Which expert talks in detail about how to prevent accounting risks in enterprises? thank you

on enterprise's financial risk and prevention (1)

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Absrtact: Financial risk in international capital flow refers to the objective possibility of capital loss in a specific environment and a specific period. To sum up, it is divided into two parts: first, national risk, mainly including sovereignty risk and political risk; Second, economic and management risks (or commercial risks), mainly including natural risks, foreign exchange risks, interest rate risks, profit risks, tax risks, business management risks and other risks including inflation.

Keywords: accounting standards; Cash flow statement; Financial risk

The financial risk in international capital flow refers to the objective possibility of capital loss in a specific environment and in a specific period. To sum up, it is divided into two parts: first, national risk, mainly including sovereignty risk and political risk; Second, economic and management risks (or commercial risks), mainly including natural risks, foreign exchange risks, interest rate risks, profit risks, tax risks, business management risks and other risks including inflation.

I. Interest rate risk and prevention

Interest rate risk refers to the risk that interest rate changes caused by different types of uncertain factors directly or indirectly cause investment value or income loss.

(1) treasury bill rate risks and prevention. Treasury bonds (also known as non-default bonds) are issued by the state, and there is no problem of bankruptcy and failure to perform. However, treasury bonds also have interest rate risks. The change of market value (present value) of treasury bonds is inversely proportional to the change of market interest rate, and the interest rate risk of treasury bonds with longer maturity is also greater. Therefore, the fluctuation of bond price with the fluctuation of market interest rate actually reflects the existence of interest rate risk. On the surface, it seems that investing in short-term bonds can avoid or reduce this interest rate risk, but it must be noted that investing in short-term bonds will also bear another interest rate risk, that is, "coupon rate risk". Because when investors buy short-term bonds, they must also buy various coupons associated with these bonds. The change of market interest rate has an impact on bond prices and coupons, so interest rate risk still exists. Therefore, investors should choose according to the actual situation. Funds that have no special purpose for a certain period of time can be invested in bonds with appropriate maturity; Funds that need to be used in the near future can be invested in short-term bonds.

(2) corporate bond interest rate risk and its prevention. Corporate bonds also have two kinds of interest rate risks: coupon interest rate risk and price change risk. Corporate bonds tend to have higher interest rates than treasury bonds in order to adapt to their greater risks. The price of corporate bonds changes in the opposite direction with the change of market interest rate. Under normal circumstances, the credit rating of bonds is a direct factor affecting bond prices. Therefore, when buying corporate bonds, investors should first understand the credit rating of bonds, especially the credit rating of newly issued bonds, otherwise they will encounter risks, ranging from reducing profits to bankruptcy. In addition, investors have to weigh the rewards and risks. For the maturity of bonds, investors should try their best to make the maturity date of the bonds they invest coincide with the payment date of cash. Although securities can be discounted before maturity, the discount rate is always higher than the rate of return, that is, the interest rate, which will make the discounter (that is, the investor) suffer losses.

(3) the risk of the company's stock interest rate and its prevention. Company stocks include priority stocks and common stocks, both of which are risky. Except for the fixed amount and time for the cumulative cash dividend payment of the preferred stock with the right to cumulative dividend, the cash dividends of most other non-cumulative preferred stocks may not be paid when the issuing company encounters economic difficulties; As for the cash dividend of common stock, if the company thinks that the profit situation is uncertain, or paying the dividend will bring serious economic difficulties to the company, it can also cancel the payment of common stock dividend. Therefore, the risk of dividend income of common stock is greater than the coupon income of bond. The influence of interest rate risk on preferred stock and common stock is generally reflected from the stock price through the present value mechanism. When investors invest in stocks, on the one hand, they should look at the production and operation conditions of the invested enterprises, and on the other hand, they should compare and analyze the coupon rate of the stocks to be invested with the market interest rate, so as to know fairly well.

ii. profit risk and prevention

(I) profit distribution risk and prevention. Usually, before establishing a joint venture with a foreign country, a clear profit distribution clause should be signed. However, if there is a change in the government or policy of the country, and the new policy is formulated, foreign investors can only occupy a small proportion in the joint venture, which will undoubtedly be a sudden blow to those foreign investors who originally occupied a large proportion (such as more than 5%), and as a result, the profit distribution will be directly affected. In addition, although some countries do not change the investment ratio in this arbitrary way, they also stipulate that the proportion of foreign investment must be gradually reduced within a certain period of time. In addition to these two ways, there are also agreed ways for foreign investors to gradually reduce their equity. Then, in the initial stage of operation, investors should try to use various ways to accelerate capital turnover to make more profits, so that even if the equity ratio is gradually reduced in the future, the original intention of investment can be achieved.

(2) Risk of tax increase on investment profits and its prevention. Adding taxes to the profits of foreign investors will undoubtedly directly reduce their profit income. Among them, withholding tax is typical, which refers to the taxes and fees levied by the host government on royalties or interest paid to foreign investors, such as dividends, trademarks, patents and technologies. For example, an American multinational company can only distribute 7% of its trademark rights in Italy to the American parent company, and the remaining 3% should be paid to the Italian government in the form of tax deduction. Therefore, when making investment decisions, we should consider investing capital in countries that have not levied this special tax. If this special tax is imposed suddenly, unless the investment in this country is particularly profitable, we can consider gradually transferring capital outward until it is withdrawn. In addition, international tax avoidance can also be adopted.

(3) Risk of profit remittance and its prevention. The typical risk of profit remittance is foreign exchange management, which can be divided into loose foreign exchange management and strict foreign exchange control. For example, developed countries generally require that when remittances go abroad, they must report to the banking department if the amount exceeds a certain limit. This is a formal foreign exchange control and a loose foreign exchange management; However, some developing countries stipulate that the amount of investment remitted abroad every year should not exceed a certain proportion of investment profits, and it must be approved by the competent authorities of the host country. This is a strict foreign exchange control, and it is this control that is the actual factor affecting the interests of foreign investors. For loose foreign exchange management, foreign investors can transfer profits by supporting franchise fees and labor fees and repaying debts. For those countries that adopt strict foreign exchange control, foreign investors' investment profits cannot be freely remitted abroad. Investors can buy some assets or local treasury bonds that will appreciate in the short term, or deposit them in banks or lend to other companies to preserve their value and gain income. You can also transfer the price to repatriate the profits earned. Foreign investors can also adopt the method of opening up new export business in the host country, which can not only help the host country solve the problem of foreign exchange shortage, but also provide a new way for the transfer of funds.

(4) the risk of interest rate changes and its prevention. When the market interest rate increases, the financing cost of enterprises increases accordingly, which may lead to the decline of operating efficiency and profit, thus making investors suffer the risk of falling income. In this case, the best way is to reduce financing to prevent risks. If it is because of the urgent need for funds due to the expansion of production and business activities, other ways of financing can be considered, such as converting the retained earnings of enterprises into capital. Of course, there are too many retained earnings, and it may be necessary to pay a high retained earnings tax. Then, enterprises have to choose between interest rate and retained earnings tax.

III. Tax Risks and Precautions

International capital will encounter tax types, tax burden levels, tax preferences and some abrupt factors that have an impact on taxation. Therefore, we should fully understand the tax burden in capital flow in advance, predict the possible changes in tax policies as accurately as possible, and take various appropriate measures in time on this basis to minimize the tax burden in capital flow within the scope permitted by law. At the same time, effective measures should be taken to resolve the risk of mutation factors.

(a) take advantage of the differences in tax systems of various countries to resolve the high tax burden. Carefully study the tax systems of various countries. According to the characteristics of tax revenue in this country, measures to reduce tax burden are formulated. For example, in terms of income tax, the tax rates of all countries are generally around 5%, and there is no big difference. However, in terms of retained earnings and dividend distribution, the practices of all countries are different. For example, in Germany and Japan, retained earnings of enterprises are taxed at the rate of 56%, while dividends and bonuses distributed to shareholders are subject to withholding tax at the rate of 36%. When the production scale expands and additional working capital is needed, the retained earnings are not converted into capital, but borrowed from outside. The advantages of doing so are: first, it can avoid paying higher retained earnings tax; second, the interest on loans can be deducted as costs or expenses when calculating taxable income, thus reducing the income tax burden of the company.

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(2) Strive for the tax concession credit policy of the domestic government. In the international capital flow, some capital flows into countries that aim to attract foreign capital and foreign advanced technology and management experience to accelerate their own economic development, and these capitals enjoy the preferential tax exemption and reduction of income (or income) to a certain extent and for a certain period of time. However, the implementation of this fiscal and taxation policy, which affects the international capital flow, must be based on the premise of strengthening international tax cooperation between the countries concerned, that is, the host government will come forward to ask the tax authorities in the investor's home country to treat this part of preferential tax relief as if it had been paid to the host government and give a concession credit.

(3) adopt the transfer price strategy to reduce the tax burden. The general practice is as follows: when a subsidiary in a high-tax country sells goods and provides services and technology to a subsidiary in a low-tax country, it adopts the strategy of lowering the transfer price, so that the purchase cost of the subsidiary in a low-tax country decreases, the profit increases and the tax burden is relatively reduced; On the other hand, when a subsidiary in a low-tax country sells goods and provides services and technology to a subsidiary in a high-tax country, the strategy of raising the transfer price also plays a role in increasing profits and reducing tax burden.

(4) prevention of sudden changes in tax policies. In order to attract funds, some small and medium-sized countries often give foreign investors preferential tax conditions in a certain range and period. However, due to the instability of the government, after the change of regime, the original preferential tax conditions promised by the government may be cancelled and abolished. In this case, the most sensible way for foreign investors is to increase expenses and reduce profits. They usually adopt the method of accelerating depreciation or importing raw materials, semi-finished products and spare parts from subsidiaries of other countries at high prices, so as to avoid the tax burden caused by changes in tax policies as much as possible.

(5) study the tax base range and tax rate differences among countries and decide the capital flow. Accurately defining the tax base range is a prerequisite for determining the tax standard and calculating the tax payable. There are great differences among countries in stipulating the scope of taxation for specific tax recipients. Especially in the calculation of taxable income, there are great differences in the provisions of various countries on the items and their amounts that are allowed to be deducted as expenses, which is directly related to the size of the tax base and thus determines the tax burden of foreign investors. Before investing capital in this country, investors should carefully study the relevant tax laws, accounting regulations and accounting systems of the other side and compare them with those of other countries, so as to have a clear idea. As far as the difference of tax rates is concerned, some countries adopt the proportional tax rate, some countries implement the progressive tax rate, and some countries may levy it at the fixed tax rate (or "fixed tax rate"). Few two countries have the same tax rate structure. When making investment decisions, foreign investors should study and compare the tax structure and tax rate of the host country to determine the investment behavior and the mode of production and operation activities.

iv. solvency risk

we can select relevant indicators from the cash flow statement to judge the risk of debt of the enterprise.

(1) cash ratio, which is the ratio of the cash amount at the end of the enterprise to the current liabilities of the enterprise to judge the risk of debt of the enterprise. Due to the short term of current liabilities (no more than one year), it will soon need to be repaid in cash. If enterprises do not have a certain amount of cash reserves, problems will easily occur when debts expire.

(2) operating net cash ratio, which is compared with the current liabilities of the enterprise by the net cash flow generated by the operating activities of the enterprise. Why use the net cash flow from operating activities? First of all, under normal production and operation conditions, the cash income obtained in the current period must first meet the expenses of production and operation activities, and then meet the expenses of debt repayment. Second, the business activities of an enterprise are the main activities of the enterprise and the main source of its own funds. It should be said that it is also the safest and most standardized way to obtain cash flow. Using the ratio of net cash flow from business activities to current liabilities to measure the risk of debt of an enterprise can reflect the solvency of the enterprise from one aspect.

(3) The ratio of net operating cash to total liabilities is used to measure the ability of an enterprise to pay off all liabilities with the annual net cash flow from operating activities, which can comprehensively reflect the risk of debt situation of the enterprise. By comparing the cash ratios of 3 enterprises in a certain system, we found that the enterprises with cash ratios between 4% and 8% are all enterprises with stable operation and good capital operation, with cash ratios above 1%. Some enterprises have special operating conditions, and some have increased cash balances at the end of the year for some reasons. Although their capital status is good, too high cash ratios will keep assets in the cash with the lowest profitability. Although enterprises do not have risk of debt, their profitability is reduced. Enterprises with cash ratio below 2% have various problems in operation, among which cash shortage is the same feature, and several of them have experienced extremely difficult cash flow, and risk of debt is huge. Through this analysis, can we get the early warning signal of risk of debt: when the cash ratio is lower than 3%, the risk of debt of the enterprise will increase, and at this time, it should be highly valued by the enterprise managers.