The realization of operating income is the main purpose of the company's operation, and the level of operating income is also the most important standard to measure the profitability of the company's product market. External investors and corporate stakeholders usually judge the investment value of an enterprise through the relevant information such as operating income, cash flow and so on in the company's financial statements. If the listed company is unable to earn and spend for a long time and the company has lost money for two years in a row, it will face the risk of going down to the market. In order to attract investors or avoid delisting, many companies began to use a lot of fake means to make profits positive or a year loss, a year profit, so as to avoid delisting. At a bank issued by the China Securities Regulatory Commission As can be seen from the announcement of the decision on political punishment, in order to achieve some of the purposes of the company, most companies choose to fake their income, especially those that have been in a state of loss for two years in a row. The financial statements of the company after false revenue increase do not reflect the real financial situation of the company, and it can only convey false information after whitewashing to investors. Therefore, it is very necessary for the company to prevent the false increase of income, to increase the examination of the authenticity of business income and to make investors have the ability to identify the fraud of the company's business. Through the analysis of the means of increasing the income of Kunming Machine tool Co., Ltd., Shenji Group, this paper also hopes to be able to list the public. The false income increase behavior that the division may appear to carry on the identification. For companies that have already inflated revenue, they can also provide feasible governance measures.
Key words: Kunming machine tool; virtual income increase; control measures
