I spent twenty years as a securities analyst (bond ratings) whose domain included Asian banks and sovereigns. Asians are challenged by many Western cultural artifacts which, in my case, included transparent financial accounting and the classical financial methodology of securities analysis. Since "face" is crucial, the purpose of accounting in Asia is to project an attractive face, and the purpose of securities analysis is to reinforce existing hierarchical structures. These challenges are such that neither financial accounting nor securities analysis can be reconciled with Asian cultural values.
"Gain a deeper understanding of Asian financial reporting and how to detect irregularities
The Asian region, and particularly China, is becoming a hotbed of investment activity. There have been quite a few accounting scandals in Asia in the recent years – now rivaling those we have seen in the Americas and Europe. Assessing potential or active overseas investments requires reliance on financial statements, the full parameters of which may vary from region to region. To effectively analyze statements, it is necessary to first understand the framework underlying these financial statements and then lay out a protocol for detecting irregularities. It's impossible to create and implement a practical plan without a deeper knowledge of the various factors at play.
Asian Statement Analysis: Detecting Financial Irregularities provides a framework for analysis that makes irregularities stand out. Authors Chin Hwee Tan and Thomas R. Robinson discuss international financial reporting standards, including characteristics particular to the Asian region. Tan and Robinson's combined background in academia and Asian finance give them a multi-modal perspective and position them as top authorities on the topic. In the book, they address issues such as:
Detection of irregularities independent of particular accounting rules
The most common irregularities in the Asian market
Similarities and differences between U.S. and Asian accounting techniques
An overarching framework for irregularity detection
The book uses real-world examples to illustrate the concepts presented, with the focus on Asian companies. As the first ever in-depth study on manipulation and irregularities in the Asian market, Asian Financial Statement Analysis: Detecting Financial Irregularities is uniquely positioned to be a valuable resource in the move toward the next phase of global reporting standards."
I spent twenty years as a securities analyst (bond ratings) whose domain included Asian banks and sovereigns. Asians are challenged by many Western cultural artifacts which, in my case, included transparent financial accounting and the classical financial methodology of securities analysis. Since "face" is crucial, the purpose of accounting in Asia is to project an attractive face, and the purpose of securities analysis is to reinforce existing hierarchical structures. These challenges are such that neither financial accounting nor securities analysis can be reconciled with Asian cultural values.
Excellent heads up Michael. Love it. Just wondering if the ‘shock-ful’ in the lead should be ‘chock full’? Cheers
You're absolutely right - thank you!
A good book:
"Gain a deeper understanding of Asian financial reporting and how to detect irregularities
The Asian region, and particularly China, is becoming a hotbed of investment activity. There have been quite a few accounting scandals in Asia in the recent years – now rivaling those we have seen in the Americas and Europe. Assessing potential or active overseas investments requires reliance on financial statements, the full parameters of which may vary from region to region. To effectively analyze statements, it is necessary to first understand the framework underlying these financial statements and then lay out a protocol for detecting irregularities. It's impossible to create and implement a practical plan without a deeper knowledge of the various factors at play.
Asian Statement Analysis: Detecting Financial Irregularities provides a framework for analysis that makes irregularities stand out. Authors Chin Hwee Tan and Thomas R. Robinson discuss international financial reporting standards, including characteristics particular to the Asian region. Tan and Robinson's combined background in academia and Asian finance give them a multi-modal perspective and position them as top authorities on the topic. In the book, they address issues such as:
Detection of irregularities independent of particular accounting rules
The most common irregularities in the Asian market
Similarities and differences between U.S. and Asian accounting techniques
An overarching framework for irregularity detection
The book uses real-world examples to illustrate the concepts presented, with the focus on Asian companies. As the first ever in-depth study on manipulation and irregularities in the Asian market, Asian Financial Statement Analysis: Detecting Financial Irregularities is uniquely positioned to be a valuable resource in the move toward the next phase of global reporting standards."
I agree, I loved that book as well. Summarised well the techniques used by frauds, as exposed by many of the more public short-sellers.
Fascinating and valuable topic. Thanks for this great detailed review!
I like these book reviews on more adjacent subjects to investing.
That's great to hear, thanks IJW. I found it a fascinating subject as well.