In the past, affiliated transactions were the most common way to manipulate the profits of listed companies. Although this kind of transaction is essentially the final transfer of listed companies' interests to major shareholders, in order to preserve shell resources in the event of financial crisis of listed companies, major shareholders often "inject water and salt" into listed companies through related party transactions at unreasonable prices, whitewash the financial statements of listed companies and deceive investors. In order to curb the proliferation of such related party transactions, the Ministry of Finance implemented the "Interim Provisions on Accounting Treatment Issues such as Selling Assets between Related Parties" at the end of last year, and recognized the income from related party transactions as capital reserve. As a result, some listed companies disassociate related party transactions: some choose the trading time before they formally enter the listed company, because they are not related parties at this time, and they can justifiably avoid the supervision of related party transactions; Some transfer the shares of affiliated enterprises or terminate the transfer of related shares before the transaction, thus nominally dissolving the relationship, and the corresponding transaction is no longer a related transaction; Some use extracorporeal circulation to indirectly control listed companies through multiple joint ventures, making the relationship between them irrelevant ... Thus, related transactions are hidden, which not only escapes the supervision of the regulatory authorities, but also greatly changes the financial statements of listed companies, realizing paper wealth, thus increasing the potential risks of investors.
Although related party transactions have been completely changed, they will not be reflected in the accounting statements of listed companies by the unfair nature of related party transactions. Related party transactions increase main business income or non-operating income by buying low and selling high, and increase investment income by means of asset replacement and share transfer. Therefore, investors can check whether there are abnormal changes in accounts such as main business income, non-operating income, accounts receivable and investment income. Whether the CPA explains this transaction in the audit report, whether the transaction pricing and payment methods conform to the routine, so as to find unfair related transactions and eliminate their influence, so as to determine the reliability of accounting statements.
Reference link: Non-related transactions _ Baidu Encyclopedia
/view/4447794.htm