-owned funds and actual repayment ability, so as to ensure the repayment of principal and interest on schedule.
3 enterprises to lend funds must meet the following sources:
(1) Self-owned funds temporarily idle by offices, companies and affiliated enterprises and institutions of the Bureau;
(2) Available and unused special funds:
(4) Temporary idle funds raised from various channels. Bank loans may not be lent.
4. The funds borrowed by the enterprise must be used for the following aspects:
(1) The bank has approved the technical transformation and project establishment of the loan. Before the bank loan is issued, the enterprise can temporarily supplement it by borrowing;
(2) 10% to 30% of the self-raised funds required for enterprise loans can be temporarily supplemented by borrowed funds when the enterprise has difficulty in raising enough funds at one time;
(3) Short-term liquidity urgently needed by the production and operation of the enterprise;
(4) part of the funds needed for technological transformation projects with low investment, high efficiency and quick results. The purpose of enterprise borrowing should be mastered in the above scope, and it cannot be used for long-term investment in fixed assets, let alone for profit by lending.
Baidu Encyclopedia-Corporate Capital Lending
Baidu Encyclopedia-Related Party Transaction Fraud