The Research On Financial Restatements Of *ST Bo Yuan

Financial report is China’s listed companies for disclosure of financial information is an important way,is also related to the users of the financial information for correct investment decision and the relevant regulatory authorities of supervision on the basis of the most important. In recent years, China’s listed companies occurred financial restatements phenomenon has become frequent, many involved in the industry, repeat content range wide, is most of the company’s operating profit related. Financial restatements shows the major omissions or errors exist in previous annual disclosure of the financial report,but also enable investors to the accounting information authenticity questioned. The intention of financial restatements system of our country is in by provide more accurate and perfect, real property Provided information to reduce information asymmetry in the capital market. Now, however, more enterprises in order to pursue their own interests as the legalization of major accounting error correction method,seriously affects investor’s interests, affects the capital market’s healthy development. Thus, financial restatement of existing problems, strengthen supervision and regulation of financial restatements has certain practical significance.The method of combining normative research and case studies, reviews the domestic and foreign scholars relevant literature of financial restatements study based on,introduced the related theory of financial restatements, according to China’s Listed Companies-- Zhuhai Bo Yuan Investment Co., Ltd. the case, carries on the elaboration to the nearly five years of financial restatements situation. Through the analysis of the *ST Bo Yuan governance status, internal control, external audit deficiencies, trying to dig the real reason behind the financial restatement and restore its true financial position, in order to can enough of China’s listed companies to issue financial restatements improvement to provide some suggestions further Improve the accounting information disclosure, and promote the healthy development of China’s capital market.Financial restatement bring adverse economic consequences, but also seriously affect the healthy development of the capital market and protect the benefit of investors. Through the study found *ST Bo Yuan equity structure unreasonable, the board of directors and weak supervision, the board of supervisors function of fiction, the independence of independent directors is not strong, the existence of internal control defects of internal governance such as imbalance is caused by the internal motivation of financial restatement, information asymmetry, market supervision and fatigue and pressure, illegal low cost and financial restatement of law and regulations is not perfect, and is caused by external motivation of financial restatement. Produced by a combined with the case of financial restatements reasons and problems, in order to reduce the non legal financial restatement From the ownership structure, market supervision, corporate governance, financial disclosure standards and measures, such as the disclosure of measures and suggestions.