In the process of analysis, we still need to combine the notes analysis of accounting statements to find the focus of investigation and analysis to distinguish the authenticity of accounting statements. Notes to accounting statements 10, mainly including basic accounting assumptions about the company; Main accounting policies, accounting estimates and methods for compiling consolidated accounting statements; Corporate tax related matters; Basic information about the holding company and the joint venture company; Notes on main items of consolidated accounting statements; Notes on the main items of the accounting statements of the parent company; Related party relationship and its transaction description; Description of contingencies; Description of commitment; Description of the project after the balance sheet date; Explanation of other important matters. First, check the basic accounting assumptions and pay attention to whether there is any situation that does not conform to the basic accounting assumptions. Accounting is based on certain accounting assumptions, and the preparation of financial accounting reports is generally based on basic accounting assumptions. When preparing financial accounting reports based on recognized basic assumptions, listed companies do not need to disclose the basic assumptions used; If the accepted basic accounting assumptions are not followed, it must be disclosed and the reasons must be explained. Failure to prepare financial and accounting reports according to accepted basic assumptions often means that the company has problems. For example, in general, the preparation of financial accounting reports is based on the assumption of going concern. If listed companies disclose that they have not prepared financial and accounting reports according to this basic assumption, investors need to be vigilant, because listed companies usually change this basic accounting assumption when there is bankruptcy and liquidation risk. Second, analyzing the basic situation of the company, paying attention to the history of listed companies and major historical events and industries of listed companies will affect the profitability of the company. Before judging the authenticity of accounting statements, it is necessary to analyze the history and main business scope of listed companies to judge their development prospects and provide trend basis for the analysis of specific statements and account items. Third, pay attention to the influence of accounting treatment methods on profits. Accounting policy is the specific principles that listed companies abide by in accounting and the specific accounting treatment methods adopted by enterprises, which mainly include: income recognition, ending inventory valuation, ending investment valuation, ending fixed assets valuation, ending intangible assets valuation, income tax accounting method, long-term equity investment accounting method and borrowing cost treatment method. Accounting estimation refers to the judgment made by an enterprise on transactions or events with uncertain results according to the latest available information, which mainly includes the provision ratio of bad debt reserves and the expected service life of fixed assets. Because accounting policies can have different choices in specific use, accounting estimation mainly depends on the professional judgment of accountants. Therefore, under the same original record, accounting statements with different financial data can be compiled and different net profits can be obtained by adopting different accounting policies and accounting estimates. When laws, accounting standards and other administrative regulations and rules require changes in accounting policies, or when the financial status, operating results and cash flow information provided by listed companies can be more reliable after changes in accounting policies, listed companies should change their accounting policies; When the basis of company estimation changes, new information is obtained and more experience is accumulated, listed companies should adjust their accounting estimates. Changes in accounting policies and adjustments in accounting estimates may have a significant impact on the profits of listed companies. Jin Dehuan Li Shengli, School of Securities and Futures, Shanghai University of Finance and Economics.