Very good article in last weeks NY Times DealBook.
Mark Dixon, is the founder of a London based M&A Advisory Firm, and has more than 20 years experience in M&A, including with Chinese companies.
He basically makes the case that in deals he was working on, Chinese managers make Enron, Worldcom, & Adelphia look like cub scouts with regards to revenue and expense recognition. He goes on to state that the type of "Gymnastics" that goes on there, accounting should be an Olympic Sport.
dealbook.blogs.nytimes.com/2009/08/17/another-view-shanghai-ed-profits/?pagemode=print"
In a previous post, I stated that Chinese Banks are worse then ours, and ours are insolvent. The Chinese government is well aware of these shenanigans as to is our government with regards to fair value accounting and FASB Mark To Market Rules. We are all in trouble when the Chinese Banks do a double header off the uneven parallel bars.
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