Accounting Supervision Report Of Listed Companies Annual Report: 30% Companies Frequent Simple Mistakes (1)

In 2013, the annual accounting supervision report of listed companies was released. The report shows that as of April 30, 2014, there were 2537 1 listed companies in Shanghai and Shenzhen two cities. Apart from 3 companies failing to disclose their annual reports on schedule, the other 2534 reported their annual reports in 2013, including 1436 main board, 719 small and medium board, 379 enterprises.

Listed companies can better understand and implement enterprise accounting standards and related information disclosure requirements. However, some companies still have problems such as the interpretation of new accounting standards and the ineffective interpretation of information disclosure, inadequate disclosure of accounting professional judgment and simple information disclosure.

The report also pointed out that the construction and implementation of internal control in listed companies has been steadily promoted in 2013. The readability, comprehensibility and usefulness of information in the internal control evaluation report have been significantly improved, and the effectiveness of internal control audit related to financial reporting has been improved.

However, we still find that there are some problems in the internal control evaluation report and the internal control audit report, which need further attention and improvement by listed companies and certified public accountants.

The following is the full report:

I. overall situation

As of April 30, 2014, there were 2537 1 listed companies in Shanghai and Shenzhen two cities. Apart from 3 companies failing to disclose their annual reports on schedule, the other 2534 reported their annual reports in 2013, including 1436 main board, 719 small and medium board, 379 enterprises.

(1) general situation of financial information disclosure

Generally speaking, listed companies can better understand and implement enterprise accounting standards and related information disclosure requirements. However, some companies still have problems such as the interpretation of newly issued accounting standards and inadequate interpretation of information disclosure, inadequate accounting professional judgment basis, and simple information disclosure errors. The main findings are as follows:

One

Simple mistakes in Information Disclosure

　　在抽樣審閱的415家上市公司財(cái)務(wù)報(bào)告中，有131家存在財(cái)務(wù)信息披露的簡(jiǎn)單錯(cuò)誤，占抽查公司的31.6%，主要簡(jiǎn)單錯(cuò)誤包括以下四種類型：(1)報(bào)表項(xiàng)目列報(bào)不當(dāng)，主要涉及項(xiàng)目流動(dòng)性列報(bào)不當(dāng)、符合資產(chǎn)定義的項(xiàng)目列報(bào)為負(fù)債負(fù)數(shù)等問(wèn)題;(2)報(bào)表之間、報(bào)表與附注或輔助信息之間矛盾，數(shù)字前后不一致或者表述存在差異，如某公司年末持有大額外幣，但現(xiàn)金流量表中“匯率變動(dòng)對(duì)現(xiàn)金的影響”一欄的金額卻為零;(3)簡(jiǎn)單數(shù)據(jù)錯(cuò)誤和數(shù)目計(jì)算錯(cuò)誤，包括報(bào)表串行、正負(fù)號(hào)出錯(cuò)、數(shù)量級(jí)和計(jì)量單位錯(cuò)誤等;(4)年報(bào)目錄或附注索引序號(hào)混亂，前方引用的索引序號(hào)實(shí)際不存在或者為不相關(guān)內(nèi)容，編號(hào)順序錯(cuò)亂，附注僅列示標(biāo)題而無(wú)內(nèi)容說(shuō)明，年報(bào)目錄中缺失財(cái)務(wù)報(bào)表章節(jié)等。

These simple mistakes reflect that some listed companies are not strict and serious in disclosing their financial information, which affects investors' correct understanding of financial reports, and reduces the seriousness of public disclosure of financial information.

2., the information disclosure standards are not strictly enforced, and the information disclosure is not sufficient.

Some listed companies did not strictly enforce the requirements for information disclosure explanation such as government subsidies and the sale of financial assets.

For example, for a large amount of government subsidy that is lump sum into profits and losses, some companies do not specify the basis for identifying it as a government subsidy related to income and without amortization.

Some listed companies are not fully disclosed for the construction contract, and do not specify the specific information of a single major contract according to the requirements, nor specify the method for determining the completion schedule of the contract.

For some listed companies with significant liquidity risk

(liquid assets far less than its current liabilities), especially the ST listed companies with continuous losses, did not disclose the measures to deal with liquidity risk in the notes to the financial statements as required, or did not prepare the basis for financial statements in accordance with the basis of continuous operation.

There are also some companies whose "foreign currency statement reconciliation" and "exchange gains and losses" and other items have an important impact on the financial position and operating results, but have not fully disclosed the accounting policy on foreign currency conversion.

Adequacy and integrity are also the quality characteristics of financial information. However, some listed companies do not strictly enforce the requirements of information disclosure standards, and lack of integrity in providing financial information, which can not fully meet the needs of investors.

3. accounting policy disclosure is formalistic and not targeted.

The principle of accounting treatment in the current principle oriented accounting standards is also a principle clause, which is widely applicable to all kinds of economic businesses.

The listed companies must choose the specific accounting policies that are suitable for their actual production and operation characteristics according to the principles and principles of the guidelines, otherwise it is difficult to provide investors with financial information that is conducive to their investment decisions.

However, the annual report analysis found that some accounting policies disclosed by some listed companies still copied the principles of accounting standards and did not reflect the business characteristics of enterprises.

For example, the accounting policy of some internal pharmaceutical companies to capitalize the internal research and development expenditure is not only based on the principle of intangible assets accounting principles, but also does not disclose personalised disclosure according to its own business mode, so that users can not understand the company's R & D process and its main stages, so that it is impossible to reasonably judge whether the capitalization of R & D expenditures is appropriate.

Some companies engaged in diversified operations do not provide sufficient and effective information to investors for the provisions of the accounting policy of the revenue recognition.

4. disclosure of professional judgements related to key accounting processes is inadequate.

(1) disclosure of judgement on control is inadequate.

Control is the basis for determining the scope of consolidated financial statements. Whether the company's judgment of control is appropriate will directly affect the financial position and the accuracy of the results reflected in the consolidated financial statements.

The annual report analysis found that some companies did not fully disclose the basis for the formation of control when defining the scope of merger, or disclosed only the seats occupied by the board of directors of the invested units. They did not make specific explanations for the specific circumstances of the power organs, board of directors, voting mechanism of the board of directors and other shareholding ratios of the invested units.

(2) inadequate disclosure of goodwill related information.

Goodwill originates from the merger of enterprises under the same control. According to the requirements of the standard, whether or not there is any sign of impairment, the consolidated goodwill should be tested every year.

In the annual report analysis, it was found that some companies did not prepare for the impairment of goodwill and did not disclose whether they had passed the impairment test; while some companies disclosed the impairment test on goodwill, but did not disclose the detailed information of the impairment test according to the requirements, including the determination process of the recoverable amount, the choice of parameters and the basis of the discount rate, which led investors to not know whether the company's goodwill was impaired or not, and whether the basis for impairment provision was adequate.

(3) the disclosure of relevant information on stock payment is inadequate.

At present, there are more and more listed companies implementing equity incentive plans. The impact of equity incentives on the company's financial position and operating results is also significant. According to the relevant information disclosure requirements, the company should disclose the method of determining the fair value of equity instruments granted on the grant date.

According to the annual report analysis, some companies did not disclose the method of determining the fair value of the rights and interests granted to the granting date. Some companies even misunderstood the fair value of the option and equated the exercise price of the stock option with the fair value of the option.

Due to the fair value of equity instruments directly affects the overall cost of equity incentive, inadequate disclosure will make investors unable to fully understand the impact of equity incentive plans on the company, nor can it be judged whether the relevant fees recognized in the current period are appropriate.

(two) general situation of financial report auditing

According to the overall situation of the annual report, 2486 companies listed in 2013, except three companies, have disclosed the audit reports of financial reports on time in April 30, 2014 before April 30, 2014.

From the perspective of audit opinion types, there were 2402 standard opinions audit reports and 84 non audit reports, accounting for 96.6% and 3.4% of the listed companies' audited reports respectively, which accounted for almost the same as in 2012.

Compared with last year, when the number of listed companies did not change significantly, the total number of reports on non-standard opinions was reduced by 4.

Among them, there were 9 reports of reservations and audit reports that could not be expressed. The audit reports with unqualified opinions with emphasis on matters were reduced by 13, and there was still no negative audit report.

From the specific content of non-standard opinions, there are 39 listed companies which have been issued non-standard opinions due to major doubts about their ability to manage their business, accounting for 46.4%. This shows that some listed companies still have a higher risk of continuing operation.

Other non-standard opinions mainly focus on the major uncertainties of listed companies, the identification of major assets and liabilities, and the effectiveness of internal control.

For example, 13 listed companies have been issued non-standard opinions by registered accountants because of the uncertain impact of illegal activities on the financial statements, and 8 listed companies have been given reservations or negative opinions due to their internal control is imperfect.

(three) overall situation of internal control information disclosure

According to the circular on the classified and batching implementation of the internal control standard system of listed companies on the main board in 2012 (Finance Office [2012]30) (hereinafter referred to as the "classified implementation notice"), a total of 1052 listed companies of the main board were included in the implementation scope of the internal control standard in 2013, accounting for about 73% of all listed companies on the main board.

Among them, there were 204 new implementation areas in 2013, and the implementation scope in 2012. In 2013, there were 5 listed companies that failed to disclose internal control evaluation reports and internal control audit reports due to delisting or major asset restructuring.

According to the regulations, the listed companies that incorporate the scope of the implementation of the internal control standards shall disclose the internal control evaluation report and the internal control audit report while disclosing the 2013 annual report.

As of April 30, 2014, 1049 2 listed companies had disclosed internal control evaluation reports and internal control audit reports in accordance with the regulations, and 3 companies failed to disclose in a timely manner.

From the internal control evaluation report, the results of the internal control evaluation report of the 1 companies are invalid and there are significant defects in the non financial report of the internal control evaluation report. The 4 company's internal control evaluation report concludes that the internal control of the financial report is invalid, but there are no major defects in the non-financial report. The 8 companies' internal control evaluation report conclusions are effective in internal control of financial reports, but there are significant defects in the non financial reports. The internal control evaluation reports of the 6 companies do not have clear internal control evaluation conclusions. The conclusion of the other 1033 companies' internal control evaluation reports is effective internal control of financial reports and there is no major flaw in the internal control of non-financial reports.

From the internal control audit report, 9 companies were issued negative opinions by accountants, 8 companies were issued unqualified opinions with major defects in internal control of non-financial reports, 30 companies were issued unqualified opinions with emphasis, and 1005 companies with standard unqualified opinions were issued.

Two. Implementation of major accounting standards

(1) merger of enterprises

Accounting issues related to mergers and acquisitions have always been the accounting standards.