SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: Jurgis Bekepuris3/28/2011 11:31:46 PM
   of 78802
 
A number of Chinese RTOs that have filed 10Ks with clean accountant sign-off, have admitted in 10K that their internal controls are materially deficient. Deficiencies are specified as some variant of the following:

... internal accounting department has primarily engaged in ensuring compliance with PRC accounting and reporting requirements for our operating affiliates. As a result, our current internal accounting department responsible for financial reporting of the Company, on a consolidated basis, is relatively new to U.S. GAAP and the related internal control procedures required of U.S. public companies. Although the Company’s accounting staff is professional and experienced in accounting requirements and procedures generally accepted in the PRC, management has determined that they require additional training and assistance in U.S. GAAP matters

This can be interpreted in a number of ways:

- Shorter: These are frauds, this is a new attempt to cover the fraud.
- Cynical: What are they doing on US exchange for X years if they don't have GAAP trained personnel? How can we rely on their previous or current fillings?
- Neutral/positive: Companies have not realized they were lacking in this before. Now they see and admit this as an issue. Some of them hired outside consultants to fix current fillings. They plan to hire inside GAAP trained personnel for 2011. The internal controls will be improved over 2011 and everything will be great.

You can pick the one you like. :)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News