Lax Accounting Standards in China

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Number Six
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Lax Accounting Standards in China

Post by Number Six »

http://www.nytimes.com/2012/12/07/busin ... Nj1T9e9gUw

For me the take away line in this article by Floyd Norris came at the end:

"One can only imagine the conversations of Chinese corporate officials as they discuss how gullible Americans turned out to be."
'There are two kinds of injustice: the first is found in those who do an injury, the second in those who fail to protect another from injury when they can.' (Roman. Cicero, De Off. I. vii)

'Choose loss rather than shameful gains.' (Chilon Fr. 10. Diels)
Arthur Rubin
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Location: Brea, CA

Re: Lax Accounting Standards in China

Post by Arthur Rubin »

Number Six wrote:http://www.nytimes.com/2012/12/07/busin ... Nj1T9e9gUw

For me the take away line in this article by Floyd Norris came at the end:

"One can only imagine the conversations of Chinese corporate officials as they discuss how gullible Americans turned out to be."
There's a simple solution. Make US audited statements subject to export controls, allowing only paper-audited statements to be given to Chinese investors.

However, I seem to recall a case in the US where essentially all the assets of a company were trade secrets, which turned out not to exist. I could be wrong, though.
Arthur Rubin, unemployed tax preparer and aerospace engineer
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