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What is the meaning of "secret preparation" in "Accounting Basis"?
Secret preparation refers to such a preparation: in order to conceal profits, enterprises abuse accounting estimates and illegally withdraw assets to prepare items, so that the current profits and losses are underestimated. The provision of secret preparation makes the accounting statements of enterprises violate the provisions of laws and regulations, betray the principles of accounting fairness and consistency of accounting treatment, and most likely make the accounting statements of enterprises fundamentally unreliable.