False statements can be said is the biggest fraud tactic. How to fake accounting statements, this writer did an in-depth analysis.

    The accounting statements whitewashing in China is quite common, medium-scale collapse of the letter, Zhuzhou colored huge loss, Joan China source events, and more recently in the founding group of banks were taken over in Hainan, Guangdong International Trust and Investment Corporation was closed, are exposed from one side of the accounting statements of whitewash serious. Accounting statements whitewashing very harmful, not only to mislead investors and creditors to enable them under the false financial information to make wrong judgments and decision-making, but also lead to the Government and other regulatory agencies, so that regulators can not be timely discovered to prevent and resolve groups and agencies of financial risk.

    In view of this, this article was to explore the motives of window-dressing financial statements, type, common tools and to identify, and use it as the basis on how to improve China's accounting standards in order to curb excessive corporate accounting statements whitewashing and packaging a number of proposals.

    Accounting statements whitewash the motivation

    1. In order to assess the cosmetic results of the accounting statements

    Enterprises operating results, its assessment methods, generally based on financial indicators, such as the profits (or losses) project completion, the investment rate of return, output value, sales revenue,????????state-owned assets, asset turnover, sales margins, etc. are an important evaluation indicators of business performance. These financial indicators are related to accounting data. In addition to internal assessment, the external examinations, such as industry, rating, also based mainly on sales revenue, total assets, total profits determined.

    Business performance assessment, not only to enterprises involved in the...