Simulated accounting statements
“Simulated financial statements” means: based on existing corporate structure of Co, accounting policies, management style, business environment and other factors, the original company’s financial accounting records of the previous year separation, the formation of the independent reality with the joint-stock companies comparability of the financial situation of the financial statements.
Although simulation is widely used financial statements, but as a concept has not been unified understanding. Achieve more consistent is the use of simulation in practice in the financial statements of the features:
1. Assumes that the current structure of the company has actually exists in the report at the beginning;
2. The current accounting policies by the company’s financial statements during the reporting period;
3. Simulation report is not the company’s main financial statements, only the supplementary report of history;
4. Simulation statements include corporate structure, equity position, business conditions and accounting policies;
5. Assume that the accounting statements of the subsidiaries included in the report from the beginning to the implementation of the existing accounting system, if not implemented retroactively adjusted by the accounting system;
6. If the first issue, such as occurred in asset stripping, asset restructuring, divestiture and restructuring according to the preparation of the structure after the previous accounting statements;
7. If the listed company mergers, acquisitions, a large proportion of the asset exchange (or traded), after replacement of the structure can be prepared prior to the accounting statements;
8. “Simulation” actually contains this assumption: the performance of various assets in the production of recombinant human (or replacement of people) is the actual existence of the former company, if the direct-to-market, directly as a source of financial data, if the internal carried forward, then according to the production volume, according to internal price simulation as a source of financial data;
9. Provide information as historical financial statements of the comments.
In particular, emphasis is: Analog financial statements in the “analog” is the historical financial information according to the structure of the reorganized company-wide real shape or diameter, the information must be true based on objective and can be verified.
Preparation of financial statements simulation is based on the assets, liabilities, restructuring and income, expenses, based on dissection, under the restructuring plan in the accounts and statements prepared peel combination of technology. The results disclosed in the financial statements should explain to the parties concerned in the number of the registered capital of three years ago to set up and after three years of production and operation, financial condition and operating results through the changes in the formation of the net assets valuation date.
Simulation is based on financial statements prepared under the guidance of restructuring the accounts of stripping results, not the actual subject of the real accounting books and records, the preparation process to some extent reflected in “picking fruit rope for.”