乐生活"Shanghai Stock Exchange: Question Tips for the Quality of Financial Information in 2018 Annual Report"
Firstly, the performance of some companies may be mixed with water, and it is difficult to verify each other with their own business model and industry development. The outstanding performance is that gross margin is abnormally high and sales expenses increase abnormally compared with other companies in the same industry.
Second, the value of fixed assets of some companies may be false high, which is in contradiction with their actual use status and output efficiency. For example, the growth rate of assets greatly exceeds the increase of production capacity, and the unit investment of similar products far exceeds the industry average.
Thirdly, some companies tend to regard impairment of assets as a "dessert box" of follow-up performance. It is arbitrary to change the policy of bad debts accounting, and may even take advantage of "big bath" of impairment of goodwill.
Fourth, the phenomenon of improper earnings management by individual companies using accounting standards still exists, such as changing the scope of merger of companies through voting power delegation or agreement arrangement, under the condition that the proportion of shareholdings remains unchanged.
