Baoxin News
Baoxin News｜How do lawyers understand the three major financial statements?
Release time：2019-12-21
In order to improve the professional skills of financial lawyers and serve private enterprises better, on December 18, 2019, Guangdong Provincial Law Firm held the twelfth session of the Protestant Lecture Hall in 2019. "Understanding the three major financial statements", the speaker is Chen Mian, a practicing lawyer of our firm, and the meeting was chaired by Li Mingming.
The company's financial statements are a comprehensive reflection of the company's financial status, operating performance, and development trends. It is the most comprehensive, detailed, and often the most reliable first-hand information for investors and the public to understand the company, determine investment and trading behavior. So how should lawyers understand the three major financial statements?
Lawyer Chen Mian, as a “double certificate” lawyer who holds both a lawyer’s practice certificate and a certified public accountant certificate, combines his lawyer’s practice experience and audit work experience, from the role of finance, financial related personnel, what are the three major statements, company financing, Five aspects including account processing in investment and operation and accounting subjects throughout the three major statements are explained.Mr. Chen believes that the main reason why lawyers do not understand financial statements is because they do not understand the meaning of each accounting subject on the reports. Therefore, during the sharing process, Mr. Chen converted many major accounting subjects in the balance sheet into terms familiar to lawyers, such as: "Accounts receivable" corresponds to "claims to customers" and "short-term loans" corresponds to " "Debt owed to the bank" and "paid-in capital" correspond to "paid-in capital", making it easier for the lawyers present to understand the meaning of the accounting subjects. By deconstructing the “expenditure” that lawyers are familiar with, Ms. Chen Mian explained the difference between costs and expenses, and introduced what is the structure of the income statement for everyone.Next, for the cash flow statement that is most easily overlooked, Mr. Chen analyzed the possible criminal risks caused by the broken capital chain of the enterprise, explained the importance of the cash flow statement, and demonstrated the presentation structure of the cash flow statement by examples to deepen The lawyers here understand the cash flow statement.
Among the partners, the lawyers present here have also published their experiences and experiences after the lecture. Partner attorney Ling Huanbin was the first to share as a lawyer's representative. Through his own experience in buying and selling stocks and working experience, combined with this letter of trustworthiness lecture, he shared his experience of learning financial knowledge recently, summed up the fact that lawyers understand financial statements, and Recommend Tsinghua University professor Xiao Xing's "A Book to Read the Financial Report", and communicate with Mr. Chen Mian about the suspected fraud of the monetary funds of a certain listed company. Lawyer Chen responded that some companies may borrow a large amount of money through the bridge funds before the report date, so that the report looks like a lot of monetary funds, but in fact the money is transferred out the next day. Afterwards, Mr. Ling gave a high degree of recognition and evaluation to the content of the course of the Baoxin Lecture. As a highly professional industry, the lawyer industry must maintain the enthusiasm of continuous learning. If learning goes against the current, it will retreat. With the introduction of the draft of the Civil Code, Attorney Baoxin should also maintain an attitude of professional learning, study the Civil Code, and better serve our clients.
Partner lawyer Huang Jiazhuo proposed to study finance and taxation, especially to understand that tax planning has a lot of space for lawyers to develop their future business. Lawyer Huang also shared the relevant regulations on capital reserve conversion to capital, and communicated with Lawyer Chen on the field of finance and taxation, the rational and legal application of the personal income tax law, and the use of funds on the account. Partner lawyer Yin Kunyi also exchanged questions on related party transactions, one-person company property and shareholder personal property, and Chen Jinfeng's intern lawyer exchanged questions about the company's external guarantees that were not listed in the statement. Ms. Chen also responded to the above issues one by one, and the atmosphere of on-site exchanges was high.The successful holding of the Baoxin Lecture Hall gave all participants a clearer and more systematic understanding of the financial statements. Ms. Chen also used his professional explanation to draw a successful ending for our firm's "Baoxin Lecture Hall" in 2019. In the future, Baoxin Law Firm will continue to use the Baoxin Lecture Room to promote lawyers to understand various aspects of knowledge, improve their business capabilities, and strive to provide customers with better and professional legal services.
Photo source: Yang Wenlai｜Writing editor: Fang Ganpan｜Reviewer: Yue ZhanchuanGuangdong Baoxin Law Firm sincerely looks forward to your reorganizationOffice phone: 0760-88302332Office Address: 6th Floor, Block 1, Hongyu Building, No. 57 Zhongshan 4th RoadEmail: lawyer@baoxinlaw.com
