Core Insights - The China Securities Regulatory Commission (CSRC) released the annual financial report accounting supervision report for listed companies for 2024, indicating a total of 5,413 listed companies in the A-share market disclosed their annual financial reports by April 30, 2025 [1] - Among the companies that disclosed their reports, 192 received non-standard audit opinions, with 56 having unqualified opinions with emphasis of matter, 35 with unqualified opinions regarding going concern, and 72 with qualified opinions [1] - The CSRC noted that while companies generally adhere to accounting standards and financial disclosure rules, there are still issues in areas such as revenue, long-term equity investments, financial instruments, asset impairment, and non-recurring gains and losses [1] Regulatory Actions - The CSRC plans to continue monitoring and reviewing the accounting information disclosure issues identified in listed companies, ensuring strict regulatory follow-up [1] - There will be an emphasis on enhancing the supervision of financial report information disclosure and improving regulatory mechanisms to increase effectiveness [1] - The CSRC aims to provide practical guidance on accounting issues that are market hotspots and challenges, striving to improve the consistency and effectiveness of the execution of accounting standards and financial disclosure rules in the capital market [1]

Financial Reporting Overview - As of April 30, 2025, a total of 5,413 listed companies in the A-share market disclosed their 2024 annual financial reports, including 3,185 from the main board, 1,377 from the ChiNext board, 586 from the Sci-Tech Innovation board, and 265 from the Beijing Stock Exchange [1] - Among the companies that disclosed their reports on time, 192 received non-standard audit opinions, including 56 with unqualified opinions containing emphasis of matter, 35 with unqualified opinions containing going concern issues, 8 with both emphasis of matter and going concern issues, 72 with qualified opinions, and 21 with disclaimers of opinion [1] Revenue Recognition Issues - Some companies improperly used the time period method to recognize revenue and costs, leading to unreasonable recognition of revenue and costs during the reporting period [2][3] - Companies using pricing models linked to commodity indices incorrectly treated price fluctuations as variable consideration, failing to recognize revenue appropriately [4] - Certain companies did not properly account for sales rebates, leading to incorrect revenue recognition and liability classification [5] Long-term Equity Investments and Consolidation Issues - Companies incorrectly judged the scope of consolidated financial statements, failing to recognize control over subsidiaries due to protective rights in agreements [7][8] - Some companies improperly segmented subsidiaries for consolidation, failing to consider the overall control of the investment [8] - Companies made inappropriate adjustments to the consolidation scope, leading to inconsistent accounting treatment for the same equity transfer [9][10] Financial Instruments Recognition and Measurement Issues - Companies inadequately estimated expected credit losses, failing to group financial instruments based on credit risk characteristics [20][21] - Some companies incorrectly classified financial liabilities and equity instruments, leading to misstatements in financial reporting [22] - Companies failed to recognize financial liabilities related to the purchase of minority interests in a timely manner [23][24] Asset Impairment Issues - Companies did not appropriately recognize inventory impairment, particularly for customized products delivered but not yet accepted by customers [27] - Some companies failed to distinguish between prepaid accounts and other receivables, leading to improper impairment recognition [28] - Companies inadequately measured the recoverable amount of assets, using inappropriate valuation methods [29] Other Recognition and Measurement Issues - Companies improperly accounted for research and development expenses related to customized products, leading to potential misclassification [31][32] - Some companies incorrectly treated fixed asset repair costs, misclassifying them as operating expenses instead of capitalizing them [33] - Companies failed to appropriately recognize and measure construction in progress, leading to inaccuracies in financial reporting [34]

Core Insights - The China Securities Regulatory Commission (CSRC) released the 2024 Annual Financial Report Accounting Supervision Report, indicating that listed companies generally comply with accounting standards and financial disclosure rules, but some still exhibit errors in accounting treatment or financial information disclosure [1][2] Group 1: Financial Reporting Compliance - A total of 5,413 listed companies in the A-share market disclosed their 2024 annual financial reports by April 30, 2025, including 3,185 from the main board, 1,377 from the ChiNext, 586 from the Sci-Tech Innovation Board, and 265 from the Beijing Stock Exchange [1] - Among the companies that disclosed their reports, 192 received non-standard audit opinions, with 56 having unqualified opinions with emphasis of matter, 35 with unqualified opinions related to going concern, and 72 with qualified opinions [1][2] Group 2: Specific Accounting Issues - Issues identified include improper revenue recognition methods, incorrect accounting for sales rebates, and mismanagement of contract fulfillment costs [2] - In terms of long-term equity investments and business combinations, companies failed to correctly determine the scope of consolidated financial statements and improperly recognized goodwill from non-simultaneous control business combinations [2] - Problems with financial instruments included inappropriate provisions for expected credit losses and failure to distinguish between financial liabilities and equity instruments [2] Group 3: Regulatory Actions and Recommendations - The CSRC plans to continue monitoring the identified accounting disclosure issues and will enforce regulatory actions as per established guidelines [2] - The commission emphasizes the need for listed companies and intermediary institutions, such as accounting firms, to address the issues highlighted in the report and improve their understanding and execution of accounting standards and financial disclosure rules [2]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) released the 2024 Annual Financial Report Accounting Supervision Report, highlighting the performance and compliance of listed companies in the A-share market regarding financial reporting and accounting standards [1] Group 1: Financial Reporting Overview - As of April 30, 2025, a total of 5,413 listed companies in the A-share market disclosed their 2024 annual financial reports, including 3,185 from the main board, 1,377 from the ChiNext, 586 from the Sci-Tech Innovation Board, and 265 from the Beijing Stock Exchange [1] - Among the companies that disclosed their reports, 192 received non-standard audit opinions, with 56 having unqualified opinions with emphasis of matter, 35 with unqualified opinions regarding going concern, 8 with both emphasis of matter and going concern, 72 with qualified opinions, and 21 with disclaimers of opinion [1] Group 2: Regulatory Actions and Future Plans - The CSRC plans to continue monitoring and addressing the accounting information disclosure issues identified in the reports, ensuring strict regulatory follow-up [2] - There will be an emphasis on enhancing the regulatory framework for financial report information disclosure and improving regulatory effectiveness [2] - The CSRC encourages listed companies and intermediary institutions to take the issues raised in the accounting supervision report seriously, correct errors in financial reports, and improve their understanding and execution of accounting standards and disclosure rules [2]

Core Insights - The China Securities Regulatory Commission (CSRC) released the 2024 annual financial report accounting supervision report, indicating that listed companies generally adhere well to accounting standards and financial disclosure rules [1] - However, some listed companies still exhibit errors in accounting treatment or financial information disclosure in areas such as revenue, long-term equity investments, business combinations, financial instruments, asset impairment, and non-recurring gains and losses [1] Regulatory Actions - The CSRC will continue to monitor and review the accounting information disclosure issues identified in listed companies, strictly following regulations for subsequent regulatory actions [4] - There will be an enhancement in the supervision of financial report information disclosure, with ongoing improvements to the regulatory work mechanism to increase regulatory effectiveness [4] - The CSRC aims to strengthen practical guidance on accounting issues that are market hotspots and challenges, continuously improving the consistency and effectiveness of the implementation of accounting standards and financial disclosure rules in the capital market [4] Market Overview - As of April 30, 2025, a total of 5,413 listed companies in the A-share market disclosed their 2024 annual financial reports, including 3,185 from the main board, 1,377 from the ChiNext board, 586 from the Sci-Tech Innovation board, and 265 from the Beijing Stock Exchange [4] - Among the companies that disclosed their annual financial reports on time, 192 received non-standard audit opinions [4]

Summary of Key Points Core Viewpoint The report highlights the compliance and execution of accounting standards and financial information disclosure rules by listed companies in the A-share market, revealing areas of concern regarding revenue recognition, financial reporting, and accounting treatment. Group 1: Revenue Recognition Issues - Some companies improperly used the time-based method for revenue and cost recognition, leading to unreasonable income and cost reporting [4] - Companies failed to appropriately account for sales revenue under price-point models, treating price fluctuations as variable consideration instead of embedded derivatives [5] - Certain companies did not correctly handle sales rebates, misclassifying them as estimated liabilities rather than contract liabilities [6] - Companies inadequately managed contract performance costs, failing to recognize and amortize these costs in accordance with revenue recognition standards [7] Group 2: Consolidation and Financial Reporting - Some companies incorrectly determined the scope of consolidated financial statements, failing to recognize control over subsidiaries [8][9] - Companies made inappropriate adjustments to the consolidation scope, leading to inconsistent accounting judgments between interim and annual reports [10][11] - Certain companies misclassified portions of subsidiaries for consolidation, not adhering to the criteria for segmenting control [12] Group 3: Business Combination and Goodwill - Companies improperly recognized goodwill in step acquisitions, failing to determine the acquisition date correctly [13] - Some companies did not appropriately account for contingent consideration in business combinations, leading to misstatements in financial reporting [14][15] - Companies inadequately handled the accounting for performance commitments made by minority shareholders in business combinations [16][17] Group 4: Internal Transactions and Equity Accounting - Companies failed to properly account for internal transactions in consolidated financial statements, leading to misstatements in asset valuations [18][19] - Some companies did not appropriately recognize minority interests when disposing of subsidiary shares without losing control [20] Group 5: Financial Instruments and Credit Losses - Companies inadequately estimated expected credit losses, failing to differentiate between secured and unsecured receivables [21][22] - Some companies misclassified financial liabilities and equity instruments, leading to incorrect financial reporting [23][24] - Companies did not timely recognize financial liabilities related to purchasing minority interests [25] Group 6: Asset Impairment and Measurement - Companies failed to appropriately recognize inventory impairment, particularly for customized products delivered but not accepted [27] - Some companies misclassified prepayments and other receivables, leading to incorrect impairment assessments [29] - Companies inadequately measured the recoverable amount of assets, using inappropriate valuation methods [30][31] Group 7: Other Recognition and Measurement Issues - Companies improperly accounted for research and development expenses related to customized products, leading to potential misclassification [32][33] - Some companies misclassified fixed asset repair costs, treating them as operating expenses instead of capitalizing them [34] - Companies failed to correctly handle the accounting for construction in progress, leading to misstatements in asset valuations [35] - Some companies did not appropriately account for penalties paid for lease terminations, misclassifying them in financial statements [36][37] - Companies inadequately recognized estimated liabilities related to the transfer of subsidiary shares, leading to misstatements in financial reporting [38] - Some companies failed to properly account for deferred tax assets related to share-based payments [39] - Companies did not correctly distinguish between changes in accounting estimates and prior period errors, leading to potential misstatements [40][41]

Core Viewpoint - The article discusses the financial reporting status of A-share listed companies in China for the year 2024, highlighting the compliance with accounting standards and the need for improved financial information disclosure [2]. Group 1: Financial Reporting Overview - As of April 30, 2025, a total of 5,413 A-share listed companies disclosed their 2024 annual financial reports, including 3,185 from the main board, 1,377 from the ChiNext board, 586 from the Sci-Tech Innovation board, and 265 from the Beijing Stock Exchange [1]. - Among the companies that disclosed their reports, 192 received non-standard audit opinions, with 56 having unqualified opinions with emphasis of matter, 35 with unqualified opinions related to going concern, 8 with both emphasis of matter and going concern, 72 with qualified opinions, and 21 with disclaimers of opinion [1]. Group 2: Regulatory Insights - The China Securities Regulatory Commission (CSRC) conducted a review of the 2024 annual financial reports, finding that while most companies adhered to accounting standards, some had errors in revenue recognition, long-term equity investments, financial instruments, asset impairment, and non-recurring gains and losses [2]. - The CSRC plans to continue monitoring the identified accounting disclosure issues, enhance the regulatory framework for financial reporting, and provide practical guidance on challenging accounting issues to improve consistency and effectiveness in the capital market [2]. - Companies and accounting firms are urged to address the issues highlighted in the regulatory report, improve their understanding and execution of accounting standards, and enhance the quality of financial information disclosure to support high-quality development of the capital market [2].

Core Viewpoint - The article discusses the financial reporting status of A-share listed companies in China for the year 2024, highlighting the compliance with accounting standards and the issues identified by the China Securities Regulatory Commission (CSRC) in their review of these reports [2][3]. Group 1: Financial Reporting Overview - As of April 30, 2025, a total of 5,413 A-share listed companies disclosed their 2024 annual financial reports, including 3,185 from the main board, 1,377 from the ChiNext board, 586 from the Sci-Tech Innovation board, and 265 from the Beijing Stock Exchange [2]. - Among the companies that disclosed their reports, 192 received non-standard audit opinions, with 56 having unqualified opinions with emphasis of matter, 35 with unqualified opinions regarding going concern, and 72 with qualified opinions [2]. Group 2: Regulatory Findings and Actions - The CSRC conducted a sampling review of the 2024 annual financial reports and found that while most companies adhered to accounting standards, there were still issues in areas such as revenue recognition, long-term equity investments, financial instruments, asset impairment, and non-recurring gains and losses [3]. - The CSRC plans to enhance its regulatory efforts by following up on the identified accounting disclosure issues, improving the regulatory framework, and providing practical guidance on accounting issues that are of market concern [3]. - Companies and intermediary institutions are urged to address the issues highlighted in the accounting regulatory report promptly and to improve their understanding and execution of accounting standards and disclosure rules [3].