Category: Money Tips Date: 2007-05-16
The financial statements reflect the company's industry in the natural, competitive and operational management, the company's management arrangements or if interested in them meet the criteria for adjustments, investors may turn it into making wrong judgments. Investors only identify the type of "trap" in order to accurately forecast earnings.
To costs and expenses, for example, with the costs and expenses related to financial "trap" has the following categories:
A different classification of costs between projects change. While the corporate financial accounting system on the costs and fees have a more clear distinction between, but some projects are still classified as a certain degree of flexibility. Such as sales discounts, and some of its listed companies as a separate project, while some listed companies to be classified as cost of sales as an input to distributors or retailers of the sales commission. The kinds of changes in classification will lead to cost ratio of non-recurrent fluctuations. In addition, in between selling and administrative costs, there are some classification differences, such as the sales office rent and depreciation expenses, and some listed companies to be classified as administrative costs, and some of its classified as marketing expenses. If the listed company's classification changes, then the expense ratio corresponding changes will also occur.
2, advertising and trademark usage fees. For their own brand names of listed companies, the cost of its advertising policy changes are mainly: The cost of advertising as a revenue expenditure will be included in the current period cost of sales, or advertising expenses as capital expenses amortized. Such policy changes on a larger consumer advertising expenses related companies a significant influence. For the use of the controlling shareholder of listed companies in terms of brand, a situation is the controlling shareholder to pay current advertising costs, while the listed companies in accordance with its sales of branded products to draw a certain percentage paid to the controlling shareholder as a trademark the use of fees; the other is listed In addition to trademark the company to pay royalties, but also pay the current cost of advertising. The first case, overestimated the current profit, the latter situation is an underestimation of the current profit.
3, interest charges. With the controlling shareholders of listed companies and non-owned subsidiary of contacts between the large amount of money, in general, listed companies to raise funds through capital markets, capital is more readily occupied by the controlling shareholder of listed companies, capital is more common. For the occupancy of money, some listed companies do not charge money occupation fee, occupation fee for the collection of funds of listed companies, its expense ratio charged there are differences. If the listed company associated with the cost of funds used between the huge interest charges are charged a tremendous impact on current profits. In addition, the capitalization of interest charges are often used as a reduce costs and increase profits means.
Identification of listed companies set up financial "trap", the main must pay attention to related parties and related party transactions. For listed companies in the analysis, to understand the situation of the company's controlling shareholder and corporate-owned subsidiary of the situation, to understand the controlling shareholder of the holding ratio of listed companies on the importance of controlling shareholders, the controlling shareholder, as well as other assets owned by the controlling shareholder of the their financial situation. For the subsidiaries, to understand the percentage of stock held by listed companies, subsidiaries and parent companies, as well as the correlation between the various subsidiaries, subsidiaries of the parent company sales and profits, as well as the contribution of the income tax rate and a subsidiary of stage of the implementation of the concessionary duty rate.
In understanding the relevant related parties, the need for the types of transactions between related parties to make a detailed understanding and in-depth analysis. In particular, a large quantity of these transactions, the exchange revenues generated large transactions, as well as the pricing basis of related-party transactions and pay special attention to the means.
