According to authoritative media brokerage China: On June 28, the National People's Congress voted to pass the decision on amending the Accounting Law, which will be officially implemented from July 1, 2024. As soon as this news came out, investors all rushed to tell each other and rejoice, and we must give a strong thumbs up for it, because the country has finally decided to start from the source and crack down on financial fraud!
For a long time, the phenomenon of financial fraud in the A-share market has been extremely rampant and repeatedly prohibited, which has the most direct connection with the third-party affiliates hired by the relevant listed companies, and some accounting firms responsible for auditing financial reports have selfish and ulterior purposes, they have neglected their duties and simply do not take the initiative to perform their duties as gatekeepers of the capital market, and have opened up to those enterprises that are suspected of having financial problems, so that the three statements of listed companies are always the so-called 'standard unqualified opinions'.
Of course, the revision of the accounting law reflects the will of the state to take the source as the starting point, and is mainly aimed at the financial and accounting personnel within the listed company. The fortress is often breached from within, and this kind of counterfeiting activity is basically active, and its lethality is greater than that of a third-party organization. For this reason, the revision emphasizes the need to greatly increase the degree of accountability, and to impose severe penalties on illegal acts such as falsification, alteration, and preparation of false statements. The specific penalty standard has been upgraded from the previous 50,000,100,000 yuan to 10 times the amount of illegal gains, or the upper limit is 5 million yuan.
After a detailed count, this revision has undergone earth-shaking changes compared with the past, both in terms of the standard of quantitative accountability and the improvement of the qualitative degree. Unsurprisingly, there was also some murmur on the Internet, with some netizens who specialize in accounting saying that the changes were too draconian and that they thought it was not worth the extra legal risks to take a shoestring salary. If you want me to say, the overall view of these friends seems to be a little lacking, and the strict requirements of professional ethics at the top level are actually to protect the relevant practitioners in the long run. In addition, with the continuous acceleration of the opening up process of China's capital market, the corresponding regulatory concepts must also keep up in time.