Smith Smith Apparel For Financial Fraud

Recently,

Bogged down in financial fraud and concealment of stock, in the two tier market, from October 12th to November 22nd, the price of US bond apparel fell by 32.2%, and it still could not escape the influence of "false account gate".

Tang Wei, a well-known public interest litigant known as "China's little ant", told reporters that the financial data disclosed by the US state clothing did not conform to the accounting standards and seriously hurt the interests of investors. He appealed to the SFC and its dispatched agencies to conduct a thorough investigation of the US state dress and give investors an account.

Reporters tried to contact the head of the United States costumes, but no one answered the phone.

As early as 2009, the United States was accused of stock up to 900 million.

In 2011, the annual report revealed that there were 2 billion 560 million yuan in inventory.

This year's half year report has changed to 1 billion 750 million yuan.

While the United States has digested 800 million yuan inventory, the media reported that Zhou Chengjian, the chairman of the board, controls 317 million of the purchase of AI sang bang, and Zhou Chengjian's relatives also contributed two thousand to about thirty million inventory.

The report questioned Metersbonwe franchisee's operation status, revenue recognition principle, inventory changes and reasons for personnel changes.

Reported that the U.S. state clothing on the same day the emergency suspension and issued a long self certification innocence.

In the announcement, the United States said, "it is impossible for the company to carry out the ERP outgoing and affirming income, and it is even impossible to have the so-called" gloss over the beautiful report forms ". For this statement, the financial personnel who are familiar with all kinds of financial systems say that whether the SAP system commonly used by multinational companies is also the ERP system used by the US state, there are artificial adjustment parts.

Share price fell more than 30%, the market value has shrunk by 25 billion 300 million over the past two years.

Since the "fake account gate" incident in October 12th, the price of American bond has been falling all the way.

On the same day, the United States opened 18.29 yuan, while the closing price in November 22nd was only 12.40 yuan, or 32.2%, and the market value shrank by 5 billion 918 million yuan.

Looking back, compared with the highest price in November 30, 2010, the price of Smith Barney's clothing dropped by 68.70% and the market value shrank by 25 billion 302 million yuan, compared with 39.57 yuan.

Litigants appeal to the SFC to investigate and safeguard the interests of shareholders

For the issue of income recognition, public interest litigants

According to the relevant provisions of the accounting system, enterprises need to meet 4 conditions when they sell goods, so that they can recognize the income: the enterprises have pferred the main risks and rewards to the buyers; the enterprises have not retained the right to continue to be connected with the ownership, nor have they implemented the control of the sold goods; the economic interests related to the paction can flow into the enterprises; the relevant income and cost can be reliably measured.

Tang Wei pointed out that the United States did not meet the first condition of sales revenue recognition, and whether the pfer of commodity ownership was doubtful.

"Let's say a common sense understanding, we go to an electrical home shopping mall to buy an air conditioner, and the store opens a warehouse receipt. We say that delivery is good. If there is no real customer to pick up the store, or deliver it to the buyer's home, if the mall is on fire or for other reasons, although the store's shipping documents have been issued, the mall has also made sales revenue, but as long as the goods are still in your shopping malls, the so-called sales revenue is not established."

In addition, Tang Wei pointed out that after this incident, the price of Smith Barney's clothing has dropped sharply, which is unfair to shareholders and shareholders.

In view of the management of Smith Barney clothing, Tang Wei said that the management of the company should give more convincing explanations, which should be compensated for the heavy losses caused by false statements.

However, Tang Wei particularly emphasized that the court's acceptance of false statements in civil compensation cases of listed companies should be investigated by the SFC and its dispatched offices, and the decision of effective punishment should be made.

Therefore, he suggested that the SFC's dispatched agencies should make an investigation into the misrepresentation of the US state dress and make a public survey of the whole society, otherwise it would be unfair for investors who suffered losses due to their false statements.

"For the legitimate rights and interests of the Chinese shareholders, and for the healthy and healthy development of China's stock market, the function of the Securities Association of China is to supervise and regulate the behavior of listed companies. If the counterfeit behavior of financial data such as the state of the United States can be so grand, it is highly unfair to investors."