Analysis On Window Dressing Of Hunan ZR Agricultural Science And Technology Development Co.,Ltd

Developing the multilevel capitalized market is the inner requirement for reforming the financial supply system of China and transforming the development mode of China.Under the existing conditions,indirect financing,represented by bank loans,cannot provide funding for enterprises with their long-term research and development.Developing the equity investment market can solve this problem better in a certain degree.When facing the equity financing,the investors always tend to choose listed companies with stable economic development and the small and micro-enterprises are therefore ignored.The current listing system mainly focus on listed companies' performance review in the past,rather than the future cash flow expectations,which results in difficulties for small and micro-enterprises to finance in the main market.Developing regional equity trading market has increased new ways for small and micro-enterprises with their financing,thereby enhancing the financing selecting capacity of small and micro-enterprise.The main tool used for financing in the equity trading market for small and micro-enterprises should be issuing more stocks or increasing the capital to issue more stocks,rather than using private bonds or bank credit.The premise of increasing the capital and issuing more stocks is that some people are willing to invest,which has brought requirements for the company's value assessment and the company's information disclosure.Despite the frequent occurrence of fake financial statements in recent years,the financial fraud scandals of listed companies have been endless,but there is little literature to study the accounting statements of regional equity trading market.In fact,there are different degrees of opportunistic actions such as fake financial information when listing small,medium and micro-enterprises,resulting in the hesitation of equity investors and growth in the cost of regional equity trading market.Making the financial statements exposed by these enterprises meet their authenticity and fairness,as well as letting people find the authenticity of the information from the data published in the financial statements is the key of enhancing the efficiency of the use of corporate accounting statements and the base of a healthy multi-level market development.This paper studies ZR Agricultural Science and Technology Development Co.,Ltd as a case,collects the relevant data in the company's financial statements,in order to analyze the approaches of financial fraud:increase the income and assets and set other unreasonable receivables notes and the like,which has cleared the motivation of the financial statements fraud and further studied the impact of the financial statements fraud on the company value,which to a certain extent,increased the information screening costs of the company for the equity investors.At the same time,some revelations are gained on avoiding the financial statements fraud in China's regional equity market:financial statement is not the only basis of reference for the level of investment income;in the meantime,it is hoped that the regulatory department increases the degree of punishment for faking financial statements;the government should vigorously support small,medium and micro-enterprises.