Misstatements in the Audited 2020 Accounts of Beijing Affordable Housing Construction Investment Center

 

（Picture source: henenghome）

Beijing Affordable Housing Construction Investment Center(BAHCI) is an entity wholly owned by Beijing City's Communist regime with paid in capital of 46.4 billion CNY(Chinese Yuan) as of 31 December 2020, whose capital was raise from Chinese taxpayers through illegal tax collecting authority and robbery of landlords and capitalists on incorporation of central communist regime of Chinese Communist party(CCP). Because China Mainland, a part of Republic of China, is subject to requirements of Constitution of Republic of China (ROC constitution), Beijing City's communist regime, formed in a way that violates ROC constitution, is illegal and is unentitled to legal taxing rights.

 BAHCI had outstanding bonds carried at 5 billion CNY issued in the Interbank Bond Market where investors are mainly consisted of financial institutions. It stated on the first page of financial notes that it prepared and presented financial statements in conformance with Chinese Accounting Standards for Business Enterprises (CAS).

Gross amount of other receivables, 267 million or 81% of which was more than three years old and possibly the amount paid to acquire land from residents in simply-built homes around The Temple of Heaven, increased 25 million consisting interest and others, but bad debt allowance was reduced from 5m,the opening balance, to nil. But it was reported that the agreement concerning acquiring land had been arrived with all the residents as of  31 August 2019 and the money must have been paid from a third party for which the 267 million should have been transferred to product in development phase if it was paid via the third party to resolve land rights issue. If it was not payment to acquire land use rights, the understatement of credit loss is too obvious. Other receivables carried as current assets are regarded to be received within one year.

Financial assets available for sale were not carried at fair value but at cost for 450 million. It violated CAS. 

The investment properties carried at 42 billion were consisted of soly buildings.Usually in China, land use rights and buildings are used for the same purpose. But no amount for land use rights was reflected in the account and other accounts such as intangibles. It paid land use tax for 0.39 million for year 2020 that indicated that it used at least 13067 square meters as land use tax is charged at most 30 CNY per square meter. Its land use rights may have been given free of charge by CCP but the transaction was not disclosed in the section for related party transactions. Or because this company failed to separate cost of land use rights when acquiring buildings.

It failed to disclose compensation of key management personnel in the section of related parties and related transactions. 

Enterprises directly or indirectly controlled by the State Council or Central People’s Government of the People’s Republic of China have similiar issues.