China Southern Glass Co. said it was likely to show a net loss for 1999 due to stricter accounting rules.
The Shenzhen-based glassmaker had invested in property projects and was required to make prov…
China Southern Glass Co. said it was likely to show a net loss for 1999 due to stricter accounting rules. The Shenzhen-based glassmaker had invested in property projects and was required to make provisions in line with the new rules, the company said in a recent statement. “As a result, the board of directors forecast the firm will record a relatively heavy net loss for 1999,” the statement said. The Ministry of Finance announced new rules in November for corporate accounting, requiring listed companies to make provisions for uncollected debts, unsold inventory and short-and long-term investments. Most of China“s listed companies have not made such provisions in previous years. Some 41 companies listed on the Shenzhen and Shanghai stock exchanges have forecast 1999 net losses with more than half attributing the losses to the new accounting rules. Of the total, six companies, including Southern Glass, list B shares in Shenzhen or Shanghai.