Research On The Problem Of Financial Restatement

The financial report as the description of a firm's financial condition is the only link between the company's internal management and external stakeholders and also the carrier that external stakeholders use to make the relevant decision-making,so the financial report authenticity are very important.The essence of financial restatement system is to to obtain more accurate financial information for information users by correcting the errors.However,the recent financial restatements had became a reasonable approach to the company's management to conceal the bad news,which aggravated the non-authenticity of financial reporting information and question about the truthfulness of financial reports of listed companies,then how to solve the financial report restatements deviate from essence has become a focus.This paper points out the financial restatement of Listed Companies in our country had the problem as the following:nonstandard content,universal regulation of earnings,non-perfection of China's relevant legal system,non-perfection of supervision,the internal control,the ownership structure and investors does not attach importance to the financial restatement,and put forward five aspects of the rectification measures after reading the restatements.At the same time,choice the Taiyuan Chemical Industry Co.Ltd as case studies.This paper collected the financial restatement of Listed Companies from 2010 to December 2016,the analysis of the data are closer to the reality.Based on the data analysis and classification,the existing problems and the control measures are practical and reasonable,and through the case evidence to deepen practical of this research.At last,hoping that the measurement can play the role of financial restatements phenomenon in China.