(1) Fictitious economic business, inflated assets, reduced liabilities, artificially inflated the asset scale and financial strength of affiliated enterprises.
For example, the parent companies of some listed companies sell trademark rights, patents, technologies and other assets to listed companies at prices much higher than fair value, or pay off debts to listed companies.
The parent company of a foreign-funded enterprise sells equipment, technology and raw materials. The transfer to a foreign-funded enterprise at a high price inflated the book value of related assets. Investment between affiliated enterprises can also overestimate the book value of non-cash assets through the above means, thus achieving the purpose of inflating capital.
In addition, through mutual investment and equity participation between affiliated enterprises, the assets of both parties have expanded, which has affected the correct judgment of users of accounting statements on the capital strength and asset scale of enterprises.
(2) Fictitious profits.
Fictitious sales revenue and profits and whitewashing financial statements through related party transactions are common fraudulent means of affiliated enterprises. The main method is: 1.
In the purchase and sale of goods or services, affiliated companies buy raw materials, spare parts or services from their parent companies or other related parties at lower prices, and sell goods or provide services to their parent companies or other related parties at higher prices, thus inflating profits. For example, when some companies go public, they are formed by separating, reorganizing and integrating the assets of the parent company. After listing, there is still a close relationship with their parent company in terms of supply, production and sales services. When listed companies face losses, the parent company can increase the income of listed companies and adjust their profits by buying a large number of products and selling raw materials to them at lower prices. The parent company also reduces the expenses payable by listed companies, or bears the management expenses and financial expenses of listed companies, so as to achieve the purpose of shifting expenses and adjusting profits. Some enterprises even achieve the purpose of whitewashing statements by fictional accounts receivable, accounts payable and other assets and liabilities business, income expenses and profit items. On the other hand, some companies reduce their income and profits through reverse operation to achieve the purpose of tax evasion or transfer of funds. 2
Adjust profit and financial status through asset reorganization. The parent company adjusts the financial status and operating results of the borrowing enterprise by replacing the non-performing assets of the borrowing enterprise with high-quality assets, buying its creditor's rights at a high price, bearing its expenses or debts, and paying the capital occupation fee. 3.
Exchange funds at low interest rate or high interest rate, and adjust financial expenses. four
. Collect or pay management fees or share the same expenses to adjust profits.
(3) Falsely increasing the operating performance of affiliated enterprises by means of entrusted operation, entrusted operation and cooperative investment.
For example, under the factors of long investment project cycle and high risks faced by affiliated companies, if part of the cash is transferred to the parent company, entrusted to the parent company or invested in cooperation with the parent company, all or part of the investment risks will be transferred to the parent company, and the return on investment income will be determined as the profit of the affiliated company in the current year.
(4) Lease assets, replace assets and replace equity by means higher or lower than the market price.
Taking asset transfer and replacement as an example, high-quality assets are listed at a very low price, and listed companies can obtain high-quality assets at a very low cost, which can bring rich profits, thus fundamentally changing the operating conditions of listed companies and manipulating profits through unequal exchange.
(five) the use of enterprise bankruptcy liquidation procedures, against the interests of creditors.
For example, bankrupt enterprises distribute and transfer assets to related parties free of charge before bankruptcy liquidation; Selling goods or assets to related parties at a lower price; Providing guarantee for the debts of related parties without property guarantee; Pay off the debts of related parties in advance; Give up the creditor's rights to related parties or delay the exercise of creditor's rights. Either way, it will reduce the distributable property and increase the losses of creditors.