The Three Levels Of Accountants' Height: Which Stage Are You In?

Never make accounting positioning too simple. Sometimes, it is so tall! Where are you at?

The first level: accounting choice, bachelor degree, auditor must master.

The main feature of this accounting game technique is the abuse of accounting options, including accounting policy and accounting estimation options, especially accounting estimation options. Common practices include capitalization of earnings expenditure, early (delayed) recognition of revenue, delayed (early) recognition fees, more (less mention) asset impairment preparation, and more (Shao Ti) long term assets.

(amortization fee), multi mention (less mention) estimated liabilities (prepaid expenses), this accounting method has a higher level, because by manipulating profit and loss and assets and liabilities through books, there will be gaps in cash flow, and smart financial analysts are likely to show game traces through vertical and horizontal analysis. For example, financial analysts find that the value reduction, depreciation rate, receivables turnover rate, inventory turnover rate and estimated accruals account for a larger fluctuation. If an effective securities market is used, this accounting method is virtually ineffective.

The second realm: optimizing accounting standards, master level, project managers must master

The main characteristics of this accounting game technique are drilling accounting standards loopholes, or accounting standards are not regulated, or accounting standards are contradictory or vague. At present, accounting practice in China's listed companies has encountered many similar accounting problems. Accounting standards lag behind accounting practice to some extent, which provides accounting players with profit manipulation space. For example, the current merger of enterprises and the accounting treatment of BOT, Enron also makes full use of the defects of accounting system in the accounting treatment of derivative financial instruments, confirms huge profits and pfers huge losses.

Although it is easy to find these accounting problems, there is no alternative. For accounting players, such accounting games are easy to be found, but they are not subject to illegal accusations.

The third realm: form is more important than substance, doctoral level, partners must master.

The main feature of this accounting game is that form is more important than substance. Enron's main accounting game technique is to make use of the accounting regulations that can not be combined with SPE under specific conditions, and create some surface conditions artificially to make them conform to the "non form" conditions. In essence, it is necessary to safely control these SPA.

There are many such cases. The most common thing is the knock off deal. I sold it to you, and you sold it to me. You have sold assets and profits to each other. There are two ways to abuse accounting standards. One is to create conditions to cater for the accounting standards to apply the accounting rules, such as Enron's SPE.

One is to create conditions for evading accounting standards. For example, it is a related party paction. In order to avoid accounting and disclosure of related party pactions, people have gone through a bridge company, so that the related pactions are not related.

Because of the organized and paction arrangement, it is difficult for the accounting game to find game traces directly from public information, but it may also bring some financial guidance. It is found that this game only begins with strategic analysis and value chain analysis, finds abnormal financial information from non-financial information, and requires the discoverer to have rich experience and industry experience.

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