Investors in Asia need to bear in mind financial risks

Financial scandals and irregularities can occur globally, but most recently have begun a steady climb in Asia. Until now not much had been documented about these incidents, and there remains a significant lack of corporate governance in these markets. The book was created to address this knowledge gap while keeping the global investor in mind. Co-authored by two leading authorities in the field, it is the first ever in-depth study into detecting financial irregularities specifically in the international financial reporting of Asia-Pacific companies.

Given the move toward international financial reporting standards and toward investing in the Asia-Pacific region there is a need for a framework, for detecting financial irregularities independent of a particular set of accounting rules and using real life Asia-Pacific company examples. While some of the accounting techniques used by these companies are similar to those in the United States there are some unique issues in the Asia-Pacific region related to corporate governance and disclosure issue. A framework will be a resourceful tool to move companies into the next phase of global reporting standards.

The first section of the book lays out a proven framework for detecting irregularities in profits, financial position, or cash flow. Its subsequent chapters illustrate the most common irregularities in the Asia-Pacific region and some of the warning signs to look for. Each chapter also includes a useful checklist of different analysis techniques, an overview of the most common games that companies play, and a full case study of an Asia-based company to help illustrate the concepts in a holistic manner. The authors' personal experiences in both global and Asian financial markets enrich the text and offer readers a firsthand look at real world scenarios, helping them further scrutinize companies within that same space.