An Analysis For The Window Dressing Of Financial Statement Of Chinese Listed Companies

The window dressing of Chinese listed companies has become a severe phenomenon. With the issuing of Accounting Principles in recent years, the distortion in accounting information occurs in some new modes, which not only hurts the investors'interests but also destroys the order of the whole security market. So it's of significant meaning for protecting the investors'interests, strengthening security supervision, and accelerating the development of security market to study the window dressing measures of Chinese listed companies and analyse its essence.The thesis consists of five parts. The first part introduces the definition of window dressing and makes a summarization of relative theories both domestic and overseas. The second part puts much effort on the typical ways Chinese listed companies use in window dressing. The third part synthetically concludes the motivations and conditions of window dressing of Chinese listed companies. With this understanding, the fourth part puts forward the methods to detect window dressing, and the fifth part proposes the countermeasures to reduce window dressing and regularize the security market.The thesis concludes that the measures used in window dressing by Chinese listed companies are related party transactions, accounting estimation, equity investment, asset recombination, deferred assets, etc. The motivations of window dressing are performance evaluation, obtaining loans and business credit, issuing stock to public, reducing tax payable, etc. The conditions of window dressing are the asymmetry of information between management and investors, weakness of internal control, unsubstantial external supervision, etc. The methods of detecting window dressing are industry background analysis, overall analysis of financial statements and the analysis of specific accounts. The thesis provides such suggestions to eliminate window dressing in...