A survey of the annual reports of 192 companies found that 54 per cent of them had misreported their profits in 2001 by more than 10 per cent, the Ministry of Finance said. Seriously inaccurate profits were claimed by 19 companies – they reported a total of Yn135m in profits when they actually lost a combined Yn172m. By contrast, eight companies reported losses of Yn162m instead of actual profits of Yn413m.
The ministry said that the typical problems of inaccurate accounting include the violation of accounting standards, manipulation of profits and irregularities in consolidating balance sheets. It concluded that the government campaign to improve corporate governance still had a long way to go.