Caixin OnlineFinance & EconomicsTop Stories Finance Machinery Makers Change Books to Appear More Profitable, Analysts Say
11.05.2012 16:05

Machinery Makers Change Books to Appear More Profitable, Analysts Say

Sany Group's move to lower accounting standards added 470 million yuan to third-quarter net profit, a strategy it competitors have also used
By staff reporters Shen Hu and Zhang Boling
 
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(Beijing) – Major Chinese heavy machinery makers are lowering accounting standards, a move analysts say allows them to post higher paper profits under rules that are less strict.

In an announcement on October 21, Sany Group Co. Ltd. said it had reduced the ratios of provisioning for bad loans in some receivables, including those that had been overdue for less than three years. The change affected more than 96 percent of the firm's receivables.

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