Here’s an accounting failure large enough to startle, but with little consequence in the end. Citic, one of the largest brokers in China, claimed more than 1 trillion yuan in over-the-counter derivatives it didn’t actually hold, in monthly financial reports this year. A regulatory body found the error, and Citic is in the process of filing amended reports. The story at Reuters:
The accounting error does not affect Citic’s financial results. Contracts were apparently double-counted after a technical change in a database. The timing of the error suggests that it could have been related to the stock market rout, though few details are available.