My intentions? Well, since this a forum for discussion about BFAR, I intend to discuss BFAR. And not why they "shouldn't" file a 10K acceptable to the SEC but why they can't file one at the present time, that would be acceptable to the SEC.
It appears that the SEC has filed suit with the 5 American accounting firms (working jointly with Chinese firms) most active in providing accounting services to Chinese companies listed on American Exchanges. In addition, the PCAOB is demanding that the Chinese firms that do the accounting become sanctioned by the PCAOB. The crux of the problem is that the Chinese government will not allow the PCAOB to inspect the Chinese firms that do the accounting or allow them to examine financial worksheets for the companies being audited. Without the audit and sanction, the financial audits performed by the Chinese affiliate accounting companies are deemed not reliable by the SEC, according to the Cogressional Sarbanes-Oxley Act. That is why we have seen so many refiles of 10-K's so recently. But, even those that have been refiled in the past are only temporarily acceptable to the SEC. That is the crux of the problem with filing current 10-K's by Chinese companies now and until these issues are resolved.
It has been publicized that there will be a meeting of the PCAOB and the Chinese government to try and resolve this issue. There have been many others, but this one has been deemed a "Crossroads" meeting. The PCAOB has had several time extensions by the SEC and U.S. Government to try and get this issue resolved and has been unsuccessful to date. The time limit for resolving these problems is Dec. 31, 2012. In addition to all this, the Congressional Financial Legislative Commitee, has also entered into the fray with concerns, after numerous complaints by investors who lost a substantial amount of money by investing in Chinese stocks.
The crux of all this is, the combined forces have decided that enough leeway and effort has been given to the Chinese government and that companies from China that list on U.S. markets must begin to comply with financial regulation of American Markets. The current sentiment is delisting of all Chinese companies from U.S. markets is a distinct possibilty. There is even a threat to American companies that do a substantial amount of their business in China, as financial reports will be impacted by unacceptable audits of their business in China.
Knowing all this, after doing extensive research, leaves me questioning whether BFAR will expend the time, money and effort to refile financials in the current atmosphere. Because the suits were filed by the SEC 2 days ago and that BFAR made it's news available prior to all this, I'm wondering if there hasn't been some reconsideration on their part? At least until some resolution to the current dilema is arrived at.
The articles I posted here (in 2 different posts)or the sites attributable to them, were explanatory of all this that is going on. And I thought they would be informative. It was information provided by the Chairman of the PCAOB (Mr. Doty), who will be meeting with the Chinese government, in an attempt to resolve these issues.
Now, are you asking if I am a basher or trying to drive down the share price to buy cheap stock? The answer to both questions is No. I find these Chinese companies interesting and a learning experience. And I enjoy discussing what is going on with them. Am I trying to burst your bubble? Well, how could I? You know what you know and are convinced one way or another. And it is not my intent to try. This is a forum for discussion of BFAR and I wish to join in the discussion. That is my only intent.
