The CSRC has once again stepped up its listing review to crack down on IPO corporate whitewash performance
For those IPO companies that have listed qualifications and attempt to “blind through customs†by means of performance and profit manipulation, in the face of the strict supervision signal released by the CSRC, “resolving difficulties†or the best choice.
The latest sponsor training materials obtained by the reporter showed that, unlike the previous training courses, which mainly explained the specific practical issues during the IPO review process, the relevant person in charge of the CSRC focused on “further improving transparency and restricting participation in various markets. The main body behavior, "further strengthen the supervision of the auditing process of accounting firms", "further strengthen the supervision of whitewash performance, profit manipulation behavior" and other three aspects, especially pay attention to IPO enterprise whitewash performance, profit manipulation behavior.
It is understood that since 2006, a total of 231 companies' IPO applications have been rejected by the China Securities Regulatory Commission, in addition to the problem of continued profitability, "the financial data is abnormal, and the prospectus failed to make a reasonable explanation" is also proposed to IPO companies listed One of the main reasons for the shackles. Behind the abnormal financial data, it often reveals the performance of some companies' whitewashing and profit manipulation.
According to the above-mentioned person in charge, the IPO enterprise's whitewash performance and profit manipulation are mainly reflected in three ways. The first is fictitious performance and fraudulent listing. *ST Land is a typical representative of such companies. From 2004 to 2009, there were illegal activities such as false assets, false purchases, and false sales revenues. It was also suspected of fraudulent issuance and falsification of official documents such as state organs.
In contrast, manipulating profits at the executive level of accounting standards is more common in IPO companies. The commonly used manipulation method is to change the accounting policies and accounting estimates, which are embodied as “extending the depreciation period of fixed assets, reducing the proportion of bad debts, changing the way of revenue recognition, etc.â€. Because accounting standards allow for changes in accounting policies and accounting estimates, they are subject to the principle of prudence. Therefore, in the IPO review process, the CSRC requires the issuer not to change the accounting policies and accounting estimates at will. If the risk level after the change is higher than the average level of listed companies in the same industry, it is determined that the principle of prudence is not met.
As for some IPO companies using accounting standards "blind spots" or adopting new methods to implement profit and asset manipulation behavior, the regulatory authorities have in recent years formulated a number of financial auditing standards to "block". For example, at the beginning of 2011, the regulatory authorities found that some IPO companies sold their shares to senior executives or core technicians at a low price through capital increase or transfer, and there was a large gap in executive pay before and after listing. The phenomenon of cost. Based on this, the CSRC conducted in-depth research on relevant accounting standards, and finally formed a consensus on how IPO companies implement share-based payment guidelines. Since 2011, a total of 39 IPO companies have confirmed the share payment of 722 million yuan, accounting for 13% of the net profit before deducting share payment.
In addition, artificially changing the normal production and operation activities (deferred payment to increase cash flow, postponing advertising investment to reduce sales expenses, etc.) is also one of the means for IPO companies to whitewash their performance. In particular, the regulatory authorities pointed out that IPO companies with obvious operational signs and leading to deterioration of financial indicators will be brought to the attention of the members of the audit committee in the preliminary report. Taking a textile company listed in 2010 as an example, its sales revenue and profit increased well during the reporting period, but the company's inventory amount was large, and the inventory turnover rate was 1.53, far lower than the average level of 4.23 of listed companies in the same industry. The rate reached 78% and there were a large number of illegal bill financing.
The latest sponsor training materials obtained by the reporter showed that, unlike the previous training courses, which mainly explained the specific practical issues during the IPO review process, the relevant person in charge of the CSRC focused on “further improving transparency and restricting participation in various markets. The main body behavior, "further strengthen the supervision of the auditing process of accounting firms", "further strengthen the supervision of whitewash performance, profit manipulation behavior" and other three aspects, especially pay attention to IPO enterprise whitewash performance, profit manipulation behavior.
It is understood that since 2006, a total of 231 companies' IPO applications have been rejected by the China Securities Regulatory Commission, in addition to the problem of continued profitability, "the financial data is abnormal, and the prospectus failed to make a reasonable explanation" is also proposed to IPO companies listed One of the main reasons for the shackles. Behind the abnormal financial data, it often reveals the performance of some companies' whitewashing and profit manipulation.
According to the above-mentioned person in charge, the IPO enterprise's whitewash performance and profit manipulation are mainly reflected in three ways. The first is fictitious performance and fraudulent listing. *ST Land is a typical representative of such companies. From 2004 to 2009, there were illegal activities such as false assets, false purchases, and false sales revenues. It was also suspected of fraudulent issuance and falsification of official documents such as state organs.
In contrast, manipulating profits at the executive level of accounting standards is more common in IPO companies. The commonly used manipulation method is to change the accounting policies and accounting estimates, which are embodied as “extending the depreciation period of fixed assets, reducing the proportion of bad debts, changing the way of revenue recognition, etc.â€. Because accounting standards allow for changes in accounting policies and accounting estimates, they are subject to the principle of prudence. Therefore, in the IPO review process, the CSRC requires the issuer not to change the accounting policies and accounting estimates at will. If the risk level after the change is higher than the average level of listed companies in the same industry, it is determined that the principle of prudence is not met.
As for some IPO companies using accounting standards "blind spots" or adopting new methods to implement profit and asset manipulation behavior, the regulatory authorities have in recent years formulated a number of financial auditing standards to "block". For example, at the beginning of 2011, the regulatory authorities found that some IPO companies sold their shares to senior executives or core technicians at a low price through capital increase or transfer, and there was a large gap in executive pay before and after listing. The phenomenon of cost. Based on this, the CSRC conducted in-depth research on relevant accounting standards, and finally formed a consensus on how IPO companies implement share-based payment guidelines. Since 2011, a total of 39 IPO companies have confirmed the share payment of 722 million yuan, accounting for 13% of the net profit before deducting share payment.
In addition, artificially changing the normal production and operation activities (deferred payment to increase cash flow, postponing advertising investment to reduce sales expenses, etc.) is also one of the means for IPO companies to whitewash their performance. In particular, the regulatory authorities pointed out that IPO companies with obvious operational signs and leading to deterioration of financial indicators will be brought to the attention of the members of the audit committee in the preliminary report. Taking a textile company listed in 2010 as an example, its sales revenue and profit increased well during the reporting period, but the company's inventory amount was large, and the inventory turnover rate was 1.53, far lower than the average level of 4.23 of listed companies in the same industry. The rate reached 78% and there were a large number of illegal bill financing.
How to operate the Bamboo Diffuser ?
- 1. Position the Bamboo Diffuser upright, Pull vertically upwards to remove cover.
- 2. Connect AC adaptor power cord into the DC input jack at the base of the Bamboo Oil Diffuser. It is suggested to route cable via track provided.
- 3. Add water and essential oil into Aromatherapy Diffuser.DO NOT excess of ''MAX'' line. DO NOT use boiling water. DO NOT fill when power is on. It is recommended to add 2-3 drops of essential oil for each 100ml of water.
- 4. Put the cover back. Spout is adjustable to guide aroma into desired direction. Bamboo Essential Oil Diffuser must NOT be operated without the cover.
- 5. Connect AC adaptor with power from wall socket.
- 6. Press the "MIST" button to select the time of use as needed(ON continuous/3 hours/6 hours spray). The diffuser will automatically turn off at the specified time. To turn off immediately, long press the "MIST" button.
- 7. Press "LIGHT" to switch on LED light. Brightness is adjustable through the following cycle(Bright-Dim-Off).
- 8. It is recommended to drain water from tank and keep dry for extended idle period.
- 9. When connecting with power, the original state of Ultrasonic Diffuser is still off.
- 10. Misting operation and light will switch off automatically when there is insufficient water, even press "MIST", Aroma Diffuser is also switch off automatic.
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