< p > < strong > 1., whitewash < a href= "//m.pmae.cn/news/index_c.asp > > business performance < /a > /strong > /p >

< p > profit maximization. This type of accounting statement is especially evident in the year before the listing and in the year of listing.

Typical practices are: early recognition of revenue, delay in carry over costs, loss accounting, asset restructuring, and related pactions.

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< p > profit minimization. When enterprises fail to meet their business objectives or listed companies may lose three consecutive years and face delisting, it is no wonder that this type of accounting statement is whitewashed.

Typical practices are: postponing recognised revenue, carrying forward costs in advance, and pferring prices.

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< p > balance of profits, enterprises often use this type of accounting statement to whitewash the image of a blue chip stock or get a higher credit rating.

The typical practice is to adjust profits through other accounts receivable, payable, prepaid expenses, deferred assets and prepaid expenses, and carefully plan the steady growth of profits.

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< p > profit cleaning (also known as a huge write off). When a company changes its legal representative, the new legal representative often uses this type of accounting statement to clear up or shirk responsibility.

The typical practice is to deal with the so-called fictitious assets such as bad debts, inventory backlog, long-term investment losses, idle fixed assets, pending current assets and pending fixed assets.

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< p > strong > 2. whitewash < a href= "//m.pmae.cn/news/index_c.asp >" financial situation < /a > /strong > /p >

< p > overestimating assets. When foreign investment and shareholding restructuring, enterprises tend to overestimate assets in order to obtain a larger share of equity.

Typical practices are making up the reasons for asset appraisal, fictitious business pactions and profits.

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When p underestimates liabilities, when an enterprise loans or issues a debt, it usually has a desire to underestimate debt in order to prove its low financial risk.

Typical practices are: accounts outside accounts or liabilities concealed in affiliated enterprises.

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< p > > strong > 3. < a href= "//m.pmae.cn/news/index_c.asp > > accounting statement < /a > the motivation of whitewash determines the type of accounting statement whitewash < /strong > /p >

< p > based on performance appraisal, obtaining credit funds, issuing stocks and political purposes, accounting statements are generally used in the form of profit maximization and profit equalization. Based on the purpose of paying taxes and shirking responsibility, accounting statements are generally dressed in the form of profit minimization and profit cleaning.

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< p > for state-owned enterprises and listed companies, the most harmful accounting statements whitewash is the maximization of profits, that is, the so-called surplus profits and losses, and concealment of liabilities.

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