How Do Investors Monitor Corporate Finance?

< p > < strong > fund supervision < /strong > /p >

< p > (1) raising funds < /p >

< p > when an enterprise intends to implement the following fund-raising activities, it shall be reported to the Commissioner or the regulatory body separately: < /p >

< p > 1, adopting absorption and merger and other means of financing, leading to changes in the structure of capital stock of enterprises, prior to approval by the regulatory authorities, and then submitted to the shareholders' meeting for approval.

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< p > 2, the acceptance of non monetary capital investment must be assessed by the asset appraisal institution and confirmed by the regulatory authorities in conjunction with the state level departments at the same level.

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< p > 3, and raising funds by way of assets mortgage. The wholly owned enterprises should be reported to the regulatory authorities regardless of the size of the account. The listed company's absolute amount exceeds the net assets of 5%, and the non-listed company exceeds 2% of the net assets. Before the approval of the shareholders' meeting is approved, the regulatory authorities shall obtain the consent of the regulatory authorities. If the listed company has a net assets of less than 5%, non-listed company's assets mortgage loans under the net assets of less than 2% shall be decided by the board of directors of the enterprise and reported to the regulatory authorities for the record.

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< p > (two) capital > /p >

< p > without the approval of the shareholders' meeting, the enterprise shall not alter the structure of the capital at will.

The increase or decrease in the capital of the enterprise, the increase or decrease of the capital reserve fund in the financing and statutory revaluation, will make up for the change of the surplus reserve fund caused by the loss, etc., and shall be submitted to the shareholders' meeting for approval after the consent of the regulatory authorities.

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< p > (three) consumption fund < /p >

< p > the use of various consumption funds in a holding enterprise shall prepare a project budget and expenditure plan, which shall be examined and approved by the board of directors and submitted to the supervisory department for record. The project budget and expenditure plan of a wholly owned enterprise shall be submitted to the regulatory authorities for examination and approval.

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< p > (four) operating capital < /p >

< p > enterprises should compile funds operation budget quarterly according to production and operation, fixed assets investment, external investment and Living welfare, etc., and plans for the use of major funds of enterprises should be reported to the regulatory authorities for record.

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< p > (five) other < /p >.

< p > regulatory authorities, in order to ensure the interests of investors and enterprises and create a favorable environment for the development of the industry, when supervising the financial behavior of enterprises, any department or unit must charge the company to collect fees, fines and apportionment. It must be reviewed and signed by the special commissioners. No legal basis, standard fees, fines and apportionment can be paid to the enterprises. In order to ensure the safety of enterprise funds, there is a right to require the enterprises not to pay the cash (including checks, bills of exchange, etc.) for invalid contracts, accounting matters without legal credentials and non compliant procedures.

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< p > < strong > > a href= "http://www.91se91.com/news/index_c.asp" > assets supervision < /a > /strong > /p >

< p > (1) loss accounting, bad debt reserve ratio, inventory valuation method, depreciation method of fixed assets, years and other important accounting policies < /p >

< p > important accounting policies, such as the method of verification of enterprise losses, the extraction ratio of external reserves, inventory valuation methods, depreciation methods of fixed assets, years of life and other important accounting policies, must be examined and approved by the special commissioners. Changes in the financial management system must be changed before the end of the year, and the reasons and reasons for the changes will be explained.

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< p > (two) guarantee < /p >

< p > generally, enterprises are not allowed to provide loan guarantee externally. If they really need to provide security, they should be provided with counter guarantee according to the guarantee law.

The amount of foreign guarantee should be submitted to the regulatory authority for the amount of the guarantee. The total amount of the guarantee exceeds 5% of the net assets. When the non-listed company exceeds 2% of its net assets, it shall obtain the consent of the regulatory body before the approval of the shareholders' meeting is approved. The listed company will be less than 5% of its net assets, and the non-listed company will decide if it has less than 2% of the net assets and report it to the regulatory body for the record.

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< p > (three) foreign investment < /p >

< p > all investment and project investment of wholly owned enterprises shall be submitted to the regulatory authority for approval. The absolute amount of listed companies exceeds 5% of the net assets. The absolute investment of non-listed company exceeds 2% of the net assets. The foreign investment and project investment should be approved by the regulatory body before the convening of the shareholders' meeting. The net assets of listed companies are less than 5%, and non-listed company's investment in foreign investment and investment under 2% of net assets shall be decided by the board of directors of the enterprise and submitted to the regulatory body for archival purposes.

If a single investment of a holding company's non productive fixed assets exceeds 1 million yuan, it must obtain the consent of the regulatory body in advance.

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< p > enterprises must compile investment profit and loss schedule according to the annual projects, reflecting the profits or losses of various investments made by enterprises.

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< p > (four) loss and fixed assets disposal < /p >

< p > the net loss of fixed assets and current assets such as inventory losses, damage and scrapping shall be differentiated according to different situations, such as inventory records, quality appraisal of technical units or audit reports of social intermediary organizations. After examination by the head of the Department and examination by the finance department, opinions shall be submitted to the legal representatives and special commissioners for examination and approval, and shall be included in the profits and losses of the current period. The wholly funded enterprises shall also be examined and approved by the competent financial authorities when the final accounts are approved.

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< p > < strong > < a > href= > http://www.91se91.com/news/index_c.asp > cost > /a > regulation > /strong > /p >

< p > (1) business entertainment fee < /p >

< p > supervise enterprises to establish business entertainment budget and final accounts system and financial audit system, which are actually listed in the control ratio stipulated in the financial system.

The measures and standards for business entertainment expenses formulated by the enterprises shall be reported to the regulatory authorities for record.

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< p > (two) deferred assets < /p >

< p > supervise enterprises to list deferred assets according to the items prescribed by the state and deal with them in stages.

For the expenses related to the pfer of deferred assets, the name, amount and amortization plan of the new project must be submitted to the municipal regulatory authority for approval. The wholly funded enterprise shall also be submitted to the competent financial organ for examination and approval, otherwise, it may not be included in the deferred assets.

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< p > (three) completion of fixed assets accounted for < /p >

< p > supervise enterprises to handle the final accounts of fixed assets in a timely manner.

The completed project that has been delivered but has not been completed and accepted shall be included in the value of the fixed assets according to the provisional assessment, and the depreciation shall be extracted according to the regulations.

The fixed assets that have been delivered as a whole will be accounted for in the fixed assets management of production and operation, whether or not they have completed the final accounts. The interest on loans and the profit and loss of foreign exchange must be included in the financial cost according to the provisions, and they should not be included in the cost of construction projects, nor should they be included in the cost of deferred and deferred assets.

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< p > (four) pending and prepaid expenses < /p >

< p > the prepaid expenses items and standards determined by the enterprises according to the specific circumstances need to be reported to the Commissioner for examination and approval, and reported to the regulatory authorities for the record.

When the difference between the accrued amount and the actual amount is different, the withdrawal standard should be adjusted in time. The amount should be reduced at the end of the year, and the remaining balance should be explained in the annual financial report.

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< p > < strong > income, profit and its distribution < a href= "http://www.91se91.com/news/index_c.asp" > regulation < /a > /strong > /p >

< p > the regulated enterprises should strictly define the revenues according to the company law, the general financial rules of enterprises, the articles of association and other relevant provisions, accurately calculate the profits and implement the profit distribution according to the prescribed procedures.

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< p > supervision and management of the rationality of the realization of enterprise income and profits and the reasonableness of profit distribution after tax.

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< p > < strong > supervision of financial report < /strong > /p >

< p > enterprises should submit financial statements and relevant financial reports to regulatory authorities on a monthly, quarterly and annual basis, and the annual financial statements should also be submitted to the CPA's audit reports at the same time.

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< p > regulatory agencies carry out outgoing audit system for the legal representatives of enterprises.

When an enterprise legal representative leaves office, he must entrust a social intermediary agency with the supervision department to conduct an outgoing audit.

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< p > according to the new accounting law, the chairman of the board of directors, the general manager and the financial personnel of the enterprise are responsible for the authenticity and legality of the financial statements.

In case of falsification, concealment of the real financial situation and operating results, the regulatory body will deal with the responsible persons in accordance with relevant laws and regulations.

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