Along with the
rapid development of Chinese economy, more and more companies are considering
going listing. In this respect, we have provided pre-IPO finance and tax services
to companies seeking being listed in domestic or overseas stock exchanges
andhave gained abundant experience. Usually, domestic pre-IPO companies may encounterfollowing
financial or tax-relatedissues:
-Financial
statements, especially the basic and scope of consolidatedfinancial statementsare
not compliant withregulations of relevant stock exchanges or regulators when
they are seeking overseas listing.
-the criteria of revenue recognition or cut-off issue
-Inadequate provision of asset impairment
-Unreasonable treatment of capitalization vs.expenses
-accounting and tax traceability of cash basis items
-Reasonableness of related party transactions and shareholder loan and transfer
pricing issue
-financial or accounting risks due to the lack of sound internal control system
-how to establish the holding structures and optimize tax to meet IPO
requirements
-tax issues relating to corporate restructuring for the purpose of IPO.
-Remedy to historical tax incompliance and solution toprior tax dispute and
insufficient tax internal controls.
-valuation of
stock option incentives and tax and legal issues of held-on-behalf shares
-how to keep long-term tax compliance, especially after being listed and under
public supervision along with the on-going development of tax regulations
Usually we
will suggest clients perform a thorough analysis,identify the key problems and
the unutilized opportunitiesin advance, and formalize and implement action
plans by referencing to advanced experiences and successful cases of other
companies. During the courses, we can provide relevant financial or tax
services as needed or act as the one-stop financial or tax advisorof clients. In
addition, we are keeping close relationship with other agents such as
accounting firms with security business qualification, law firms, investment
banks and can jointly provide one-stop services to our clients. These services
may include:
1. Financial advisory service
-provide
consulting service on the IPO requirements of different domestic and overseas
stock exchanges
-assist to contact and engage the investment bank、lawyer and other necessary agents(valuer,
actuary,etc)
-assist to contact and engage CPA firm of IPO audit
2. Audit and financial consultancy services
-help review
the finance records and other compliance documentsin accordance with IPO
standards of relevant markets and raise recommendations to facilitate the IPO
work in the future.
- to be engaged as the statutoryauditorof pre-IPO companiesduring the
corresponding reporting period and offer the quality financial statements
before going listing in order to minimize the difference between IPO reporting
and statutory financial statements and enhance the competitiveness of the
companies.
-assist the communication with the IPO auditor during IPO audit phase to facilitate
the completion of the IPO audit
3. related tax
consulting and implementation assistance services
-Assist companies
to analyze targeted holding structure and management mode before going listing,
corporate restructuring required for the desired structure(i.e. equity
transfer, merger, de-registration, etc) and tax consideration relevant to the
restructuring, and to quantify possible tax exposure.
-Assist companies
to perform tax internal control review in advance to IPO restructuring to
facilitate the identification of potential tax issues before application to tax
authority and to find out possible tax planning opportunity.
-Analyze tax treatmentsafter
the company is listed and identify possible tax planning opportunities, the
purpose of which is to take these future tax exposures into accountbefore IPO
restructuring andmodify restructuring plan to optimize the tax efficiency
during and after IPO phases.
-assist companies to securefavorable tax treatment from
tax authority during IPO restructuring.
