Posted by Amy CHAN Wen Yi, Year 4 undergrad at the School of Accountancy, Singapore Management University
Singapore investors are demanding tougher rules to prosecute executives of China-based companies traded in the city-state after scandals from New York to Hong Kong have wiped out the market value of such firms.
U.S. and Hong Kong regulators have been ramping up Chinese company probes as Muddy Waters LLC said last month that Sino-Forest Corp. overstated its timber holdings, erasing as much as 82 percent of the China-based tree plantation owner’s market capitalization in Toronto. Continue reading
Posted by Daniel KHOO Guan Lin , Year 4 undergrad at the School of Accountancy, Singapore Management University
Amid the frenzy around Twitter’s $1.8 billion IPO on November 7, it would have been easy to miss a pair of small Chinese IPOs in New York a week earlier. Qunar, the Chinese travel-booking service, raised $167 million on November 1, with share prices rising 89 percent above the initial offering. The day before, 58.com—a Chinese version of Craigslist—raised $187 million, exceeding the initial offering by 47 percent.
Do these IPOs—and three others this year—mark a broader return of Chinese cross-border listings in the United States? It’s too early to tell; after all, Qunar’s listing was the second from a reputable company in a well-understood industry. Continue reading
Posted by Katharine TAN Pei Shi, Year 4 undergrad at the School of Accountancy, Singapore Management University
Shares in Chinese e-commerce company Alibaba crashed on Thursday as the company reported a slide in revenue growth and fended off accusations of trading in fake goods.
Alibaba suffered a 10% drop in its share price in early trading after announcing a 40% increase in revenues in the final quarter of 2014. The total, $4.22bn, missed analysts’ forecasts of $4.45bn. Continue reading
The Price of Oil Is About to Blow a Hole in Corporate Accounting
8:00 AM AWST
March 4, 2015
(Bloomberg) — There’s one place in the world where oil is still $95 a barrel.
The U.S. Securities and Exchange Commission requires drillers to calculate the value of their oil reserves every year using average prices from the first trading days in each of the previous 12 months. Because oil didn’t start its freefall to about $45 till after the OPEC meeting in late November, companies in their latest regulatory filings used $95 a barrel to figure out how much oil they could profitably produce and what it’s worth. Of the 12 days that went into the fourth-quarter average, crude was above $90 a barrel on 10 of them. Continue reading
March 3, 2015, 5:08 PM ET
Almost Half of Global Audits Have Problems
Nearly half of global audits inspected last year were deficient in some way, an international accounting consortium said Tuesday. Top concerns included internal controls testing, measuring fair value of assets, and revenue recognition, according to the International Forum of Independent Audit Regulators. The organization examined almost 950 reports from 29 countries. Internal controls and revenue recognition are two issues getting a closer eye from companies and their auditors, as well as accounting and securities regulators these days. Continue reading