China MoF urges crackdown on irregularities in listed companies' accounts

SHANGHAI (AFX-ASIA) - The Ministry of Finance has issued an announcement urging local financial departments to curb irregularities in the accounts of listed companies, Shenzhen's Securities Times reported.

	    According to the report, the ministry said financial departments must not allow companies to get away with publishing falsified financial statements, and should carry out clear investigations in such cases.

	    It said companies must strictly follow MoF rules on the retroactive adjustment of accounts to make provisions for depreciations for fixed assets, invisible assets, projects under construction and trustee bank loans.

	    Companies which have already published their 2000 annual reports, and whose retroactive provisions had an important impact on their financial 

position and performance, should issue an explanation of what they have done.

	    For companies which should have made retroactive adjustments but have not, relevant individuals should be held responsible in accordance with the Accounting Law, it said.

	    The report also cited a ministry official as saying that companies which booked debt write-offs as income in their 2000 reports will be punished.

Related stock : (NIL)