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Enterprise Accounting System

Enterprise Accounting System

  Chapter XNUMX General
  Article XNUMX. This system is formulated in accordance with the Accounting Law of the People's Republic of China and other relevant national laws and regulations in order to standardize the accounting of enterprises and provide accounting information truthfully and completely.
Article XNUMX This system shall be implemented for enterprises (including companies, the same below) established within the territory of the People's Republic of China, except for enterprises that do not raise funds externally and operate on a relatively small scale, as well as financial and insurance enterprises.
Article XNUMX An enterprise shall, in accordance with the relevant accounting laws, administrative regulations and the provisions of this system, and on the premise of not violating this system, formulate accounting methods suitable for its own enterprise in light of its specific circumstances.
Article XNUMX. The requirements for enterprises to fill out accounting vouchers, register accounting books, and manage accounting files shall be implemented in accordance with the "Accounting Law of the People's Republic of China", "Basic Accounting Work Specifications" and "Administrative Measures for Accounting Files".
Article XNUMX. Accounting shall take the transactions or events of the enterprise as the object, and record and reflect the various production and operation activities of the enterprise itself.
Article XNUMX. Accounting shall be based on the continuous and normal production and operation activities of the enterprise.
Article XNUMX. Accounting shall be divided into accounting periods, accounts shall be settled in installments and financial accounting reports shall be prepared.The accounting period is divided into annual, semi-annual, quarterly and monthly.Annual, semi-annual, quarterly and monthly are determined according to the start and end dates of the Gregorian calendar.Semi-annual, quarterly, and monthly are referred to as accounting interim periods.
The term end of period and regular period mentioned in this system refer to the end of the month, the end of the quarter, the end of half a year and the end of the year.
Article XNUMX. The accounting of enterprises shall use RMB as the standard currency for accounting.
An enterprise whose business income and expenditure are mainly in currencies other than RMB may select one of the currencies as the standard currency for bookkeeping, but the financial and accounting reports prepared and reported shall be converted into RMB.
The financial and accounting reports submitted by Chinese enterprises established overseas to China shall be converted into RMB.
Article XNUMX. The accounting and bookkeeping of an enterprise shall adopt the debit and credit bookkeeping method.
Article XNUMX. The language of accounting records shall be in Chinese.In ethnic autonomous areas, accounting records may use a common ethnic language in the area at the same time.The accounting records of foreign-invested enterprises, foreign enterprises and other foreign organizations within the territory of the People's Republic of China may use one foreign language at the same time.
Article XNUMX An enterprise shall follow the following basic principles when conducting accounting:
(XNUMX) Accounting shall be based on actual transactions or events, and truthfully reflect the financial status, operating results and cash flow of the enterprise.
(XNUMX) Enterprises should conduct accounting according to the economic substance of transactions or events, and should not only use their legal form as the basis for accounting.
(XNUMX) The accounting information provided by the enterprise shall be able to reflect the financial status, operating results and cash flow of the enterprise to meet the needs of users of accounting information.
(XNUMX) The accounting method of the enterprise shall be consistent with each period before and after, and shall not be changed arbitrarily.If changes are necessary, the content and reasons for the changes, the cumulative impact of the changes, and the reasons why the cumulative impact cannot be reasonably determined, etc., shall be explained in the notes to the financial statements.
(XNUMX) The accounting of the enterprise shall be carried out in accordance with the prescribed accounting treatment methods, and the accounting indicators shall be consistent and comparable.
(XNUMX) The accounting of the enterprise shall be carried out in a timely manner, and shall not be advanced or delayed.
(XNUMX) The accounting and financial accounting reports prepared by the enterprise shall be clear and clear, so as to be easy to understand and use.
(XNUMX) The accounting of an enterprise shall be based on the accrual system.All incomes that have been realized and expenses that have occurred or should be borne in the current period, regardless of whether the money is received or paid, shall be regarded as the income and expenses of the current period; any income and expenses that are not in the current period, even if the money has been received and paid in the current period, shall not be accepted. as current income and expenses.
(XNUMX) When an enterprise conducts accounting, the revenue and its costs and expenses shall be matched with each other, and the various incomes and related costs and expenses in the same accounting period shall be recognized within the accounting period.
(XNUMX) Various properties of the enterprise shall be measured according to the actual cost when they are acquired.Afterwards, if various properties are depreciated, corresponding depreciation reserves shall be accrued in accordance with the provisions of this system.Unless otherwise stipulated by laws, administrative regulations and the unified national accounting system, an enterprise shall not adjust its book value by itself.
(XNUMX) The accounting of an enterprise shall reasonably divide the boundary between revenue expenditure and capital expenditure.Where the benefit of the expenditure only covers the current year (or one business cycle), it shall be regarded as a revenue expenditure; where the benefit of the expenditure covers several fiscal years (or several operating cycles), it shall be regarded as a capital expenditure.
(XNUMX) When conducting accounting, an enterprise shall follow the requirements of the principle of prudence, and shall not overcount assets or income, undercount liabilities or expenses, but shall not make provision for secrets.
(XNUMX) The accounting of an enterprise shall follow the requirements of the principle of materiality. In the process of accounting, transactions or events shall be differentiated by their degree of importance, and different accounting methods shall be adopted.Important accounting matters that have a great impact on assets, liabilities, profit and loss, etc., and thus affect the users of financial accounting reports to make reasonable judgments, must be handled in accordance with the prescribed accounting methods and procedures, and fully and fully included in the financial accounting reports. Accurate disclosure; for minor accounting matters, under the premise of not affecting the authenticity of accounting information and not misleading users of financial accounting reports to make correct judgments, they can be appropriately simplified.
  Chapter II Assets
  Article XNUMX Assets refer to the resources formed by past transactions and events and owned or controlled by the enterprise, which are expected to bring economic benefits to the enterprise.
Article XNUMX The assets of an enterprise shall be divided into current assets, long-term investments, fixed assets, intangible assets and other assets according to their liquidity.
Section XNUMX. Current Assets
Article 1 Current assets refer to assets that can be realized or consumed within a business cycle of one year or more, mainly including cash, bank deposits, short-term investments, receivables and prepayments, prepaid expenses, stock etc.
The term "investment" in this system refers to another asset obtained by an enterprise in order to increase wealth through distribution or to transfer assets to other units for the purpose of seeking other benefits.
Article XNUMX. An enterprise shall set up journals for cash and bank deposits.Register each day in accordance with the order of business occurrence.Bank deposits shall be accounted for in detail according to the names and types of deposits of banks and other financial institutions.
Enterprises with cash and deposits in foreign currencies shall also conduct detailed accounting in RMB and foreign currencies respectively.
The book balance of cash must be consistent with the inventory; the book balance of bank deposits should be checked regularly with bank statements, and a bank deposit balance reconciliation statement should be prepared on a monthly basis.
The book balance referred to in this system refers to the actual book balance of a certain subject, without deducting the items used as the provision for the subject (such as accumulated depreciation, provision for impairment of related assets, etc.).
Article 1. Short-term investments refer to investments that can be realized at any time and that are not intended to be held for more than one year (including one year), including stocks, bonds, funds, etc.Short-term investments should be accounted for according to the following principles:
(XNUMX) Short-term investments shall be measured at the investment cost when they are obtained.The investment cost when the short-term investment is obtained is determined as follows:
1. For short-term investments purchased in cash, the full price actually paid, including taxes, handling fees and other related expenses.The cash dividends that have been declared but not yet received, or the bond interest that has expired but not yet received, included in the actual payment shall be accounted for separately and do not constitute short-term investment costs.
Cash that has been deposited in a securities company but has not yet been invested in short-term is first treated as other monetary funds. When the actual investment is made, the actual amount paid or the amount actually paid minus the declared but not yet received cash dividends or interest paid Interest on bonds that have not yet been received as the cost of short-term investments.
2. The short-term investment invested by the investor shall be regarded as the short-term investment cost according to the value confirmed by the investment parties.
3. For the short-term investment received by the debtor in the form of non-cash assets to pay off the debt, or the short-term investment in exchange for the creditor's rights receivable, the book value of the creditor's rights receivable plus the relevant taxes and fees to be paid shall be regarded as the short-term investment cost.If the accepted short-term investment includes cash dividends that have been declared but not yet received, or bond interest that has expired but not yet received, the book value of the creditor’s rights shall be deducted from the dividends receivable or interest receivable, plus the amount due. The balance after the relevant taxes and fees are paid as short-term investment costs.If the premium is involved, the short-term investment cost of the transfer shall be determined according to the following provisions:
(1) If the premium is received, the book value of the creditor's rights receivable minus the premium, plus the relevant taxes and fees to be paid, shall be regarded as the short-term investment cost;
(2) If the premium is paid, the book value of the creditor's rights receivable plus the premium paid and the relevant taxes payable shall be regarded as the short-term investment cost.
The book value referred to in this system refers to the net amount after deducting the relevant allowance items from the book balance of an item.For example, the book value of the short-term investment is the net amount after deducting the corresponding provision for depreciation from the book balance of the short-term investment.
4. For the short-term investment exchanged in non-monetary transactions, the book value of the exchanged assets plus the relevant taxes and fees payable shall be regarded as the short-term investment cost.If the premium is involved, the short-term investment cost of the exchange shall be determined according to the following provisions:
(1) If the premium is received, the book value of the exchanged assets plus the income to be recognized and the relevant taxes and fees payable minus the premium shall be taken as the short-term investment cost;
(2) If the premium is paid, the book value of the exchanged assets plus the relevant taxes and premiums payable shall be taken as the short-term investment cost.
For short-term investment in exchange of raw materials, if the input tax of the raw material is not deductible, the entry value of the exchanged short-term investment shall also add the non-deductible value-added tax input tax.Inventories, fixed assets, etc. exchanged for raw materials shall be handled in accordance with the same principles.
(XNUMX) Cash dividends or interest on short-term investments shall be written off against the book value of the investment when actually received, except for cash dividends or interests that have been recorded in dividends receivable or interest receivables.
(XNUMX) At the end of the period, the enterprise shall measure the short-term investment at the lower of the cost and the market price, and shall make provision for the depreciation of the short-term investment for the difference between the market price and the cost.
The short-term investment depreciation reserves accrued by the enterprise shall be calculated separately, and in the balance sheet, the short-term investment projects shall be reflected in the net amount after deducting their depreciation reserves.
(XNUMX) When disposing of a short-term investment, the difference between the book value of the short-term investment and the actual price obtained shall be regarded as the current investment profit and loss.
Entrusted loans of enterprises shall be accounted for as short-term investments.However, interest on entrusted loans shall be accrued on schedule and included in profit and loss; if the interest accrued on schedule by an enterprise cannot be recovered by the interest payment period, the accrual of interest shall be stopped and the originally accrued interest shall be reversed.At the end of the period, the enterprise's entrusted loans shall make corresponding impairment reserves according to the requirements of asset impairment.
Article XNUMX Receivables and prepayments refer to various creditor's rights incurred by an enterprise in the daily production and operation process, including: receivables (including notes receivable, accounts receivable, other receivables) and prepayments accounts, etc.
Article XNUMX. Receivables and prepayments shall be accounted for according to the following principles:
(XNUMX) Accounts receivable and prepayments shall be recorded according to the actual amount incurred, and detailed accounts shall be set up according to the names of current accounts, and detailed accounting shall be carried out.
(XNUMX) Interest-bearing receivables should be added to the book balance at the end of the period based on the principal (or face value) and the determined interest rate, and recognized as interest income and included in the current profit and loss.
(XNUMX) Notes receivable that cannot be recovered at maturity shall be transferred to accounts receivable according to their book balance, and no interest shall be accrued.
(XNUMX) Where the enterprise and the debtor carry out debt restructuring, the following provisions shall be followed:
1. If the debtor repays with cash that is lower than the book value of the creditor's rights receivable during the debt restructuring, the difference between the actual amount received by the enterprise and the book value of the creditor's rights receivable shall be included in the current non-operating expenses.
2. When paying off debts with non-cash assets, the book value of the receivables should be used as the book value of the transferred non-cash assets.
If multiple non-cash assets are accepted, the book value of the receivable credit should be distributed according to the proportion of the fair value of the accepted non-cash assets to the total fair value of the non-cash assets, and the distributed value should be regarded as the accepted value. The entry value of each non-cash asset.
3. If the creditor's rights are converted into equity, the book value of the creditor's rights receivable shall be regarded as the book value of the transferred equity.
If multiple equities are involved, the book value of the receivable creditor's rights shall be allocated according to the proportion of the fair value of each equities to the total fair value of the equities, and the distributed value shall be regarded as the book value of the received equities.
4. If the debt is repaid by modifying other debt conditions, the difference between the future receivable amount and the book value of the creditor's rights receivable shall be included in the current non-operating expenses; if the modified debt terms involve contingent gains, the contingent gains shall not be Should be included in future receivables.When the contingent income is actually received, it shall be included in the non-operating income received in the current period.
If after the modification of other debt conditions, the amount receivable in the future is equal to or greater than the book balance of the creditor's rights receivable before the restructuring, no accounting treatment shall be made during the debt restructuring, but it shall be registered in the reference book.The creditor's rights receivable after the modification of the debt conditions shall be accounted for according to the general creditor's rights receivable stipulated in this system.
The debt restructuring referred to in this system refers to matters in which the creditor agrees with the debtor to modify the debt conditions according to the agreement reached with the debtor or the court's ruling.Contingent income refers to the income that occurs according to the occurrence of certain events in the future, and the occurrence of future events is uncertain.
(XNUMX) The enterprise shall make provision for bad debts for receivables (excluding notes receivable, the same below) at the end of the period.
The provision for bad debts shall be accounted for separately, and the receivables shall be reflected in the balance sheet after deducting the provision for bad debts that have been accrued.
Article 1 Deferred expenses refer to the expenses that the enterprise has already paid, but should be borne by the current period and subsequent periods respectively, and the amortization period is within 1 year (including XNUMX year), such as low-value consumables Amortization, prepaid insurance premiums, one-time purchase of tax stamps and the amount to be apportioned for large one-time purchases of stamp duty, etc.
Deferred expenses shall be amortized evenly by installments within one year according to their benefit period, and included in costs and expenses.If an amortized expense can no longer benefit the enterprise, its amortized value shall be transferred to the current cost and expenses in one go, and shall not be left for amortization in subsequent periods.
Expenses to be prepaid should be set up detailed accounts according to the type of expenses, and detailed accounting should be carried out.
Article XNUMX "Inventory" refers to the materials or materials that an enterprise holds for sale in the daily production and operation process, or is still in the production process, or will be consumed in the process of production or provision of labor services, including various materials, Commodities, work-in-progress, semi-finished products, finished products, etc.Inventories should be accounted for according to the following principles.
(XNUMX) When the inventory is obtained, it shall be recorded according to the actual cost.Actual costs are determined as follows:
1. For the purchased inventory, the purchase price plus the transportation fee, loading and unloading fee, insurance fee, packaging fee, storage fee and other expenses, reasonable loss during transportation, selection and sorting expenses before storage, and taxes that should be included in the cost according to regulations and other expenses, as actual costs.
Commodities purchased by commodity distribution enterprises shall be included in the cost of commodities according to the purchase price and the tax that should be included in the cost of commodities according to regulations, as the actual cost. Reasonable loss, selection and sorting expenses before storage, etc., are directly included in the current profit and loss.
2. The self-made inventory shall be regarded as the actual cost according to the actual expenses in the manufacturing process.
3. For inventories entrusted to be processed by external entities, the actual cost of raw materials or semi-finished products, processing fees, transportation fees, loading and unloading fees, insurance fees, etc., as well as taxes that should be included in the cost according to regulations, shall be taken as the actual cost.
For commodities processed by commodity circulation enterprises, the actual cost shall be the original purchase price of the commodities, processing expenses and taxes that should be included in the cost according to regulations.
4. Inventories invested by investors shall be regarded as the actual cost according to the value confirmed by the investors.
5. The actual cost of the donated inventory shall be determined according to the following provisions:
(1) If the donor provides relevant documents (such as invoices, customs declarations, and relevant agreements), the actual cost shall be the amount indicated on the documents plus the relevant taxes and fees to be paid.
(2) If the donor does not provide relevant credentials, its actual cost shall be determined in the following order:
① If there is an active market for the same or similar inventory, the estimated amount based on the market price of the same or similar inventory plus the relevant taxes and fees payable shall be taken as the actual cost;
②If there is no active market for the same or similar inventory, the present value of the expected future cash flow of the donated inventory shall be used as the actual cost:
6. The debtor accepted by the enterprise obtains the inventory by means of non-cash assets to pay off the debt, or exchanges the receivable creditor's rights for the inventory.The actual cost is the difference between the book value of the creditor's rights receivable minus the deductible value-added tax input tax, plus the relevant taxes that should be paid.If the premium is involved, the actual cost of the transferred inventory shall be determined according to the following provisions:
(1) If the premium is received, the actual cost shall be the book value of the creditor's rights receivable minus the deductible value-added tax input tax and premium, plus the relevant taxes and fees that should be paid;
(2) If the premium is paid, the actual cost shall be the book value of the creditor's rights receivable minus the deductible value-added tax input tax, plus the premium paid and the relevant taxes that should be paid.
7. For inventories exchanged in non-monetary transactions, the actual cost is the difference between the book value of the exchanged assets minus the deductible value-added tax input tax, plus the relevant taxes that should be paid.If the premium is involved, the actual cost of the exchanged inventory shall be determined according to the following provisions:
(1) If the premium is received, the difference after deducting the deductible value-added tax input tax from the book value of the exchanged assets, plus the income that should be recognized and the relevant taxes and fees that should be paid.The balance after deducting the premium is taken as the actual cost;
(2) If the premium is paid, the difference after deducting the deductible value-added tax input tax from the book value of the exchanged assets, plus the relevant taxes and premiums payable, shall be regarded as the actual cost.
8. Excess inventory shall be regarded as the actual cost according to the market price of the same or similar inventory.
(XNUMX) For an enterprise that conducts inventory accounting according to the planned cost (or selling price, the same below), the difference between the planned cost and the actual cost of the inventory shall be accounted for separately.
(XNUMX) For inventories that need to be used or delivered, the actual cost shall be determined by the first-in first-out method, the weighted average method, the moving average method, the individual pricing method or the last-in-first-out method, etc.; , it should carry forward the cost difference that it should bear on schedule, and adjust the planned cost to the actual cost.
Low-value consumables and revolving packaging materials, revolving materials, etc. shall be amortized at the time of receipt.
(XNUMX) Inventories shall be counted regularly, at least once a year.If the inventory results are inconsistent with the book records, the reasons should be identified before the end of the period, and according to the management authority of the enterprise, after the approval of the general meeting of shareholders or the board of directors, or the meeting of managers (plant directors) or similar institutions, the settlement should be completed before the end of the period.Inventories with excess inventory shall be written off against current management expenses; inventories with deficit shall be included in current management expenses after deducting the value of indemnities and residual materials from the culprit or insurance company, and those belonging to extraordinary losses shall be included in non-operating expenses .
Inventory surplus or inventory deficit, if it has not been approved before the closing of the period-end, shall first be dealt with in accordance with the above provisions when providing external financial and accounting reports, and an explanation shall be made in the notes to the accounting statements; If the processed amounts are inconsistent, the opening balance of the relevant items in the financial statements should be adjusted according to the difference.
(XNUMX) The inventories of the enterprise shall be measured at the lower of cost and net realizable value at the end of the period, and provision for inventory depreciation shall be made for the difference between the net realizable value and the cost of inventories.
In the balance sheet, inventory items are reflected on the net after deducting the provision for impairment of inventories.
Section XNUMX. Long-term investment
Article 1. Long-term investments refer to investments other than short-term investments, including various equity investments that are prepared to be held for more than one year (excluding one year), bonds that cannot be realized or are not prepared to be realized at any time, Long-term debt investments and other long-term investments.
Long-term investments should be accounted for separately and reflected in a separate item in the balance sheet.
Article XNUMX. Long-term equity investments shall be calculated according to the following principles:
(XNUMX) The long-term equity investment shall be recorded at the initial investment cost when it is obtained.The initial investment cost is determined as follows:
1. For the long-term equity investment purchased in cash, the total price actually paid (including taxes, handling fees and other related expenses paid) shall be regarded as the initial investment cost; the actual price paid includes cash dividends that have been announced but not yet received, The initial investment cost is the difference between the actual payment and the cash dividends that have been declared but not received.
2. For the long-term equity investment obtained by the debtor in the form of paying off debts with non-cash assets, or the long-term equity investment in exchange for the debtor's rights receivable, the book value of the debtor's rights receivable plus the relevant taxes and fees to be paid shall be used as the initial investment cost.If the premium is involved, the initial investment cost of the transferred long-term equity investment shall be determined according to the following provisions:
(1) If the premium is received, the book value of the creditor's rights receivable minus the premium, plus the relevant taxes and fees to be paid shall be taken as the initial investment cost;
(2) If the premium is paid, the book value of the creditor's rights receivable plus the premium paid and the relevant taxes payable shall be taken as the initial investment cost.
3. For long-term equity investments exchanged in non-monetary transactions, the initial investment cost shall be the book value of the exchanged assets plus the relevant taxes payable.If the premium is involved, the initial investment cost of the long-term equity investment in exchange shall be determined according to the following provisions:
(1) If the premium is received, the initial investment cost shall be the book value of the exchanged assets plus the recognized income and relevant taxes payable minus the premium;
(2) If the premium is paid, the book value of the exchanged assets plus the relevant taxes and premiums payable shall be taken as the initial investment cost.
4. For long-term equity investment obtained through administrative allocation, the book value of the allocated unit shall be used as the initial investment cost.
(20) The long-term equity investment of an enterprise shall be accounted for by the cost method or the equity method according to different circumstances.If the enterprise has no control, joint control or significant influence over the investee, the long-term equity investment shall be accounted for using the cost method; if the enterprise has control, joint control or significant influence over the investee, the long-term equity investment shall be accounted for using the equity method.Under normal circumstances, if an enterprise's investment in other units accounts for 20% or more of the unit's total voting capital, or if the investment is less than 20% but has a significant impact, the equity method should be used for accounting.If the investment of the enterprise in other units accounts for less than 20% of the total voting capital of the unit, or the investment in other units accounts for 20% or more of the total voting capital of the unit, but does not have a significant impact, the cost method shall be used for accounting. .
(XNUMX) When the cost method is adopted for accounting, except for additional investment, the conversion of cash dividends or profits that should be shared into investment or the recovery of investment, the book value of long-term equity investment should generally remain unchanged.Profits or cash dividends declared by the investee as the current investment income.The investment income recognized by the enterprise is limited to the distribution of the accumulated net profit generated by the investee after accepting the investment, and the part of the profit or cash dividend declared by the investee that exceeds the above-mentioned amount shall be regarded as the initial investment cost. The recovery of the investment will be written off against the book value of the investment.
(XNUMX) When the equity method is used for accounting, the investment is initially measured at the initial investment cost, and the difference between the initial investment cost of the investing enterprise and the share of the owner's equity of the invested entity that should be enjoyed is treated as the equity investment difference and amortized on average over a certain period of time. , included in profit or loss.
The amortization period of the equity investment difference, if the investment period is stipulated in the contract, shall be amortized according to the investment period.If the investment period is not specified in the contract, the difference between the initial investment cost and the share of the owner's equity of the investee that should be enjoyed shall be amortized over a period not exceeding 10 years; the initial investment cost is less than the share of the owner's equity of the investee that should be enjoyed. The difference is amortized over a period of not less than 10 years.
When the equity method is used for accounting, the enterprise shall, after obtaining the equity investment, share or share the share of the net profit or the net loss incurred by the investee in the current year (not belonging to the net profit of the investing enterprise as stipulated by laws, regulations or the articles of association of the company). Except for profits, such as contract profits paid by contracted operation enterprises, employee incentives and welfare funds that foreign-invested enterprises accrue as liabilities according to a certain percentage of net profit, etc.), the book value of the investment is adjusted and it is regarded as the current investment profit and loss.The enterprise shall calculate its share according to the profits or cash dividends declared to be distributed by the invested unit, and reduce the book value of the investment.When an enterprise recognizes the net loss incurred by the investee, the book value of the investment shall be written down to zero; if the investee realizes net profit in subsequent periods, the investee shall calculate the share of the profit in excess of the share of the unrecognized loss. After the amount is exceeded, the book value of the investment shall be restored according to the amount exceeding the unrecognized loss sharing amount.
When an enterprise calculates and adjusts the book value of the investment and recognizes the investment profit and loss according to the net profit and loss of the investee, it shall be based on the net profit and loss after acquiring the equity of the investee.
For other changes in the owner's equity of the investee other than net profit or loss, the book value of the investment shall also be adjusted according to the specific circumstances.
(XNUMX) The accounting of long-term equity investments due to additional investment and other reasons is changed from the cost method to the equity method. The value shall be regarded as the initial investment cost, and the difference between the initial investment cost and the share of the owner's equity of the invested entity shall be regarded as the equity investment difference, and shall be amortized in accordance with the provisions of this system and included in the profit and loss.
When the enterprise no longer has control, joint control or significant influence over the investee due to reasons such as reduction of investment, it shall suspend the use of the equity method for accounting, and use the cost method instead, and use the book value of the investment as the new investment cost.Afterwards, when the investee declares profit distribution or cash victory, it belongs to the part that has been recorded in the book value of the investment, which is taken as the recovery of the new investment cost and offsets the book value of the investment.
(XNUMX) The enterprise changes the investment purpose and transfers the short-term investment to long-term investment.It should be carried forward at the lower of the cost of the short-term investment and the market value, and the value determined therefrom shall be used as the initial investment cost of the long-term investment.Long-term investments to be disposed of are not adjusted to short-term investments, and are accounted for as long-term investments to be disposed of.
(XNUMX) When disposing of equity investment, the difference between the book value of the investment and the actual price obtained shall be regarded as the current investment profit and loss.
Article XNUMX. Long-term debt investments shall be accounted for according to the following principles:
(XNUMX) When a long-term debt investment is acquired, the actual cost at the time of acquisition shall be regarded as the initial investment cost.The initial investment cost is determined as follows:
1. For the long-term debt investment purchased in cash, the initial investment cost is the total price actually paid (including taxes, handling fees and other related expenses) minus the debt interest that has expired but has not been received.If the amount of tax, handling fee and other related expenses paid is relatively small, it can be directly included in the current financial expenses and not included in the initial investment cost.
2. The long-term creditor's rights investment accepted by the debtor in the form of non-cash assets to pay off debts, or the long-term creditor's rights investment with receivable creditor's rights, shall be calculated according to the book value of the receivable creditor's rights plus the relevant taxes and fees payable. Initial investment cost.If the premium is involved, the initial investment cost of the long-term debt investment in exchange shall be determined according to the following provisions:
(1) If the premium is received, the book value of the creditor's rights receivable minus the premium, plus the relevant taxes and fees to be paid shall be taken as the initial investment cost;
(2) If the premium is paid, the book value of the creditor's rights receivable plus the premium paid and the relevant taxes payable shall be taken as the initial investment cost.
3. For the long-term debt investment exchanged in non-monetary transactions, the book value of the exchanged assets plus the relevant taxes payable shall be taken as the initial investment cost.If the premium is involved, the initial investment cost of the long-term debt investment in exchange shall be determined according to the following provisions:
(1) If the premium is received, the initial investment cost shall be the book value of the exchanged assets plus the recognized income and relevant taxes payable minus the premium;
(2) If the premium is paid, the book value of the exchanged assets plus the relevant taxes and premiums payable shall be taken as the initial investment cost.
(XNUMX) For long-term debt investments, interest income shall be calculated and recognized on a regular basis according to the par value and the coupon rate.
The difference between the initial investment cost of long-term bond investment minus the bond interest that has reached the interest payment period but not yet received, the outstanding bond interest and relevant taxes included in the initial investment cost, and the face value of the bond, is regarded as the bond premium or discount ; The premium or discount of the bond is amortized when the relevant bond interest income is recognized during the duration of the bond.The amortization method can be either straight-line method or effective interest rate method.
(XNUMX) For enterprises that hold convertible corporate bonds, the convertible corporate bonds shall be treated as general bond investments before they are purchased and converted into shares.When an enterprise exercises the conversion right to convert the bond investment held by it into shares, the balance after deducting the cash received from its book value shall be taken as the initial investment cost of the equity investment.
(XNUMX) When disposing of long-term debt investment, the difference between the price actually obtained and the book value of the long-term debt investment shall be regarded as the current investment profit and loss.
Article XNUMX. The long-term investment of an enterprise shall be measured at the end of the period according to the lower of its book value and the recoverable amount. For the difference between the recoverable amount and the book value, a provision for impairment of long-term investment shall be made.
In the balance sheet, long-term investment projects should be reflected in the net amount after deducting long-term investment impairment provision.
Section XNUMX. Fixed Assets
Article 1 "Fixed assets" refer to houses, buildings, machines, machinery, means of transport, and other equipment, appliances, tools, etc. related to production and operation, which are used by an enterprise for more than one year.Items not belonging to the main equipment for production and operation, with a unit value of more than 2000 yuan and a useful life of more than 2 years, shall also be regarded as fixed assets.
Article XNUMX An enterprise shall, according to the definition of fixed assets and in combination with the specific situation of the enterprise, formulate the catalogue of fixed assets, classification method, depreciation period and depreciation method for each type or item of fixed assets suitable for the enterprise. basis for asset accounting.
The catalogue of fixed assets, the classification method, the estimated useful life of each category or item of fixed assets, the estimated net residual value, and the depreciation method, etc., formulated by the enterprise shall be compiled into a book, and approved by the general meeting of shareholders or the board of directors, or the manager ( Approved by the factory director) meeting or similar institutions, submitted to the relevant parties for the record in accordance with the provisions of laws and administrative regulations, and at the same time kept at the location of the enterprise for investors and other relevant parties to consult.The catalog, classification method, estimated net residual value, estimated useful life, depreciation method, etc. of the fixed assets that the enterprise has determined and submitted to the outside world, or kept at the location of the enterprise, shall not be changed arbitrarily once determined. The procedures shall be submitted to the relevant parties for the record after approval, and shall be explained in the notes to the financial statements.
Tools and appliances that are not managed as fixed assets are accounted for as low-value consumables.
Article XNUMX When a fixed asset is acquired, it shall be recorded at the cost at the time of acquisition.The cost at the time of acquisition includes the purchase price, import duties, transportation and insurance and other related expenses, as well as the necessary expenses before the fixed asset reaches the intended use state.The cost of acquisition of fixed assets shall be determined according to the specific circumstances:
(XNUMX) For the purchased fixed assets that can be used without going through the construction process, the actual purchase price, packaging fee, transportation fee, installation cost, and relevant taxes paid shall be taken as the entry value.
The value-added tax refunded by the tax authority for the purchase of domestic equipment by a foreign-invested enterprise is offset against the recorded value of the fixed assets.
(XNUMX) For self-constructed fixed assets, all expenditures incurred before the construction of the asset reaches the intended usable state shall be regarded as the entry value.
(XNUMX) For the fixed assets invested by investors, the value confirmed by the investment parties shall be regarded as the entry value.
(XNUMX) For fixed assets under financing lease, the lower of the original book value of the leased asset on the lease start date and the present value of the minimum lease payment shall be taken as the entry value.
The minimum lease payments referred to in this system refer to the various payments (excluding contingent rents and performance costs) that the enterprise (the lessee) should pay or may be required to pay during the lease term, plus the amount of the payments made by the enterprise (the lessee). person) or the residual value of the assets guaranteed by a third party related to it.However, if the entity (the lessee) has an option to purchase the leased asset, the purchase price entered into is expected to be much lower than the fair value of the leased asset at the time the option is exercised, so on the lease commencement date it can be reasonably determined that the entity (the lessee) will would exercise this option, the purchase price shall also be included.Among them, the residual value of assets refers to the estimated fair value of the leased assets at the expiry of the lease term on the lease commencement date.
When an enterprise (lessee) calculates the present value of the minimum lease payment, if it knows the lessor’s implicit interest rate in the lease, it should use the lessor’s implicit interest rate as the discount rate; otherwise, the interest rate specified in the lease contract should be used as the discount rate. rate.If the lessor's interest rate implicit in the lease and the interest rate stipulated in the lease contract cannot be known, the bank loan interest rate of the same period shall be used as the discount rate.
If the proportion of financial lease assets in the total assets of the enterprise is equal to or lower than 30%, on the lease commencement date, the enterprise may also use the minimum lease payment amount as the entry value of fixed assets.
(XNUMX) If reconstruction or expansion is carried out on the basis of the original fixed assets, the book value of the original fixed assets, plus the expenses incurred before the asset reaches the intended usable state due to the reconstruction and expansion, minus the reconstruction and expansion The variable income that occurs in the process is regarded as the entry value.
(XNUMX) For fixed assets obtained by the debtor in the form of paying off debts with non-cash assets or exchanged for fixed assets with receivables, the book value of the receivables plus the relevant taxes and fees to be paid shall be used as the entry value.If the premium is involved, the book value of the transferred fixed assets shall be determined according to the following provisions:
1. If the premium is received, the book value of the creditor's rights receivable minus the premium, plus the relevant taxes and fees to be paid shall be taken as the entry value;
2. If the premium is paid, the book value of the creditor's rights receivable plus the premium paid and the relevant taxes and fees to be paid shall be taken as the entry value.
(XNUMX) For the fixed assets exchanged in non-monetary transactions, the book value of the exchanged assets plus the relevant taxes and fees payable shall be regarded as the entry value.If the premium is involved, the entry value of the exchanged fixed assets shall be determined according to the following provisions:
1. If the premium is received, the book value of the exchanged assets plus the income to be recognized and the relevant taxes to be paid minus the premium will be used as the entry value;
2. If the premium is paid, the book value of the exchanged assets plus the relevant taxes and premiums payable shall be taken as the entry value.
(XNUMX) For the fixed assets donated, their entry value shall be determined according to the following provisions:
1. If the donor provides the relevant vouchers, the amount indicated on the vouchers plus the relevant taxes to be paid shall be regarded as the entry value.
2. If the donor does not provide relevant credentials, its entry value shall be determined in the following order:
(1) If there is an active market for the same or similar fixed assets, the estimated amount based on the market price of the same or similar fixed assets, plus the relevant taxes and fees to be paid, shall be taken as the entry value;
(2) If there is no active market for the same or similar fixed assets, the present value of the estimated future cash flow of the donated fixed assets shall be regarded as the entry value.
3. If the donated old fixed asset, the value confirmed according to the above method, minus the value loss estimated according to the newness of the asset, the balance is taken as the entry value.
(XNUMX) For fixed assets with excess inventory, the market price of the same or similar fixed assets, minus the estimated value loss according to the age of the asset, shall be taken as the entry value.
(XNUMX) For the fixed assets transferred in without compensation upon approval, the book value of the transferred unit plus the transportation fee, installation fee and other related expenses incurred shall be regarded as the entry value.
The entry value of fixed assets shall also include the deed tax, cultivated land occupation tax, vehicle purchase tax and other related taxes paid by the enterprise for obtaining the fixed assets.
Article XNUMX. The various materials prepared by the enterprise for the construction in progress shall be regarded as the actual cost according to the actual paid purchase price, value-added tax, transportation fee, insurance premium and other related expenses, and shall be carried out according to the types of various special materials. Detailed accounting.
If the remaining engineering materials after the completion of the project are transferred to the inventory materials of the enterprise, they shall be transferred to the inventory materials of the enterprise according to their actual cost or planned cost.If the value-added tax input tax can be deducted, the actual cost or planned cost after deducting the value-added tax input tax shall be transferred to the inventory materials of the enterprise.
The difference after deducting the compensation from the insurance company and the negligent for the surplus, deficit, scrapped or damaged construction materials, if the construction project has not been completed, shall be included in or offset against the cost of the construction project; Include current non-operating income and expenditure.
Article XNUMX The projects under construction of enterprises include pre-construction preparations, construction projects under construction, installation projects, technical renovation projects, major repair projects, etc.An enterprise with a large number of engineering projects and a large amount of engineering expenditure shall calculate by item according to the nature of the engineering project.
Construction-in-progress shall determine the cost of the project according to the actual expenditure, and calculate it separately.
Article XNUMX. The self-operated projects of an enterprise shall be measured according to the direct materials, direct wages, direct mechanical construction costs, etc.; for enterprises that adopt the method of outsourcing projects, the measurement shall be made according to the project price that should be paid, etc.For the equipment installation project, the project cost shall be determined according to the value of the installed equipment, the project installation cost, the expenses incurred in the project trial operation, etc.
Article XNUMX. The net expenditures incurred due to the trial operation before the project reaches the intended usable state shall be included in the project cost.The cost of the products that are formed during the trial operation and can be sold to the outside world before the construction project under construction of the enterprise reaches the intended usable state shall be included in the cost of the construction in progress. The actual sales revenue may be offset against the project cost according to the estimated selling price.
Article XNUMX. If a single or unit project is scrapped or damaged in a construction in progress, the net loss after deducting the value of the residual material and indemnity from the culprit or insurance company shall be included in the project cost of continued construction; if it is caused by extraordinary reasons If the project is scrapped or damaged, or all the projects under construction are scrapped or damaged, the net loss shall be directly included in the current non-operating expenses.
Article XNUMX. If the constructed fixed assets have reached the expected usable state, but the final accounts have not yet been completed, they shall, according to the project budget, cost or actual project cost, etc., be estimated according to the project budget, cost or actual cost of the project from the date of reaching the expected usable state. The value is transferred to fixed assets, and the depreciation of fixed assets is accrued in accordance with the provisions of this system on accrual of depreciation of fixed assets.Adjustments will be made after the completion and final accounting procedures are completed.
Article XNUMX. The following fixed assets shall be depreciated:
(XNUMX) houses and buildings;
(XNUMX) The machinery and equipment, instruments and meters, means of transport, tools and utensils in use;
(XNUMX) Fixed assets that are temporarily out of use or out of service for major repairs;
(XNUMX) Fixed assets leased in by finance lease and leased out by way of operating lease.
For fixed assets that have reached the expected usable state and should be depreciated, if the final accounting procedures are completed within the year, the original estimated value shall be adjusted according to the actual cost, and the depreciation amount that has been accrued shall be adjusted as the cost and expense of the current month.If the final accounts have not been completed within the year, it shall be temporarily estimated and recorded according to the estimated value, and depreciation shall be accrued. At the same time, each item of retained earnings at the beginning of the year is adjusted.
Article XNUMX. The following fixed assets shall not be depreciated:
(XNUMX) Unused or unnecessary fixed assets other than houses and buildings;
(XNUMX) Fixed assets leased in by way of operating lease;
(XNUMX) Fixed assets that have been fully depreciated and continue to be used;
(XNUMX) Land that is separately appraised as a fixed asset according to regulations.
Article XNUMX An enterprise shall reasonably determine the estimated useful life and estimated net residual value of the fixed assets according to the nature and consumption method of the fixed assets, and choose a reasonable method of depreciation of the fixed assets according to the development of science and technology, the environment and other factors. According to the management authority, approved by the general meeting of shareholders or the board of directors, or the meeting of managers (directors) or similar institutions, it is used as the basis for depreciation.At the same time, it shall be submitted to the relevant parties for the record in accordance with the provisions of laws and administrative regulations, and shall be kept at the location of the enterprise for investors and other relevant parties to consult.The estimated useful life, estimated net residual value, depreciation method, etc. of the relevant fixed assets that the enterprise has determined and submitted to the outside world, or prepared at the place where the enterprise is located, cannot be changed arbitrarily once determined. Submit to the relevant parties for the record, and explain in the notes to the financial statements.
The depreciation method of fixed assets may adopt the straight-line method, the workload method, the total number of years method, the double declining balance method, etc.Once the depreciation method is determined, it cannot be changed at will.If changes are required, they should be explained in the notes to the financial statements.
If an enterprise adjusts the value of fixed assets due to renovation and other reasons, it shall accrue depreciation according to the selected depreciation method based on the adjusted value, estimated useful life and net residual value.
For the donated old fixed assets, the enterprise shall accrue depreciation according to the confirmed fixed asset book value, estimated useful life, and estimated net residual value according to the selected depreciation method.
For fixed assets under financing lease, the depreciation policy consistent with that of self-accrued depreciable assets shall be adopted.If it can be reasonably determined that the ownership of the leased asset will be obtained at the expiration of the lease term, depreciation shall be accrued within the remaining useful life of the leased asset; Depreciation is accrued over the shorter of the useful life.
Article XNUMX. Enterprises should generally depreciate on a monthly basis. For fixed assets added in the current month, depreciation will not be provided in the current month, but depreciation will be provided from the next month; depreciation.
After the fixed assets have been fully depreciated, no matter whether they can continue to be used or not, they will no longer be depreciated; the fixed assets that are scrapped ahead of time will not be depreciated.The so-called full depreciation refers to the total amount of depreciation that should be paid for the fixed asset.The total depreciation to be provided is the original price of the fixed asset minus the estimated residual value plus the estimated disposal cost.
Article XNUMX. An enterprise shall carry out major repairs on fixed assets on a regular basis, and the expenses for major repairs can be calculated by means of accrual or amortization.If the overhaul expenses are accrued, the estimated overhaul expenses shall be accrued in each period evenly during the interval between the two major repairs, and shall be included in the relevant costs and expenses; The cost of overhaul will be amortized evenly before the next overhaul, and included in the relevant costs and expenses.
The daily repair costs of fixed assets are directly included in the current cost and expenses.
Article XNUMX. The net profit or loss from the liquidation of fixed assets due to sales, scrapping or damage, etc., shall be included in the current non-operating income and expenditure.
Article XNUMX. An enterprise shall conduct an on-site inventory of its fixed assets on a regular basis or at least once a year.For the fixed assets that are in excess, depleted or damaged, the reasons shall be found out, a written report shall be prepared, and according to the management authority of the enterprise, after the approval of the general meeting of shareholders or the board of directors, or the meeting of managers (factory directors) or similar institutions, it shall be reported at the end of the period. Processed before checkout.Fixed assets with excess inventory shall be included in non-operating income of the current period; fixed assets with inventory loss or damage shall be included in non-operating expenses of the current period after deducting the value of indemnities and residual materials from the culprit or insurance company.
Such as inventory surplus, inventory deficit or damaged fixed assets, which have not been approved before the period-end closing, should be handled in accordance with the above provisions when providing financial and accounting reports to the outside world, and an explanation should be made in the notes to the accounting statements; If the amount is inconsistent with the processed amount, the opening balance of the relevant items in the accounting statement should be adjusted according to the difference.
Article XNUMX: Enterprises shall go through accounting procedures for the purchase, construction, sale, liquidation, scrapping, and internal transfer of fixed assets, and shall set up detailed accounts of fixed assets (or fixed asset cards) for detailed accounting.
Article XNUMX The fixed assets of an enterprise shall be measured at the lower of the book value and the recoverable amount at the end of the period. For the difference between the recoverable amount and the book value, a provision for impairment of fixed assets shall be made.
In the balance sheet, the provision for impairment of fixed assets should be reflected as a deduction of net fixed assets.
Section XNUMX Intangible Assets and Other Assets
Article XNUMX Intangible assets refer to non-monetary long-term assets without physical form held by enterprises for the production of commodities or the provision of labor services, leased to others, or for management purposes.Intangible assets are divided into identifiable intangible assets and unidentifiable intangible assets.Identifiable intangible assets include patent rights, non-patented technologies, trademark rights, copyrights, land use rights, etc.; unrecognizable intangible assets refer to goodwill.
The goodwill created by the enterprise and other items that do not meet the recognition conditions for intangible assets cannot be regarded as intangible assets.
Article XNUMX. When an enterprise's intangible assets are acquired, they shall be measured at actual cost.The actual cost at the time of acquisition shall be determined as follows:
(XNUMX) For the purchased intangible assets, the actual cost shall be regarded as the actual cost.
(XNUMX) For intangible assets invested by investors, the actual cost shall be the value confirmed by the investors.However, for the intangible assets invested by investors for the initial issuance of shares, the actual cost should be the book value of the intangible assets at the investor.
(XNUMX) For intangible assets acquired by the debtor in the form of non-cash assets to pay off debts accepted by the enterprise, or intangible assets exchanged for creditor's rights receivable, the book value of the creditor's rights receivable plus the relevant taxes and fees to be paid shall be regarded as the actual cost.If the premium is involved, the actual cost of the transferred intangible assets shall be determined according to the following provisions:
1. If the premium is received, the book value of the creditor's rights receivable minus the premium, plus the relevant taxes and fees to be paid, shall be taken as the actual cost;
2. If the premium is paid, the book value of the creditor's rights receivable plus the premium paid and the relevant taxes and fees payable shall be regarded as the actual cost.
(XNUMX) For the intangible assets exchanged in non-monetary transactions, the actual cost shall be the book value of the exchanged assets plus the relevant taxes and fees payable.If the premium is involved, the actual cost of the exchanged intangible assets shall be determined according to the following provisions:
1. If the premium is received, the actual cost shall be the book value of the exchanged assets plus the income to be recognized and the relevant taxes and fees payable minus the premium;
2. If the premium is paid, the book value of the exchanged assets plus the relevant taxes and premiums payable shall be taken as the actual cost.
(XNUMX) The actual cost of intangible assets accepted for donation shall be determined according to the following provisions:
1. If the donor provides relevant vouchers, the actual cost shall be the amount indicated on the voucher plus the relevant taxes and fees to be paid.
2. If the donor does not provide relevant credentials, its actual cost shall be determined in the following order:
(1) If there is an active market for the same or similar intangible assets, the estimated amount based on the market price of the same or similar intangible assets, plus the relevant taxes and fees to be paid, shall be regarded as the actual cost;
(2) If there is no active market for the same or similar intangible assets, the present value of the estimated future cash flow of the donated intangible assets shall be regarded as the actual cost.
Article XNUMX. For intangible assets developed by oneself and obtained through legal procedures, the actual cost of the intangible assets shall be the registration fees, lawyer fees and other expenses incurred when obtained in accordance with the law.The material costs incurred in the research and development process, the wages and welfare fees of the directly involved developers, the rent and borrowing costs incurred in the development process, etc., are directly included in the current profit and loss.
The research and development expenses that have been included in the expenses of each period shall not be capitalized when the intangible assets are successfully obtained and the rights are applied for in accordance with the law.
Article XNUMX. Intangible assets shall be amortized evenly in stages within the estimated useful life from the month of acquisition, and included in profit and loss.If the estimated useful life exceeds the beneficial life stipulated in the relevant contract or the effective life stipulated by law, the amortization life of the intangible asset shall be determined according to the following principles:
(XNUMX) If the contract stipulates the beneficial period but the law does not stipulate the effective period, the amortization period shall not exceed the beneficial period stipulated in the contract;
(XNUMX) If the contract does not stipulate the beneficial period but the legal period stipulates the effective period, the amortization period shall not exceed the legal effective period;
(XNUMX) If the contract stipulates the beneficial period and the law also stipulates the effective period, the amortization period shall not exceed the shorter of the beneficial period and the effective period.
If the contract does not stipulate the beneficial period, and the law does not stipulate the effective period, the amortization period shall not exceed 10 years.
Article XNUMX. The land use rights purchased by an enterprise or acquired by paying land transfer fees shall be accounted for as intangible assets before development or construction of self-use projects, and shall be amortized in stages according to the period stipulated in this system.When a real estate development enterprise develops commercial housing, it shall transfer all the book value of the land use right to the development cost; when the enterprise uses the land to build a project for its own use, the book value of the land use right shall be transferred to the cost of construction in progress.
Article XNUMX. When an enterprise sells an intangible asset, the difference between the proceeds and the book value of the intangible asset shall be included in the current profit and loss.
For the intangible assets leased out by the enterprise, the rental income obtained shall be recognized in accordance with the relevant income recognition principles of this system; at the same time, the relevant expenses of the leased intangible assets shall be recognized.
Article XNUMX. Intangible assets shall be measured at the lower of book value and recoverable amount. For the difference between recoverable amount and book value, provision for impairment of intangible assets shall be made.
In the balance sheet, the item of intangible assets shall be reflected in the net amount after deducting the provision for impairment of intangible assets.
Article XNUMX "Other assets" refers to other assets other than the above-mentioned assets, such as long-term deferred expenses.
Long-term deferred expenses refer to various expenses that have been paid by the enterprise, but the amortization period is more than 1 year (excluding 1 year), including expenses for overhaul of fixed assets and expenses for improvement of leased fixed assets.The loan interest, rent, etc. that should be borne by the current period shall not be treated as long-term deferred expenses.
Long-term deferred expenses should be accounted for separately, and amortized evenly in installments within the benefit period of the expense item.If the overhaul costs are prepaid, the overhaul costs incurred shall be amortized evenly before the next overhaul; the leased fixed assets improvement expenses shall be averaged over the shorter of the lease term and the remaining useful life of the leased assets. Amortization; other long-term deferred expenses shall be amortized evenly within the benefit period.
If a company limited by shares entrusts other units to issue stocks, the balance of handling fees or commissions and other related expenses after deducting the interest income during the freezing period of stock issuance is not enough to offset the premium of the issued stocks, or if there is no premium, if the amount is small If the amount is relatively large, it can be regarded as a long-term deferred expense, amortized evenly within a period of not more than 2 years, and included in the profit and loss.
Except for the purchase and construction of fixed assets, all the expenses incurred during the preparation period are first collected in the long-term deferred expenses, and are included in the profit and loss of the month when the enterprise starts production and operation.
If the long-term amortized expense item cannot benefit future accounting periods, the amortized value of the item that has not yet been amortized shall be transferred to the current profit and loss.
Section XNUMX. Asset Impairment
Article XNUMX. An enterprise shall conduct a comprehensive inspection of various assets on a regular basis or at least at the end of each year, and reasonably predict the possible losses of various assets according to the requirements of the principle of prudence. Losses are provided for impairment of assets.
An enterprise shall make reasonable provisions for impairment of various assets, but shall not make provision for secrets.If there is conclusive evidence that the enterprise has improperly used the principle of prudence to make secret reserves, it shall be corrected as a major accounting error, and the nature of the matter, the amount of adjustment, and the impact on the financial status and operating results of the enterprise shall be explained in the notes to the accounting statements. Impact.
Article XNUMX. Enterprises shall conduct a comprehensive inspection of all short-term investments at the end of the period.Short-term investment shall be measured at the lower of cost and market price, and for the part where the market price is lower than the cost, a provision for short-term investment depreciation shall be made.
When using the short-term investment cost or the market price, whichever is lower, the enterprise may, according to its specific circumstances, use the provision for depreciation according to the overall investment, investment category or individual investment. above), the provision for depreciation shall be calculated and determined on the basis of a single investment.
The enterprise shall conduct regular inspections on the principal of the entrusted loan, and measure it according to the lower of the principal of the entrusted loan and the recoverable amount. The difference between the recoverable amount and the principal of the entrusted loan shall be provided for impairment.On the balance sheet, the principal and interest receivable of entrusted loans minus the provision for impairment losses are included in short-term investments or long-term debt investments.
The recoverable amount mentioned in this system refers to the higher of the net sales price of the asset and the present value of the expected future cash flow expected to be formed from the continuous use of the asset and the disposal at the end of its useful life.Among them, the net sales price refers to the balance of the sales price of the assets minus the expenses incurred for the disposal of the assets.For a long-term investment, the recoverable amount refers to the higher of the net sale price of the investment and the present value of the expected future cash flows expected to arise from the holding of the asset and the maturity disposal of the investment.Among them, the net sale price refers to the amount obtained after deducting the relevant taxes and fees from the sale price of the investment.
Article XNUMX. The enterprise shall analyze the recoverability of various receivables at the end of the period and estimate the possible bad debt losses.For bad debt losses that are expected to occur, provision for bad debts is made.The method of making provision for bad debts by an enterprise shall be determined by the enterprise itself.An enterprise shall formulate a policy for making provision for bad debts, specify the scope of making provision for bad debts, the method of withdrawal, the division of the age of accounts and the ratio of withdrawal, report to the relevant parties for the record in accordance with the provisions of laws and administrative regulations, and keep it at the location of the enterprise.Once the bad debt provision accrual method is determined, it shall not be changed arbitrarily.If changes are required, they should be explained in the notes to the financial statements.
When determining the provision ratio for bad debts, the enterprise shall make a reasonable estimate based on past experience, the actual financial status and cash flow of the debtor and other relevant information.Unless there is conclusive evidence that the receivable cannot be recovered or is unlikely to be recovered (for example, the debtor has been revoked, bankrupt, insolvent, severely insufficient in cash flow, or the occurrence of serious natural disasters has led to the suspension of production and Inability to repay debts in a short period of time, as well as receivables for more than 3 years), the following conditions cannot be fully accrued bad debt provisions:
(XNUMX) Accounts receivable that occurred in the current year;
(XNUMX) Plan to restructure the receivables;
(XNUMX) Accounts receivable with related parties;
(XNUMX) Other receivables that are overdue but there is no conclusive evidence that they cannot be recovered.
If there is conclusive evidence that the prepaid accounts of the enterprise do not conform to the nature of prepaid accounts, or if there is no hope of receiving the purchased goods due to bankruptcy or cancellation of the supplier, the amount originally included in the prepaid accounts shall be transferred. into other receivables, and make provision for bad debts as required.
For the undue notes receivable held by the enterprise, if there is conclusive evidence that it cannot be recovered or is unlikely to be recovered, the book balance should be transferred to the accounts receivable, and the corresponding bad debt provision should be made.
Article XNUMX. Enterprises should conduct a comprehensive inventory of inventory at the end of the period. If the inventory cost is higher than the net realizable value due to the damage of the inventory, all or part of it is obsolete, or the sales price is lower than the cost, the net realizable value shall be calculated. For the part lower than the cost of inventory, a provision for inventory depreciation is made.Net realisable value refers to the value of the estimated selling price minus the estimated cost of completion and the estimated expenses necessary for the sale in the normal course of operation of the enterprise.
Allowance for impairment of inventories should be measured at the cost and net realisable value of a single item of inventory, if some of the inventory has a similar purpose and is related to a product line produced and sold in the same region, and it is practically difficult to distinguish it from other items of the product line For inventories that are opened for valuation, cost and net realizable value can be measured in combination; for inventories with a large quantity and low unit price, cost and net realizable value can be measured according to the category of inventory.When one or more of the following situations exist, the book value of inventories shall be fully transferred to the current profit and loss:
(XNUMX) Inventory that has been rotten and deteriorated;
(XNUMX) Inventories that have expired and have no transfer value;
(XNUMX) Inventories that are no longer needed in production and have no use value and transfer value;
(XNUMX) Other inventories sufficient to prove that they have no use value and transfer value.
Article XNUMX. When one of the following circumstances exists, the provision for inventory depreciation shall be accrued:
(XNUMX) The market price continues to fall, and there is no hope of recovery in the foreseeable future;
(XNUMX) The cost of the product produced by the enterprise using the raw material is greater than the selling price of the product;
(XNUMX) Due to the upgrading of products, the original raw materials in stock are no longer suitable for the needs of new products, and the market price of the raw materials is lower than its book cost;
(XNUMX) Changes in market demand due to outdated goods or services provided by the enterprise or changes in consumer preferences, resulting in a gradual drop in market prices;
(XNUMX) Other circumstances sufficient to prove that the inventory has been substantially impaired.
Article XNUMX. The enterprise shall check the long-term investment, fixed assets and intangible assets item by item at the end of the period. If the recoverable amount is lower than its book value, provision for impairment of long-term investments, fixed assets and intangible assets shall be made.
Provisions for impairment of long-term investments, fixed assets and intangible assets shall be accrued on a single item basis.
Article XNUMX For long-term investments with market prices, it may be judged whether or not to make provision for impairment according to the following signs:
(2) The market price has been lower than the book value for two consecutive years;
(1) The investment is suspended from trading for one year or more;
(XNUMX) The invested entity suffered serious losses in the current year;
(2) The investee has suffered losses for two consecutive years;
(XNUMX) The investee is rectified, liquidated, or has other signs of not being able to continue operations.
Article XNUMX For long-term investments with no market value, it may be judged whether or not to make provision for impairment according to the following signs:
(XNUMX) Changes in the political or legal environment that affect the operation of the invested entity, such as the promulgation or revision of tax, trade and other regulations, which may cause the invested entity to suffer huge losses;
(XNUMX) The commodities supplied by the invested entity or the services provided by the invested entity change the market demand due to outdated products or changes in consumer preferences, thus causing serious deterioration of the financial status of the invested entity;
(XNUMX) Significant changes have occurred in the production technology of the invested entity's industry, and the invested entity has lost its competitiveness, resulting in serious deterioration of its financial conditions, such as cleaning up, rectification, liquidation, etc.;
(XNUMX) Other circumstances where there is evidence that the investment can no longer bring economic benefits to the enterprise in essence.
Article XNUMX If the fixed assets of an enterprise have been substantially impaired, provision for impairment shall be made.For fixed assets that have one of the following conditions, full provision for impairment shall be made:
(XNUMX) Fixed assets that have been idle for a long time, will not be used in the foreseeable future, and have no transfer value;
(XNUMX) Fixed assets that are no longer usable due to technological progress and other reasons;
(XNUMX) Although the fixed assets can still be used, but a large number of unqualified products are generated after use;
(XNUMX) Fixed assets that have been damaged so that they no longer have use value and transfer value;
(XNUMX) Other fixed assets that can no longer bring economic benefits to the enterprise in essence.
For fixed assets that have been fully accrued for impairment, depreciation is no longer accrued.
Article XNUMX. When one or more of the following situations exist, the book value of the intangible asset shall be transferred to the current profit and loss:
(XNUMX) An intangible asset has been replaced by other new technologies, and the intangible asset has no use value and transfer value;
(XNUMX) A certain intangible asset has exceeded the legal protection period, and can no longer bring economic benefits to the enterprise;
(XNUMX) Other circumstances sufficient to prove that an intangible asset has lost its use value and transfer value.
Article XNUMX. When one or more of the following situations exist, provision for impairment of intangible assets shall be made:
(XNUMX) An intangible asset has been replaced by other new technologies, so that its ability to create economic benefits for the enterprise has been significantly adversely affected;
(XNUMX) The market price of an intangible asset has fallen sharply in the current period and is not expected to recover within the remaining amortization period;
(XNUMX) An intangible asset has exceeded the legal protection period, but still has partial use value;
(XNUMX) Other circumstances sufficient to prove that an intangible asset has been substantially impaired.
Article XNUMX. If the amount of assets depreciation reserves that should be accrued in the current period calculated by the enterprise is higher than the book balance of the assets depreciation reserves that have been withdrawn, it shall make up the depreciation reserves according to the difference; The book balance of the reserve should be written back to the overdrawn asset impairment reserve according to the difference, but the write-down asset impairment reserve is limited to the book balance of the accrued asset impairment reserve.The actual asset loss is offset against the provision for impairment.
If the recognized and written-off asset losses are recovered later, the accrued asset impairment provision shall be adjusted accordingly.
If an enterprise abuses accounting estimates, it shall be treated as a major accounting error and shall be accounted for in accordance with the method of correcting major accounting errors, that is, the excess provision for asset impairment made by the enterprise due to the abuse of accounting estimates shall be reversed in the current period of reversal according to the original channel. (For example, if the original retrospective adjustment is made, the current period will still be retroactively adjusted to the previous periods when it is reversed; if it was originally accrued from the previous period’s profit, the previous period’s profit will still be adjusted when the current period is reversed).
Article XNUMX When disposing of various assets for which depreciation reserves have been made, as well as debt restructuring, non-monetary transactions, and exchange of receivables, the depreciation reserves that have been accrued shall be carried forward at the same time.
Article XNUMX: Enterprises shall find out the reasons for unrecoverable receivables and long-term investments, and hold them accountable.For receivables and long-term investments that have conclusive evidence that cannot be recovered, such as the debtor or investee has been revoked, bankrupt, insolvent, or seriously insufficient in cash flow, etc., according to the management authority of the enterprise, through the shareholders' meeting or The board of directors, or the manager (manager) meeting or similar body approves it as an asset loss to write off the relevant asset impairment provision that has been accrued.
Article 3 When an enterprise is expected to depreciate its construction in progress, such as a construction in progress that has been suspended for a long time and is not expected to be restarted within XNUMX years, the provision for asset impairment shall also be made according to the above principles.
  Chapter XNUMX Liabilities
  Article XNUMX Liabilities refer to the present obligations formed by past transactions and events, the performance of which is expected to result in the outflow of economic benefits from the enterprise.
Article XNUMX The liabilities of an enterprise shall be classified into current liabilities and long-term liabilities according to their liquidity.
  Section XNUMX. Current Liabilities
Article 1 Current liabilities refer to debts that will be repaid within one year (including one year) or a business cycle exceeding one year, including short-term loans, notes payable, accounts payable, accounts received in advance, and wages payable , welfare fees payable, dividends payable, taxes payable, other temporary receivables and payables, accrued expenses and long-term loans due within one year.
Article XNUMX. All current liabilities shall be recorded according to the actual amount incurred.For short-term loans, interest-bearing notes payable, and short-term bonds payable, interest shall be accrued according to the principal of the loan or the face value of the bonds at the determined interest rate and included in the profit and loss.
Article XNUMX When an enterprise and its creditors carry out debt restructuring, they shall be handled in accordance with the following provisions:
(XNUMX) If the debt is paid in cash, the difference between the cash paid and the book value of the debt payable shall be included in the capital reserve;
(XNUMX) If the debt is paid off with non-cash assets, it shall be carried forward according to the book value of the debt payable.The difference between the book value of debts payable and the book value of non-cash assets used to repay debts shall be regarded as capital reserve, or shall be included in current non-operating expenses as losses.
(XNUMX) Where debts are converted into capital, the following situations shall be handled separately:
1. For a company limited by shares, the total face value of the shares that the creditors have given up their claims shall be taken as the share capital, and the difference between the book value of the debts payable and the amount converted into share capital shall be taken as the capital reserve;
2. For other enterprises, the paid-in capital shall be the share of equity enjoyed by the creditor who waives the creditor's rights, and the difference between the book value of the debt and the amount converted into paid-in capital shall be taken as the capital reserve.
(XNUMX) If the debt restructuring is carried out by modifying other debt conditions, and the future payable amount after the modification of other debt conditions is less than the book value of the debt payable before the debt restructuring, the difference shall be included in the capital reserve; In case of expenditure, the contingent expenditure shall be included in the future payable amount. If the future payable amount including the contingent expenditure is less than the book value of the debt payable before the debt restructuring, the difference shall be included in the capital reserve.If the contingent expenditure conditions stipulated in the debt restructuring agreement are not met during the debt repayment period in the future, that is, if the contingent expenditure does not occur, the recorded contingent expenditure shall be transferred to the capital reserve.
If the amount payable in the future after the modification of other debt conditions is equal to or greater than the book value of the debt payable before the debt restructuring, no accounting treatment shall be made during the debt restructuring.The debts payable after the modification of debt conditions shall be accounted for in accordance with the general debts payable as stipulated in this system.
The contingent expenditures mentioned in this system refer to the expenditures that occur according to the occurrence of certain events in the future.The occurrence of future events is uncertain.
Section XNUMX. Long-term liabilities
Article 1 "Long-term liabilities refer to liabilities with a repayment period of one year or more for one business cycle or more, including long-term loans, bonds payable, long-term payables, etc."
Various long-term liabilities shall be accounted for separately and reflected in separate items in the balance sheet.Long-term liabilities due for repayment within one year should be separately reflected in the balance sheet as a current liability.
Article XNUMX. Long-term liabilities shall be recorded at the actual amount incurred.
Long-term liabilities shall be accrued on schedule according to the principal of the liabilities or the face value of the bonds and at the prescribed interest rate, and shall be included in the project cost or the current financial expenses respectively according to the provisions of this system.
For enterprises that calculate income tax according to the tax impact accounting method, the taxable or deductible income tax impact of time differences due to time differences is accounted for separately as an adjustment to current income tax expenses.
Article XNUMX. An enterprise that issues bonds shall treat it as a liability according to the actual total issue price; the difference between the total issue price of the bond and the total face value of the bond shall be regarded as the bond premium or discount, and shall be treated according to the actual interest rate method during the duration of the bond. Or the straight-line method shall be amortized when interest is accrued, and shall be treated according to the treatment principle of borrowing costs.
Article XNUMX For enterprises that issue convertible corporate bonds, the convertible corporate bonds shall be treated as ordinary corporate bonds before they are issued and converted into shares.When the convertible corporate bond holders exercise the conversion right to convert the bonds they hold into shares or capital, they should be carried forward at their book value; the difference between the book value of the convertible corporate bonds and the face value of the convertible shares, minus the payment The balance after the cash is treated as a capital reserve.
For convertible corporate bonds with redemption options issued by an enterprise, the interest compensation that may be paid on the redemption date, that is, the difference between the interest payable on the expiry date of the agreed redemption period minus the coupon interest payable on the bonds, shall be paid on the bond. Interest payable shall be accrued from the date of issuance to the expiry date of the agreed redemption of the bonds, and the accrued and payable interest shall be dealt with in accordance with the principle of handling borrowing costs.
Article XNUMX. Fixed assets under financing lease shall be the lower of the original book value of the leased asset and the present value of the minimum lease payment on the lease commencement date as the book value of the fixed assets under financing lease. The minimum lease payments are recorded as long-term payables, and the difference between the two is recorded as unrecognized financing charges.
If the proportion of finance leased assets in the total assets of the enterprise is equal to or lower than 30%, the minimum lease payment shall be used as the entry value of finance leased fixed assets and long-term payables on the lease commencement date.
Article XNUMX. The special appropriations received by the enterprise are treated as special payables. After the appropriation projects are completed, the part that should be written off will be written off against the special payables; the rest will be transferred to the capital reserve.
Article XNUMX The borrowing costs incurred by an enterprise refer to the interest, amortization and auxiliary expenses of discount or premium incurred due to borrowing, and the exchange difference arising from foreign currency borrowing.Auxiliary expenses incurred due to borrowing include handling fees, etc.
Except for the borrowing costs incurred for special borrowings for the purchase and construction of fixed assets, other borrowing costs shall be recognized as expenses in the current period and directly included in the current financial expenses.
The special loan referred to in this system refers to the money borrowed specially for the purchase and construction of fixed assets.
The borrowing costs incurred for special borrowings for the purchase and construction of fixed assets shall be dealt with in accordance with the following provisions:
(XNUMX) Handling of auxiliary expenses incurred due to borrowing:
1. If an enterprise issues bonds to raise funds specifically for the purchase and construction of fixed assets, a relatively large amount of issuance expenses will be incurred (minus the interest income generated by the frozen funds during the issuance period) before the purchased and constructed fixed assets reach the predetermined usable state. , and directly included in the cost of the fixed assets purchased and constructed; the issuance expenses with a small amount (minus the interest income generated by the frozen funds during the issuance period) will be directly included in the current financial expenses.
The handling fee incurred for borrowing from the bank shall be handled according to the same principle as above.
2. Auxiliary expenses other than issuance expenses and bank loan fees incurred due to arranging special loans, if the amount is relatively large, are incurred before the purchased and constructed fixed assets reach the intended usable state, and shall be included in the amount when incurred. The cost of the purchased and constructed fixed assets; those incurred after the purchased and constructed fixed assets reach the intended usable state shall be directly included in the current financial expenses.Ancillary expenses with a small amount can also be directly included in financial expenses in the current period in which they are incurred.
(XNUMX) Amortization of loan interest, discount or premium, and treatment of exchange differences
1. When the following three conditions are met at the same time, the interest, amortization of discount or premium, and exchange difference arising from the special loan borrowed by the enterprise for the purchase and construction of a fixed asset shall begin to be capitalized and included in the purchase and construction of fixed assets. the cost of:
(1) Asset expenditure (only including the expenditure in the form of cash payment, transfer of non-cash assets or assumption of interest-bearing debts for the purchase and construction of fixed assets) has occurred;
(2) The borrowing costs have been incurred;
(3) The acquisition and construction activities necessary to make the asset reach its intended usable state have started.
2. The borrowing interest, the amortization of discount or premium, and the exchange difference arising from the special loan borrowed by the enterprise for the purchase and construction of fixed assets, if the above capitalization conditions are met, shall be paid before the purchased and constructed fixed assets reach the intended usable state. If it occurs, it shall be capitalized and included in the cost of the purchased and constructed fixed assets; if the purchased and constructed fixed assets reach the intended usable state, it shall be directly included in the current financial expenses in the current period of occurrence.The formula for calculating the capitalized amount of interest for each accounting period is as follows:
The capitalized amount of interest in each accounting period = the weighted average of accumulated expenditures for the purchase and construction of fixed assets until the end of the current period × capitalization rate
Weighted average number of cumulative expenditures = Σ (amount of each asset expenditure × the number of days actually occupied by each asset expenditure \ the number of days covered in the accounting period)
To simplify the calculation, the number of months can also be used as the weight for calculating the weighted average of accumulated expenditures.
The principle for determining the capitalization rate is: the enterprise only borrows one special loan for the purchase and construction of fixed assets, and the capitalization rate is the interest rate of the loan; the enterprise borrows more than one special loan for the purchase and construction of fixed assets, and the capitalization rate is these. The weighted average interest rate on borrowings.The formula for calculating the weighted average interest rate is as follows:
Weighted average interest rate = the sum of the actual interest of the special loan in the current period\the weighted average number of the special loan principal × 100%
Weighted average number of special loan principal = Σ (each special loan principal × the number of days actually occupied by each special loan \ the number of days covered in the accounting period)
To simplify the calculation, the number of months can also be used as the weight for calculating the weighted average of the principal of the special loan.
When calculating the capitalization rate, if there is a discount or premium for the bonds issued by the enterprise, the amount of the discount or premium that should be amortized in each period shall be regarded as the adjustment amount of the interest, and the capitalization rate shall be adjusted accordingly. The calculation formula is as follows: weighted average interest rate = the sum of the interest actually incurred in the current period of the special loan + (or -) the amortization of discount (or premium) \ the weighted average number of the principal of the special loan × 100%
3. The foreign currency special loan borrowed by the enterprise for the purchase and construction of fixed assets, the exchange difference generated in each accounting period (referring to the exchange difference between the principal and interest of the foreign currency special loan in the current period), when the purchase and construction of the fixed asset reaches the predetermined level. Before it can be used, it shall be capitalized and included in the cost of the purchased and constructed fixed assets; after the fixed asset reaches the intended usable state, it shall be included in the current financial expenses.
4. If an enterprise issues bonds, if the issuance cost is less than the interest income generated by the frozen funds during the issuance period, the difference between the interest income generated by the frozen funds during the issuance period minus the issuance expenses shall be regarded as the premium income from the issuance of bonds. Amortized when interest is accrued.
5. The capitalized amount of interest and amortization of discount or premium for each period of the enterprise shall not exceed the amortization amount of interest and discount or premium actually incurred in the current period for special borrowings for the purchase and construction of fixed assets.
When determining the capitalized amount of borrowing costs, the interest income related to special borrowings shall not be offset against the cost of the fixed assets purchased and constructed, and the incurred interest income shall be directly included in the current financial expenses.
6. The funds raised by the enterprise through non-borrowing are specially used for the purchase and construction of a certain fixed asset, such as special appropriations, funds raised by issuing stocks, etc., and the funds borrowed before the raised funds are specially used for the purchase and construction of the fixed asset. Funds and the borrowing costs incurred shall be dealt with according to the principle of handling borrowing costs before the raised funds arrive; after the raised funds arrive, when the actual expenditure for the purchase and construction of the asset does not exceed the funds raised by non-borrowing, the The borrowing costs are directly included in the current financial expenses.When the actual expenditure exceeds the funds raised by non-borrowing, the borrowing costs incurred by special borrowing shall be treated according to the principle of handling borrowing costs. Funds deduction.
7. If each part of a fixed asset under construction is completed separately (referring to each single project or unit project, the same below), each part will be available for use while other parts continue to be constructed, and in order to make the part available for intended use. The acquisition and construction activities necessary for the state have been substantially completed, the borrowing costs incurred for this part of the asset are no longer included in the cost of the fixed assets constructed, but are directly included in the current financial expenses; If the asset is completed, but it cannot be used until the overall completion of the asset, the borrowing costs incurred should not be included in the cost of the fixed asset constructed, but directly included in the current financial expenses when the asset is completed as a whole.
8. If the purchase and construction of a fixed asset is interrupted abnormally, and the interruption time exceeds 3 consecutive months (including 3 months), the capitalization of borrowing costs shall be suspended, and the borrowing costs incurred during the interruption period shall not be included in the calculation. The cost of the purchased and constructed fixed assets shall be directly included in the financial expenses of the current period until the purchase and construction is restarted, and then the borrowing costs incurred until the fixed assets are ready for their intended use shall be included in the amount of the purchased and constructed fixed assets. cost.
If the interruption is a necessary procedure to make the purchased and constructed fixed assets reach the intended usable state, the borrowing costs incurred during the interruption period shall still be included in the cost of the fixed assets.
The capitalization of borrowing costs shall be stopped when the purchased and constructed fixed assets reach the expected usable state; the borrowing costs incurred in the future shall be directly included in the financial expenses in the current period of occurrence.
Article XNUMX. The term "reaching the intended usable state" as mentioned in this system means that the fixed assets have reached the intended usable state of the purchaser or the builder.When one of the following conditions exists, the purchased and constructed fixed assets can be considered to be ready for use:
(XNUMX) The physical construction (including installation) of the fixed assets has been completed or substantially completed;
(XNUMX) Trial production or trial operation has been completed, and the results show that the asset can operate normally or can stably produce qualified products, or the trial operation results indicate that it can operate or operate normally;
(XNUMX) The amount of expenditure on the fixed assets of the construction is very small or almost no longer occurs;
(XNUMX) The purchased and constructed fixed assets have reached the design or contract requirements, or are in conformity with or basically conform to the design or contract requirements. Even if there are very few places that do not conform to the design or contract requirements, it is not enough to affect their normal use.
  Chapter XNUMX Owner's Equity
Article XNUMX Owner's equity refers to the economic interests enjoyed by the owner in the assets of the enterprise, the amount of which is the balance of the assets minus the liabilities.Owner's equity includes paid-in capital (or share capital), capital reserve, surplus reserve and undistributed profits.
Article XNUMX. The paid-in capital of an enterprise refers to the capital actually invested by investors in accordance with the articles of association of the enterprise, or as stipulated in contracts and agreements.
(XNUMX) The paid-in capital of a general enterprise shall be calculated in accordance with the following provisions:
1. The capital invested by the investor in cash shall be recorded as the paid-in capital with the amount actually received or deposited in the bank where the enterprise is opened.The part of the amount actually received or deposited in the bank where the enterprise opens accounts exceeds its share in the registered capital of the enterprise, and is included in the capital reserve.
2. The capital invested by investors with non-cash assets shall be recorded as paid-in capital according to the value confirmed by the investment parties.The intangible assets received by investors for the initial issuance of shares shall be recorded at the book value of the intangible assets in the investor.
3. For foreign currency invested by investors, if the exchange rate is not stipulated in the contract, it shall be converted at the exchange rate on the day when the capital contribution is received; if the exchange rate is stipulated in the contract, it shall be converted at the exchange rate agreed in the contract, and the conversion difference arising from different exchange rates shall be treated as capital reserves.
4. In accordance with the relevant laws and regulations, a Chinese-foreign cooperative enterprise returns the investor's investment during the cooperation period, the returned investment shall be accounted for separately, and shall be separately reflected in the balance sheet as a deduction of the paid-in capital.
1. The company's share capital shall be obtained by issuing shares within the range of the approved total share capital and the approved total shares.The shares issued by the company shall be regarded as the share capital according to their face value, and the income obtained from the issuance in excess of the face value shall be included in the capital reserve as the share premium.
2. For overseas listed companies and companies that issue foreign-funded shares in China, the amount calculated by multiplying the determined face value of shares in RMB and the total amount of shares approved shall be recorded as share capital. The difference between the calculated total face value of shares is treated as capital reserve.
Article XNUMX. Enterprise capital (or share capital) shall not be changed arbitrarily except in the following circumstances:
(XNUMX) If the capital increase conditions are met and the capital increase is approved by the relevant departments, it shall be registered and recorded when the investor's capital contribution is actually obtained.
(XNUMX) If an enterprise reports and obtains approval to reduce its registered capital in accordance with legal procedures, it shall be registered and recorded when the investment is actually returned.If the capital is reduced by purchasing the shares of the enterprise, it shall be registered and recorded when the shares of the enterprise are actually purchased.
An enterprise shall record in detail in the subsidiary ledger of the capital account and the relevant reference books for the cancellation of shares due to capital reduction, the repayment of shares, and the changes in shares that need to be renewed due to capital reduction.
If an investor transfers its capital contribution in accordance with the regulations, the enterprise shall transfer the capital contribution transferred by the transferor to the transferee in the relevant sub-accounts of the capital (or share capital) account and in various registration books for reference when the relevant transfer procedures are completed. .
Article XNUMX. Capital reserve includes capital (or share capital) premium, donated assets, transfer of appropriations, and foreign currency capital conversion differences.Capital reserve items mainly include:
(XNUMX) The capital (or share capital) premium refers to the part of the capital invested by the enterprise investor in excess of its share in the registered capital;
(XNUMX) The reserve for accepting non-cash asset donations refers to the capital reserve increased by the enterprise due to accepting non-cash asset donations;
(XNUMX) Accepting cash donations refers to the increased capital reserves of an enterprise due to accepting cash donations;
(XNUMX) Equity investment reserve refers to the increased capital reserve due to the investee’s acceptance of donations and other reasons when an enterprise adopts the equity method to account for the long-term equity investment of the investee, and the increased capital reserve calculated by the enterprise according to its shareholding ratio. product;
(XNUMX) Transfer-in of appropriations refers to the part that is transferred to the capital reserve according to regulations after the enterprise receives the appropriation projects allocated by the state specifically for technological transformation, technological research, etc. after completion.Enterprises should be credited according to the transferred amount;
(XNUMX) The foreign currency capital conversion difference refers to the capital conversion difference arising from the different exchange rates adopted by the enterprise for accepting foreign currency investment;
(XNUMX) Other capital reserves refer to the capital reserves formed in addition to the above-mentioned capital reserves, and the amount transferred from each provision item of the capital reserves.Debts forgiven by creditors are also accounted for in this item.
Each reserve item of capital reserve cannot be converted into capital (or share capital).
Article XNUMX. According to the nature of the enterprise, the surplus reserve includes the following contents:
(XNUMX) The surplus reserves of general enterprises and joint stock limited companies include:
1. Statutory surplus reserve refers to the surplus reserve that an enterprise draws from its net profit in accordance with the prescribed proportion;
2. Discretionary surplus reserve refers to the surplus reserve that an enterprise draws from its net profit in a prescribed proportion upon the approval of the general meeting of shareholders or similar institutions;
3. Statutory public welfare fund refers to the public welfare fund that the enterprise withdraws from the net profit in accordance with the prescribed proportion and is used for the collective welfare facilities of the employees. When the statutory public welfare fund is used for the collective welfare of the employees, it shall be transferred to the discretionary surplus reserve.
The company's surplus reserve can be used to make up for losses and increase capital (or share capital).Enterprises that meet the prescribed conditions can also use their surplus reserves to distribute cash dividends.
1. The reserve fund refers to the reserve fund drawn from the net profit in accordance with the provisions of laws and administrative regulations and approved to make up for losses and increase capital;
2. The enterprise development fund refers to the enterprise development fund extracted from the net profit in accordance with the provisions of laws and administrative regulations and used for the production and development of the enterprise and approved to increase the capital;
3. Profit-returned investment refers to the investment made by a Chinese-foreign cooperative enterprise to return the investor's investment with profit during the cooperation period according to regulations.
  Chapter XNUMX Income
Article XNUMX. Income refers to the total inflow of economic benefits formed by an enterprise in its daily activities such as selling commodities, providing labor services and transferring the right to use assets, including main business income and other business income.Revenue does not include payments collected on behalf of third parties or customers.
An enterprise shall reasonably recognize and measure various incomes according to the nature of income and in accordance with the principle of income recognition.
Section XNUMX Sales of goods and provision of labor income
Article XNUMX. Income from the sale of commodities shall be recognized when all of the following conditions are met:
(XNUMX) The enterprise has transferred the main risks and rewards of ownership of the goods to the buyer;
(XNUMX) The enterprise neither retains the continuing management rights usually associated with ownership nor exercises control over the sold goods;
(XNUMX) The economic benefits related to the transaction can flow into the enterprise;
(XNUMX) Relevant income and costs can be measured reliably.
Article XNUMX. The income from the sale of goods shall be determined according to the amount of the contract or agreement signed by the enterprise and the buyer or the amount accepted by both parties.Cash discounts are taken as current expenses when actually incurred; sales discounts are written off against current income when they are actually incurred.
Cash discount refers to the debt reduction provided by the creditor to the debtor in order to encourage the debtor to pay within the specified period; sales discount refers to the discount given by the enterprise on the selling price due to the unqualified quality of the goods sold. Let.
Article XNUMX. If an enterprise has already confirmed the income of the sold goods and is returned from the sale, the income of the current period shall be offset and returned; the goods sold on and before the annual balance sheet date shall be reported between the balance sheet date and the approval of the financial accounting report. If the refund occurs between the date of issuance, it shall be treated as an adjustment matter after the balance sheet date, and the figures of the relevant income, expenses, assets, liabilities, owner's equity and other items in the accounting statements prepared on the balance sheet date shall be adjusted.
Article XNUMX. For labor services started and completed within the same fiscal year, income shall be recognized when the labor services are completed.If the start and completion of labor services belong to different fiscal years, under the circumstance that the result of the transaction of providing labor services can be estimated reliably, the enterprise shall recognize the related labor service income on the balance sheet date using the percentage of completion method.The percentage of completion method refers to the method of recognizing income and expenses according to the degree of completion of labor services.
The outcome of a labor transaction can be estimated reliably when the following conditions are met:
(XNUMX) The total labor revenue and total cost can be measured reliably;
(XNUMX) The economic benefits related to the transaction can flow into the enterprise;
(XNUMX) The degree of completion of labor services can be reliably determined.
The degree of completion of labor services shall be determined as follows:
(XNUMX) Measurement of completed work;
(XNUMX) The ratio of the labor services already provided to the total labor services to be provided;
(XNUMX) The ratio of the cost incurred to the estimated total cost.
Article XNUMX. Under the circumstance that the result of the transaction of providing labor services cannot be estimated reliably, the enterprise shall recognize and measure the income in the following situations on the balance sheet date:
(XNUMX) If the labor cost that has already occurred is expected to be compensated, the income shall be recognized according to the amount of labor cost that has occurred, and the cost shall be carried forward at the same amount;
(XNUMX) If the labor cost that has already occurred is not expected to be fully compensated, the revenue shall be recognized according to the amount of labor cost that can be compensated, and the labor cost that has occurred shall be regarded as the current expense, and the amount recognized is less than the difference of the labor cost that has occurred. , as the current loss;
(XNUMX) If all labor costs incurred cannot be compensated, the incurred labor costs shall be regarded as current expenses and no income shall be recognized.
Article XNUMX. The total income from the rendering of labor services shall be determined according to the amount of the contract or agreement signed between the enterprise and the party accepting labor services.Cash discounts should be considered as current expenses when actually incurred.
Article XNUMX. Income arising from the assignment of the right to use assets includes interest income and royalty income.
(XNUMX) Interest and royalty income shall be recognized when the following conditions are met:
1. The economic benefits associated with the transaction can flow into the enterprise;
2. The amount of income can be measured reliably.
(XNUMX) Interest and royalty income shall be measured separately according to the following methods:
1. Interest income shall be calculated and determined according to the time of transferring the right to use cash and the applicable interest rate;
2. The income from royalties shall be calculated and determined according to the charging time and method stipulated in the relevant contracts or agreements.
Section XNUMX. Income from construction contracts
Article XNUMX A construction contract refers to a contract concluded for the construction of one asset or several assets closely related in terms of design, technology, function, and final use.
(XNUMX) A fixed cost contract refers to a construction contract in which the project price is determined according to a fixed contract price or a fixed unit price.
(XNUMX) A cost-plus contract refers to a construction contract in which the project price is determined on the basis of the cost permitted by the contract or negotiated in other ways, plus a certain percentage or fixed fee of the cost.
Article XNUMX. The income from a construction project contract includes the initial income stipulated in the contract and the income formed due to contract modification, claims, awards, etc.
Contract modification refers to the adjustment proposed by the customer to change the work content stipulated in the contract.The increase in revenue due to contract changes shall be recognized when the customer can recognize the increase in revenue due to the change and the revenue can be measured reliably.
Claims refers to the amount collected by the construction contractor from the customer or a third party due to the reasons of the customer or a third party to compensate for the cost not included in the contract cost.The enterprise can only recognize the revenue arising from the claim if it is expected that the other party can agree to the claim (based on the negotiation situation), and the amount agreed by the other party can be measured reliably.
Incentive payments are additional payments that the client agrees to pay to the construction contractor when the project meets or exceeds specified standards.The enterprise shall recognize the revenue generated from the reward only when it is sufficient to judge that the progress and quality of the project can meet or exceed the established standards according to the current contract completion status, and the reward amount can be measured reliably.
Article XNUMX. The construction contractor's construction project contract cost shall include the direct and indirect expenses related to the execution of the contract, which occurred from the time the contract is signed to the completion of the contract.
Direct costs include labor costs, materials costs, machinery costs, design-related technical assistance costs, secondary transportation costs for construction site materials, production tools and utensils, inspection and testing costs, Other direct expenses such as project positioning re-measurement fee, project point delivery fee, site cleaning fee, etc.
Indirect expenses are the expenses incurred by the construction unit or production unit under the enterprise for the organization and management of construction and production activities, including the amortization cost of temporary facilities and construction, production unit management personnel wages, bonuses, employee welfare fees, labor protection fees, fixed assets Depreciation and repair costs, material consumption, amortization of low-value consumables, heating costs, water and electricity costs, office expenses, and travel expenses.Property insurance premiums, project warranty costs, sewage charges, etc.
The administrative expenses incurred by the administrative department of the enterprise for the organization and management of production and operation activities, the sales expenses of ships and other manufacturing enterprises, the financial expenses incurred by the enterprise in raising the funds required for production and operation, and the relevant expenses incurred due to the conclusion of contracts shall be directly calculated. Enter the current fee.
Direct expenses shall be directly included in contract costs when incurred, and indirect expenses shall be apportioned and included in contract costs in a systematic and reasonable manner at the end of the period.The sporadic income related to the contract, such as the income obtained from the disposal of residual materials after the completion of the contract, should be offset against the contract cost.
Article XNUMX. The construction contractor's construction project contract revenue and expenses shall be recognized and measured according to the following principles;
(XNUMX) If the outcome of the construction contract can be estimated reliably, the enterprise shall recognize the contract revenue and expenses on the balance sheet date according to the percentage of completion method.The percentage-of-completion method refers to the method of recognizing revenue and expenses according to the completion progress of the contract.
1. The result of a fixed cost contract can be estimated reliably, which means that the following four conditions are met at the same time:
(1) The total contract revenue can be measured reliably;
(2) The economic benefits related to the contract can flow into the enterprise;
(3) On the balance sheet date, the progress of contract completion and the remaining costs to complete the contract can be reliably determined;
(4) Contract costs incurred to complete the contract can be clearly distinguished and measured reliably so that actual contract costs can be compared with previously estimated costs.
2. The outcome of a cost-plus contract can be estimated reliably if both of the following conditions are met:
(1) The economic benefits related to the contract can flow into the enterprise;
(2) The contract costs actually incurred can be clearly distinguished and measured reliably.
(XNUMX) For the construction contract completed in the current period, the balance of the actual total contract revenue minus the accumulated recognized revenue in the previous fiscal year shall be regarded as the current revenue, and the accumulated actual contract cost minus the accumulated recognized expenses in the previous fiscal year shall be regarded as the current revenue. The remaining balance is used as the current expense.
(XNUMX) If the outcome of the construction contract cannot be estimated reliably, it shall be handled differently from the following situations:
1. If the contract cost can be recovered, the contract revenue shall be recognized according to the actual contract cost that can be recovered, and the contract cost shall be regarded as an expense in the current period in which it occurs;
2. If the contract cost cannot be recovered, it shall be regarded as an expense immediately when it occurs, and no revenue shall be recognized.
(XNUMX) For a construction contract completed within one fiscal year, the contract revenue and contract expenses shall be recognized upon completion.
(XNUMX) If the total estimated cost of the contract will exceed the estimated total revenue of the contract, the estimated loss shall be immediately regarded as the current expense.
Article XNUMX. The completion schedule of a contract may be determined by the ratio of the cumulative actual contract cost to the total estimated contract cost, the ratio of the completed contract work to the total estimated contract work, and the measurement of the completed contract work.
When the contract completion schedule is determined by the proportion of the accumulated actual contract costs to the estimated total contract costs, the accumulated actual contract costs include:
(1) Contract costs related to future activities of the contract;
(2) The amount paid in advance to the subcontractor before the total workload of the subcontracted project is completed.
Article XNUMX. The determination of the external sales revenue of commercial housing developed by a real estate development enterprise shall be carried out in accordance with the principle of recognition of sales revenue; if it meets the conditions of the construction contract and there is an irrevocable construction contract, it can also be determined in accordance with the construction contract. According to the principle of revenue recognition, revenue from real estate development business is recognized according to the percentage of completion method.
The income of an enterprise shall be reflected in the income statement in accordance with the principle of materiality.
  Chapter VI Costs and Fees
Article XNUMX Expenses refer to the outflow of economic benefits from daily activities such as selling commodities and providing labor services; costs refer to various expenditures incurred by enterprises for producing products and providing labor services.
Enterprises should reasonably divide the boundaries of period expenses and costs.Expenses during the period should be directly included in the current profit and loss; costs should be included in the cost of products produced and labor services provided.
Enterprises should transfer the cost of products sold or services provided in the current period to the expenses of the current period; commodity circulation enterprises should transfer the purchase price of the commodities sold in the current period to the expenses of the current period.
Article XNUMX. Various materials consumed by an enterprise in the process of production and operation shall be calculated according to the actual consumption quantity and the book unit price, and shall be included in the cost and expense.
Article XNUMX: The enterprise shall pay the wages of its employees, and shall calculate the wages of the employees according to the prescribed wage standards, working hours, production records and other materials, and include the costs and expenses.The various wage subsidies given to employees by the enterprise according to the regulations shall also be included in each wage item.
Enterprises shall, in accordance with state regulations, calculate and withdraw payable welfare fees and include them in costs and expenses.
Article XNUMX All other expenses incurred by an enterprise in the process of production and operation shall be included in costs and expenses based on the actual amount incurred.Expenses that should be borne by the current period but have not yet been expended shall be included in the costs and expenses of the current period as accrued expenses; the expenses that have been paid and shall be borne by the current period and subsequent periods shall be regarded as prepaid expenses, and shall be amortized as costs in installments. ,cost.
Article XNUMX An enterprise shall determine the cost accounting objects, cost items and cost calculation methods suitable for the enterprise according to the production and operation characteristics and management requirements of the enterprise.Once the cost accounting objects, cost items and cost calculation methods are determined, they cannot be changed at will. If changes are required, they should be approved by the general meeting of shareholders or the board of directors, or the meeting of managers (directors) or similar bodies according to the management authority, and should be listed in the notes to the accounting statements. be explained.
Article XNUMX. The period expenses of an enterprise include operating expenses, management expenses and financial expenses.Periodic expenses should be directly included in the current profit and loss, and listed separately in the income statement.
(XNUMX) Operating expenses refer to the expenses incurred by an enterprise in the process of selling commodities, including transportation fees, loading and unloading fees, packaging fees, insurance fees, exhibition fees and advertising fees incurred in the process of selling goods by the enterprise, as well as expenses incurred for the sale of the enterprise’s goods. As for the special sales agencies (including sales outlets, after-sales service outlets, etc.), the staff wages and welfare fees, expenses of similar nature of wages, business expenses and other operating expenses.
The purchase costs incurred by commodity circulation enterprises in the process of purchasing commodities are also included.
(XNUMX) Administrative expenses refer to the administrative expenses incurred by the enterprise for organizing and managing the production and operation of the enterprise, including the expenses incurred by the board of directors and the administrative department of the enterprise in the operation and management of the enterprise, or the company expenses that should be borne by the enterprise in a unified manner (including Administrative and management department staff wages, repair costs, material consumption, amortization of low-value consumables, office expenses and travel expenses, etc.), labor union expenses, unemployment insurance, labor insurance, board of directors, hiring intermediaries, consulting fees (including Consultancy fees), litigation fees, business hospitality fees, property tax, vehicle and vessel use tax, land use tax, stamp duty, technology transfer fees, mineral resources compensation fees, amortization of intangible assets, employee education expenses, research and development fees, sewage charges, Inventory inventory loss or inventory surplus (excluding inventory loss that should be included in non-operating expenses), provision for bad debts and provision for inventory depreciation, etc.
(XNUMX) Financial expenses refer to the expenses incurred by an enterprise to raise funds required for production and operation, including interest expenses (minus interest income), exchange losses (minus exchange gains), and related handling fees that should be regarded as period expenses.
Article XNUMX: Enterprises must distinguish the cost and expenses of the current period and the costs and expenses of the next period, and shall not arbitrarily accrue and amortize expenses.Industrial enterprises must distinguish between the cost of various products, the cost of in-process products and the cost of finished products, and must not arbitrarily lower or increase the costs of in-process and finished products.
  Chapter VII Profits and Profit Distribution
  Article XNUMX "Profit" refers to the operating results of an enterprise during a certain accounting period, including operating profit, total profit and net profit.
(XNUMX) Operating profit refers to the amount of main business income minus main business costs and main business taxes and surcharges, plus other business profits, minus operating expenses, management expenses and financial expenses.
(XNUMX) Total profit refers to the operating profit plus investment income, subsidy income, non-operating income, minus non-operating expenses.
(XNUMX) Investment income refers to the income obtained by an enterprise from its external investment, minus the investment losses incurred and the provision for impairment of investment.
(XNUMX) Subsidy income refers to the value-added tax actually received by the enterprise according to the regulations, or the fixed subsidy calculated according to the subsidy quota stipulated by the state according to the sales volume or workload, etc. other forms of subsidies.
(XNUMX) Non-operating income and non-operating expenses refer to various incomes and various expenditures incurred by an enterprise that are not directly related to its production and operation activities.Non-operating income includes fixed assets inventory surplus, net income from disposal of fixed assets, net income from disposal of intangible assets, net income from fines, etc.Non-operating expenses include inventory loss of fixed assets, net loss on disposal of fixed assets, net loss on disposal of intangible assets, loss on debt restructuring, provision for impairment of intangible assets, provision for impairment of fixed assets, provision for impairment of construction in progress. Value provision, penalty payout, donation payout, extraordinary loss, etc.
Non-operating income and non-operating expenses shall be accounted for separately and reflected in separate items in the income statement.The non-operating income and non-operating expenditure shall also be set up with detailed items according to the specific income and expenditure, and detailed accounting shall be carried out.
(XNUMX) Income tax refers to the income tax expense that should be included in the current profit and loss of the enterprise.
(XNUMX) Net profit refers to the amount after deducting income tax from the total profit.
Article XNUMX. Income tax expenses of enterprises shall be calculated according to the following principles:
(XNUMX) An enterprise shall, according to the specific circumstances, choose to use the tax payable method or the tax impact accounting method for income tax accounting.
1. The tax payable method refers to the method in which the company does not recognize the amount of the impact of time differences on income tax, and recognizes the current tax payable as the current income tax expense.Under this method, the current income tax expense is equal to the income tax payable for the current period.
2. The taxation impact accounting method refers to the method in which an enterprise confirms the amount of the impact of time differences on income tax, and recognizes it as current income tax expenses based on the total amount of income tax payable and the amount of time differences on income tax.Under this method, the amount of the impact of timing differences on income tax is deferred and allocated to subsequent periods.Enterprises that adopt the tax impact accounting method can choose to use the deferred method or the debt method for accounting.When the deferred accounting method is adopted, when the tax rate changes or new tax is levied, there is no need to adjust the income tax impact amount of the time difference that has been recognized. However, when the income tax impact amount of the time difference is reversed, it should be The original income tax rate calculation is reversed; when the debt method is used for accounting, when the tax rate changes or new tax is levied, the income tax impact amount of the time difference that has been recognized should be adjusted. When the income tax impact amount of the time difference is reversed , it shall be calculated and transferred back according to the current income tax rate.
(XNUMX) Under the tax impact accounting method, an enterprise shall reasonably divide the boundaries between temporal differences and permanent differences:
1. Time difference refers to the difference between the pre-tax accounting profit and the taxable income due to the difference in the time when the tax law and the accounting system recognize the income, expense or loss.Timing differences occur in an accounting period, but can be reversed in a subsequent period or periods.The main types of temporal differences are:
(1) A certain income obtained by an enterprise should be recognized as current income according to the accounting system, but according to the tax law, it needs to be recognized as taxable income in a future period, resulting in a taxable time difference.The taxable timing difference here refers to the timing difference in which the taxable income should be increased in the future.
(2) An expense or loss incurred by an enterprise shall be recognized as an expense or loss in the current period according to the accounting system, but it shall be deducted from the taxable income in a subsequent period according to the tax law, thereby forming a deductible time difference.Deductible timing differences here refer to timing differences that can be deducted from taxable income in the future.
(3) A certain income obtained by an enterprise should be recognized as income in a subsequent period according to the accounting system, but it should be included in the current taxable income according to the tax law, thus forming a deductible time difference.
(4) A certain expense or loss incurred by an enterprise shall be recognized as an expense or loss in a subsequent period according to the provisions of the accounting system, but it can be deducted from the taxable income of the current period according to the provisions of the tax law, thus resulting in a taxable time difference.
2. Permanent difference refers to the difference between the pre-tax accounting profit and the taxable income in a certain accounting period due to the different caliber of accounting system and tax law in calculating income, expense or loss.This difference occurs in the current period and will not be reversed in subsequent periods.Permanent differences are of the following types:
(1) When accounting according to the provisions of the accounting system, it is included in the accounting statements as income, and it is not recognized as income when calculating the taxable income;
(2) When accounting according to the provisions of the accounting system, it is not included in the accounting statements as income, and it is regarded as income when calculating the taxable income, and income tax needs to be paid;
(3) When accounting according to the accounting system, it is recognized as expenses or losses and included in the accounting statements, and deductions are not allowed when calculating taxable income;
(4) It is not recognized as expenses or losses when accounting according to the provisions of the accounting system, but deductions are allowed when calculating taxable income.
(XNUMX) When the deferred method is adopted, the income tax expenses for a certain period include:
1. Income tax payable in the current period;
2. Deferred tax credits or debits arising from timing differences that occurred or reversed in the current period.
The aforesaid current tax payable refers to the current tax payable calculated based on the taxable income and the current income tax rate; the deferred tax credits or debits arising from the timing differences occurring or reversed in the current period are It refers to the amount of income tax payable in the future and the amount of deductible income tax calculated at the current income tax rate for the time difference occurred in the current period, as well as the deferred tax debit or credit that is reversed in the current period.According to the composition of the above current income tax expenses, the formula can be listed as follows:
Income tax expense for the current period = income tax payable for the current period + deferred tax credit amount arising from timing differences occurring in the current period - deferred tax debiting amount arising from timing differences occurring in the current period + transfer in the current period Deferred tax debit amount recognized in prior period reversed - amount of deferred tax credit recognized in prior period reversed in the current period
Deferred tax credit amount arising from timing differences in the current period = taxable timing differences in the current period × current income tax rate
Deferred tax debit amount arising from timing differences in the current period = deductible timing differences in the current period × current income tax rate
The amount of deferred tax debits recognized in the previous period reversed in the current period = the time difference of the deductible taxable income of the current period reversed in the current period (that is, the deductible time difference recognized in the previous period and reversed in the current period) ×The income tax rate when the deferred tax is recognized in the previous period
The amount of deferred tax credits reversed in the previous period confirmed in the current period = the timing difference of the increase in the taxable income of the current period reversed in the current period (that is, the taxable timing difference confirmed in the previous period and confirmed in the previous period) × the previous period recognition Income tax rate when tax is deferred
(XNUMX) When the debt method is adopted, the income tax expenses for a certain period include:
1. Income tax payable in the current period;
2. Deferred tax liabilities or deferred tax assets arising from timing differences that occurred or reversed in the current period;
3. Adjustments to the book balance of deferred income tax liabilities or deferred income tax assets recognized in previous periods due to changes in tax rates or new taxes.
According to the composition of the above-mentioned current income tax expenses, the formula can be listed as follows: current income tax expenses = current income tax payable + deferred income tax liabilities arising from timing differences occurred in the current period - due to timing differences occurred in the current period Deferred income tax assets generated + deferred income tax assets recognized in the previous period reversed in the current period - deferred income tax liabilities recognized in the previous period reversed in the current period + deferred income tax assets reduced due to changes in tax rates or new taxes in the current period or Increased deferred tax liabilities - Deferred tax assets increased or deferred tax liabilities decreased due to changes in tax rates or new taxes imposed in the current period.
Deferred income tax assets or deferred income tax liabilities due to changes in tax rates or new tax increases or decreases in the current period = accumulated taxable time differences or accumulated deductible time differences × (current income tax rate - taxable time recognized in the previous period Income tax rates that apply when there are sexual differences or deductible timing differences
Or = carrying amount of deferred tax - accumulated timing difference of recognized deferred tax amount × current income tax rate
(3) When the tax impact accounting method is adopted, in the case of the deferred tax debit amount generated by the time difference, for the sake of prudence, if the time difference is reversed in the future (usually XNUMX years), there are Only when sufficient taxable income is reversed can the amount of the income tax impact of the time difference be recognized and reflected as a debit of the deferred tax, otherwise, it shall be treated as a permanent difference in the current period.
Enterprises that invest in technological transformation projects in line with national industrial policies, the investment in domestic equipment required for their projects can be deducted from the new corporate income tax in the year when the equipment purchased in the technological transformation project of the enterprise compared with the previous year, and the part that has already enjoyed the The income tax that should be paid for the rental and transfer of domestic equipment with investment credit within the specified period is treated as a permanent difference; the income tax that should be refunded by the enterprise for reinvesting the profits after paying the income tax according to the regulations, and the implementation of the first collection and then the return of the income tax The enterprise that has received the refunded income tax shall offset the current income tax expense when it actually receives the refunded income tax.
Article XNUMX: Enterprises should generally calculate profits on a monthly basis. For enterprises that have difficulty calculating profits on a monthly basis, they may calculate profits on a quarterly or annual basis.
Article XNUMX The annual profit distribution plan (except for the stock dividend distribution plan) submitted to the general meeting of shareholders or similar bodies by resolutions of the board of directors of the enterprise or similar bodies shall be included in the report before the meeting of the general meeting of shareholders or similar bodies is held. Annual profit distribution statement.If the profit distribution plan approved by the general meeting of shareholders or similar bodies is inconsistent with the profit distribution plan for the reporting year submitted for approval by the board of directors or similar bodies, the difference shall be adjusted to the beginning balance of the relevant items in the financial statements of the reporting year.
Article XNUMX. The net profit realized by the enterprise in the current period, plus the undistributed profits at the beginning of the year (or minus the losses made up at the end of the beginning of the year) and the balance after other transfers, are the profits available for distribution.Profits available for distribution are distributed in the following order:
(XNUMX) Withdrawal of statutory surplus reserve;
(XNUMX) Withdrawal of statutory public welfare funds.
A foreign-invested enterprise shall, in accordance with the provisions of laws and administrative regulations, withdraw from the reserve fund, enterprise development fund, employee reward and welfare fund, etc. according to the net profit.
Chinese-foreign cooperative enterprises shall return the investment of investors with profits within the cooperation period according to regulations, and the working capital supplemented by profits of state-owned industrial enterprises shall also be deducted from the profits available for distribution.
Article XNUMX: The profit available for distribution shall be the profit available for distribution to investors after deducting the statutory surplus reserve and statutory public welfare fund.Profits available for distribution to investors shall be distributed in the following order:
(XNUMX) Dividends payable for preference shares refer to the cash dividends distributed by an enterprise to holders of preference shares in accordance with the profit distribution plan.
(XNUMX) Withdrawal of discretionary surplus reserve refers to the discretionary surplus reserve drawn by an enterprise in accordance with regulations.
(XNUMX) Common stock dividends payable refer to the cash dividends distributed by the enterprise to the common stockholders in accordance with the profit distribution plan.The profit distributed by the enterprise to investors is also accounted for in this project.
(XNUMX) Ordinary stock dividends converted into capital (or share capital) refers to the capital (or share capital) converted by an enterprise in the form of distribution of stock dividends in accordance with the profit distribution plan.The capital increased by the profit of the enterprise is also accounted for in this project.
Profits available for distribution to investors, after the above distribution, are undistributed profits (or unrecovered losses).Undistributed profits can be reserved for distribution in subsequent years.If an enterprise suffers a loss, it can be compensated by the profits of subsequent years according to regulations.
The undistributed profits (or unrecovered losses) of the enterprise should be separately reflected in the owner's equity item of the balance sheet.
Article XNUMX. The profits and profit distribution realized by an enterprise shall be accounted for separately, and detailed accounts shall be set up for each item of profit composition and profit distribution for detailed accounting.Statutory surplus reserve drawn by the enterprise, statutory public welfare fund (or drawn reserve fund, enterprise development fund, employee incentive and welfare fund), distributed preferred stock dividends, drawn discretionary surplus reserve, distributed common stock dividends, converted capital (or share capital) common stock dividends, as well as undistributed profits (or unrecovered losses) at the beginning of the year, and undistributed profits at the end of the period (or to cover losses), etc., shall be reflected in the profit distribution statement as separate items.
  Chapter VIII Non-monetary Transactions
  Article XNUMX. Non-monetary transactions refer to the exchange of non-monetary assets between the two parties (including equity-for-equity swaps, but excluding non-monetary transactions involved in business mergers).This exchange involves no or only a small amount of monetary assets.
Monetary assets refer to cash held and assets to be received in a fixed or determinable amount of currency, including cash, accounts receivable and bills receivable, and bond investments prepared to be held to maturity.Non-monetary assets refer to assets other than monetary assets, including inventories, fixed assets, intangible assets, equity investments, and bond investments that are not prepared to be held to maturity.
When determining whether a transaction involving premiums is a non-inclined transaction, the enterprise that receives premiums shall determine if the ratio of the premiums received to the fair value of the exchanged assets is equal to or lower than 25%; the enterprises that pay premiums, It should be determined according to the ratio of the premium paid to the sum of the fair value of the exchanged assets plus the premium paid to be equal to or lower than 25.Its calculation formula is as follows:
Enterprises receiving premiums: premiums received ÷ fair value of assets exchanged ≤ 25
Enterprises paying premiums: premiums paid ÷ ( premiums paid + fair value of assets exchanged) ≤ 25
Article XNUMX. During the accounting of non-monetary transactions, whether one asset is exchanged for one asset, or one asset is exchanged for multiple assets at the same time, or multiple assets are exchanged for one item at the same time. Assets, or the exchange of multiple assets into multiple assets, shall be the book value of the exchanged assets plus the relevant taxes and fees payable as the entry value of the exchanged assets.
If the premium is involved, the enterprise that pays the premium shall use the book value of the exchanged-out assets plus the premium and relevant taxes to be paid as the entry value of the exchanged-in assets; the enterprise that receives the premium shall use the book value of the exchanged-out assets as the book value. The value minus the premium, plus the income that should be recognized and the related taxes and fees that should be paid, are recorded as the value of the exchanged assets.The income that should be recognized for the exchanged assets is calculated and determined according to the following formula:
Income to be recognized = (1- book value of the exchanged asset ÷ fair value of the exchanged asset) × premium
The fair value referred to in this system refers to the amount of voluntary exchange of assets or repayment of debts between two parties who are familiar with the situation in an arm's length transaction.
If the above-mentioned exchanged assets are inventories, the entry value determined in accordance with the above provisions shall be deducted from the deductible value-added tax input tax.
Article XNUMX. In a non-monetary transaction, if multiple assets are exchanged at the same time, the book value of the exchanged assets shall be calculated according to the ratio of the fair value of each asset exchanged to the total fair value of the exchanged assets. The total amount is allocated to determine the entry value of each exchanged asset.
Article XNUMX. In the asset exchange, if the exchanged assets involve receivables, they shall be dealt with according to the following situations:
(XNUMX) For accounts receivable exchanged with one asset, or accounts receivable exchanged with multiple assets, the book value of the exchanged assets shall be used as the entry value of the exchanged receivables.If the original book value of the exchanged receivables is greater than the book value of the assets exchanged, the original book value of the exchanged receivables shall be regarded as the entry value of the exchanged receivables, and the exchanged receivables shall be The difference between the book value of the exchanged asset is greater than the book value of the exchanged asset, which is used as a bad debt provision.
(XNUMX) If an enterprise exchanges one asset into accounts receivable and other multiple assets at the same time, or exchanges multiple assets into accounts receivable and other multiple assets, it shall be based on the original book value of the exchanged receivables. The value is regarded as the entry value of the exchanged receivables, and the entry value of the other assets exchanged except the receivables is based on the ratio of the fair value of each other asset to the total fair value of the other assets exchanged. To the total book value of all the assets exchanged, plus the relevant taxes and fees to be paid (if the premium is involved, the premium plus the income to be recognized, or the premium to be recognized should also be deducted), minus the receivables received in exchange. The balance after the entry value of the money is distributed, and the distribution value is used as the entry value of various other assets exchanged.
In the case of premiums, if the premiums received are less than the book value of the receivables swapped out, the premiums received shall be first offset against the book value of the receivables swapped out, and then dealt with in accordance with the above principles; If the received premium is greater than the book value of the swapped-out receivables, the received premium shall first be written off against the book value of the swapped-out receivables, and then dealt with in accordance with the principle of non-monetary transactions.
  Chapter IX Foreign Currency IndustryBusiness
Article XNUMX "Foreign currency business" refers to the business of receipt and payment, transaction settlement, etc. conducted in currencies other than the standard currency for bookkeeping.
Article XNUMX An enterprise shall set up corresponding foreign currency accounts when accounting for foreign currency business.Foreign currency accounts include foreign currency cash, foreign currency bank deposits, claims settled in foreign currency (such as notes receivable, accounts receivable, prepaid accounts, etc.) and debts (such as short-term borrowings, notes payable, accounts payable, accounts receivable, accounts payable salaries, long-term loans, etc.) should be set up and accounted for separately from the same accounts in non-foreign currencies.
Article XNUMX When an enterprise conducts foreign currency business, it shall convert the relevant foreign currency amount into the amount in the functional currency for bookkeeping.Unless otherwise specified, all accounts related to foreign currency business shall use the exchange rate at the time of the business occurrence, or it can be converted at the exchange rate at the beginning of the current period in which the business occurred.
When an enterprise conducts foreign currency business, if it cannot directly use the benchmark exchange rate of RMB against the US dollar, Japanese yen, Hong Kong dollar, etc. announced by the People's Bank of China as the conversion exchange rate, it shall convert it according to the following methods:
The exchange rate of other currencies other than the US dollar, Japanese yen, Hong Kong dollar, etc. to the RMB shall be calculated according to the benchmark exchange rate of the US dollar to the RMB and the exchange rate of the US dollar to other major foreign currencies in the New York foreign exchange market provided by the State Administration of Foreign Exchange, and the calculated exchange rate shall be as an exchange rate.The exchange rate between the U.S. dollar and other currencies other than the RMB is directly based on the exchange rate between the U.S. dollar and other major currencies in the New York foreign exchange market provided by the State Administration of Foreign Exchange.
The exchange rate between other currencies other than USD and RMB shall be calculated according to the exchange rate between USD and other major foreign currencies in the New York foreign exchange market provided by the State Administration of Foreign Exchange, and the exchange rate after calculation shall be used as the converted exchange rate.
Article XNUMX. The foreign currency amounts in various foreign currency accounts shall be converted into the functional currency at the end of the period at the period-end exchange rate.The difference between the amount of the functional currency converted at the end of the period and the amount of the functional currency of the book is regarded as exchange gains and losses, and is included in the current profit and loss; those belonging to the preparatory period are included in long-term deferred expenses; those related to the purchase and construction of fixed assets The exchange gains and losses arising from the borrowings shall be dealt with in accordance with the principle of capitalization of borrowing costs.
  Chapter XNUMX Accounting Adjustments
  Article XNUMX. Accounting adjustments refer to the accounting policies, accounting estimates, and discoveries originally adopted by an enterprise in accordance with the requirements of national laws, administrative regulations and accounting systems, or in accordance with the provisions of the accounting system under specific circumstances. Adjustments for accounting errors, events occurring after the balance sheet date, etc.
Accounting policy refers to the specific principles followed by an enterprise in accounting and the specific accounting treatment methods adopted by the enterprise.The specific principles refer to the accounting principles adopted by the enterprise in accordance with the unified accounting system of the state and applicable to the accounting system of the enterprise; the specific accounting treatment methods refer to the various accounting treatments that the enterprise can choose in the accounting process. The accounting treatment method selected in the method is suitable for the enterprise.For example, the specific accounting treatment method of long-term investment, the accounting method of bad debt losses, etc.
Accounting estimates refer to the judgments made by an enterprise on the basis of the latest available information for transactions or events whose results are uncertain.For example, the estimated useful life and estimated net residual value of fixed assets, the estimated benefit period of intangible assets, etc.
Accounting errors refer to errors in confirmation, measurement, and recording during accounting.
(XNUMX) Events after the balance sheet date refer to the necessary adjustments that occur between the annual balance sheet date and the date when the financial accounting report is approved for publication.
(XNUMX) Such changes can provide more reliable and relevant accounting information about the financial status, operating results and cash flows of the enterprise.
Article XNUMX. The following items do not belong to changes in accounting policies:
(XNUMX) The transactions or events occurring in the current period are substantially different from the previous ones and new accounting policies are adopted;
(XNUMX) Adopt new accounting policies for initial or unimportant transactions or events.
Article XNUMX. When an enterprise changes its accounting policies in accordance with administrative regulations and rules such as laws or accounting systems, it shall follow the relevant accounting treatment regulations promulgated by the state. If there are no relevant accounting treatment regulations, it shall adopt the retrospective adjustment method. deal with.When an enterprise changes its accounting policy in order to provide more reliable and relevant accounting information, it should adopt the retrospective adjustment method.
The retrospective adjustment method refers to the method of adjusting the relevant items when the accounting policy is changed for a certain transaction or event, as if the new accounting policy was adopted when the transaction or event first occurred.When the retrospective adjustment method is adopted, the accumulated effect of changes in accounting policies shall be adjusted to the retained earnings at the beginning of the period, and the opening amounts of other relevant items in the accounting statements shall also be adjusted together, but the accounting statements of previous years do not need to be restated.
Article XNUMX. The cumulative impact of changes in accounting policies refers to the difference between the amount of retained earnings at the beginning of the year of change calculated retrospectively according to the changed accounting policies and the existing amount.The cumulative effect of changes in accounting policies is the difference between the amount of retained earnings at the beginning of the year of change and the existing amount, assuming that the transactions or events related to changes in accounting policies adopt the new accounting policies when they first occur. difference between.The cumulative impact of changes in accounting policies referred to in this system refers to the cumulative impact on net profit and loss caused by the changes in accounting policies, as well as the resulting cumulative impact on profit distribution and undistributed profits, excluding distributed profits or dividend.Retained income includes statutory surplus reserve, statutory public welfare fund, discretionary surplus reserve and undistributed profits (foreign-invested enterprises include reserve funds and enterprise development funds).The cumulative impact number can usually be calculated by the following steps:
The first step is to recalculate the affected prior-period transactions or events in accordance with the new accounting policy;
The second step is to calculate the difference under the two accounting policies:
The third step is to calculate the income tax impact amount of the difference (if the income tax impact amount needs to be adjusted);
The fourth step is to determine the after-tax difference for each period in the previous period;
The fifth step is to calculate the cumulative effect of the change in accounting policy.
If the cumulative effect cannot be reasonably determined, the accounting policy change should be applied prospectively.The prospective application method refers to the method that when the accounting policy is changed for a certain transaction or event, the new accounting policy applies to the transaction or event that occurs in the current and future periods.When the prospective application method is adopted, there is no need to calculate the cumulative effect of changes in accounting policies, nor to restate the accounting statements of previous years.The amount reflected in the company's accounting book records and accounting statements remains the original amount on the date of change, and the established results of previous years will not be changed due to the change in accounting policies. .
Article XNUMX When preparing comparative accounting statements, for changes in accounting policies during the period of comparative accounting statements, the net profit and loss and other relevant items for each period shall be adjusted, and it is deemed that the policy has been adopted throughout the period of comparative accounting statements.For the cumulative effect of changes in accounting policies before the comparable period in the comparative accounting statements, the retained earnings at the beginning of the earliest period in the comparative accounting statements shall be adjusted, and the figures of other relevant items in the accounting statements shall also be adjusted together.
Article XNUMX. An enterprise shall disclose the content and reasons for changes in accounting policies, the number of impacts of changes in accounting policies, and the reasons why the number of cumulative impacts cannot be reasonably determined in the notes to the accounting statements.
Section XNUMX. Changes in Accounting Estimates
Article XNUMX. Due to the influence of inherent uncertainties in the business activities of enterprises, certain accounting statement items cannot be accurately measured, but can only be estimated.Accounting estimates may need to be revised if the basis on which the estimates are based has changed, or as a result of new information, additional experience and subsequent developments.
Article XNUMX. When accounting estimates are changed, there is no need to calculate the cumulative impact of the change, nor to re-edit the previous year's accounting statements, but new accounting should be adopted for transactions or events occurring in the current and future periods of the change. estimated to be processed.
Article XNUMX If a change in accounting estimates only affects the current period of the change, the amount affected by the change in accounting estimates shall be included in the same relevant items in the current period of the change as in the previous period; if it affects both the current period of the change and the future period, the change in accounting estimates The amount of impact should be included in the relevant items in the current and future periods of the change that are the same as in the previous period.
Article XNUMX. When it is difficult to distinguish between changes in accounting policies and changes in accounting estimates, it shall be handled in accordance with the method for handling changes in accounting estimates.
Article XNUMX. An enterprise shall disclose the content and reasons for changes in accounting estimates, the amount of impact of changes in accounting estimates, and the reasons why the amount of changes in accounting estimates cannot be determined in the notes to the accounting statements.
Section XNUMX. Correction of Accounting Errors
Article XNUMX. Accounting errors discovered in the current period shall be handled according to the following principles:
(XNUMX) For the accounting errors found in the current period related to the current period, the relevant items of the current period shall be adjusted.
(XNUMX) The non-significant accounting errors found in the current period related to the previous period, if they affect the profit and loss, shall be directly included in the net profit and loss of the current period, and other relevant items shall also be adjusted as the current period amount; if the profit and loss is not affected, the current period shall be adjusted. related projects.
A major accounting error refers to an accounting error discovered by an enterprise that makes the published accounting statements no longer reliable.A major accounting error generally refers to a relatively large amount. Usually, the amount of a certain transaction or event accounts for 10 or more of the amount of such transaction or event, and the amount is considered relatively large.
(XNUMX) The major accounting errors found in the current period related to the previous period, if they affect the profit and loss, should be adjusted to the amount of their impact on the profit and loss. If the retained earnings at the beginning of the current period are found, the opening amount of other relevant items in the accounting statements should also be adjusted together; Without affecting the profit and loss, the opening balance of the relevant items in the accounting statement should be adjusted.
(XNUMX) Accounting errors in the reporting year and non-major accounting errors in previous years discovered between the date of the annual balance sheet and the date when the financial and accounting reports are approved for issuance shall be dealt with in accordance with the adjustment matters in the events after the balance sheet date.
For major accounting errors in previous years found between the date of the annual balance sheet and the date when the financial and accounting reports are approved for issuance, the relevant items in the previous years shall be adjusted.
Article XNUMX When preparing the comparative accounting statements, the net profit and loss and other related items of each period shall be adjusted for the major accounting errors in the comparative accounting statement period; for the major accounting errors before the comparative accounting statement period, the To adjust the retained earnings at the beginning of the earliest period in the comparative accounting statements, the figures of other relevant items in the accounting statements should also be adjusted together.
Article XNUMX. An enterprise shall disclose the content of major accounting errors and the correction amount of major accounting errors in the notes to the accounting statements.
Article XNUMX: Enterprises misusing accounting policies, accounting estimates and their changes shall be corrected as major accounting errors.
Section XNUMX. Events after the balance sheet date
Article XNUMX. Obtaining new or further evidence after the balance sheet date, which is helpful for re-estimating the relevant amounts on the balance sheet date, shall be regarded as an adjustment item, and the balance sheet date shall be adjusted accordingly. Adjusted to reflect income, expenses, assets, liabilities and owners' equity.The following are examples of adjustments:
(XNUMX) It has been confirmed that the assets have been impaired;
(XNUMX) Sales return;
(XNUMX) Compensation that has been determined to be received or paid.
The profit distribution related to the period in which the financial accounting report falls in the profit distribution plan formulated by the board of directors or the manager (factory director) meeting after the balance sheet date, or similar institutions, shall also be regarded as adjustment matters. The conversion of profits into capital) shall be treated as a non-adjustment event.
Article XNUMX. Adjustments that occur after the balance sheet date shall be handled in the same way as matters that occurred during the period to which the balance sheet belongs, and corresponding adjustments shall be made to the accounting statements prepared on the balance sheet date. .The accounting statements here include the balance sheet, the income statement and its related appendices and supplementary information content of the cash flow statement, but does not include the positive statement of the cash flow statement.Adjustments that occur after the balance sheet date shall be accounted for in the following situations:
(XNUMX) Matters involving profit and loss shall be accounted for through the subject of "Profit and Loss Adjustment of Previous Years".Adjustments to increase previous years' profits or adjustments to reduce previous years' losses, as well as the adjusted and reduced income tax, are credited to the item "Prior Year Profit and Loss Adjustment"; adjustments to reduce previous years' profits or adjustments to increase previous years' losses, and adjustments to increase The income tax is debited to the item "Prior Year Profit and Loss Adjustment". The credit or debit balance of the "Prior Year Profit and Loss Adjustment" account is transferred to the "Profit Distribution – Undistributed Profit" account.
(XNUMX) Matters involving adjustment of profit distribution shall be directly accounted for through the item “Profit Distribution – Undistributed Profits”.
(XNUMX) For matters not involving profit and loss and profit distribution, adjust the relevant items.
(XNUMX) After passing the above accounting treatment, the figures of the relevant items in the accounting statements should be adjusted at the same time, including:
1. The figures of the relevant items in the accounting statements prepared on the balance sheet date;
2. The beginning of the year of the relevant items of the accounting statements prepared in the current period;
3. When providing comparative accounting statements, the number of previous years in the relevant accounting statements should also be adjusted;
4. After the above adjustments, if the contents of the notes to the accounting statements are involved, the figures of the relevant items in the notes to the accounting statements should also be adjusted.
Article XNUMX Matters that occur or exist after the balance sheet date will not affect the existing status on the balance sheet date, but if not explained, it will affect the users of financial accounting reports to make correct estimates and decisions. Such matters shall be disclosed as non-adjusting matters in the notes to the financial statements.The following are examples of non-adjusting matters:
(XNUMX) Issuance of stocks and bonds;
(XNUMX) huge investment in an enterprise;
(XNUMX) loss of assets caused by natural disasters;
(XNUMX) Significant changes in foreign exchange rates occurred.
For non-adjusting events, the content and estimated impact on the financial position and operating results shall be explained in the notes to the financial statements; if it is impossible to make an estimate, the reasons shall be explained.
  Chapter XNUMX Contingencies
  Article XNUMX Contingent events refer to a situation formed by past transactions or events, the results of which must be confirmed by the occurrence or non-occurrence of uncertain events in the future.
Contingent liabilities refer to potential obligations arising from past transactions or events, the existence of which must be confirmed by the occurrence or non-occurrence of uncertain future events; or current obligations arising from past transactions or events, the performance of which is not likely to result in The outflow of economic benefits from the enterprise or the amount of the obligation cannot be measured reliably.
Contingent assets refer to potential assets formed by past transactions or events, the existence of which must be confirmed by the occurrence or non-occurrence of future uncertain events.
Article XNUMX. If the obligations related to contingencies meet the following conditions at the same time, the enterprise shall treat it as a liability:
(XNUMX) The obligation is a current obligation undertaken by the enterprise;
(XNUMX) The performance of the obligation is likely to cause economic benefits to flow out of the enterprise;
(XNUMX) The amount of the obligation can be measured reliably.
Liabilities that meet the above recognition conditions shall be reflected in a separate item in the balance sheet.
Article XNUMX. The amount of a liability that meets the above recognition conditions shall be the best estimate of the expenditure required to pay off the liability.If there is an amount range for the required expenditure, the best estimate should be determined by the average of the upper and lower limits of the range; if the required expenditure does not exist in an amount range, the best estimate should be determined as follows:
(XNUMX) When a contingent event involves a single item, the best estimate shall be determined according to the most likely amount;
(XNUMX) When a contingent event involves multiple items, the best estimate shall be calculated and determined according to various possible amounts and their probability of occurrence.
Article XNUMX. If all or part of the expenses required to settle the liabilities that meet the above recognition conditions are expected to be compensated by a third party or other party, the compensation amount can only be recognized separately as an asset when it is basically certain that it can be received. The recognized compensation amount should not exceed the book value of the recognized liability.
Assets that meet the above recognition conditions shall be reflected in a separate item in the balance sheet.
Article XNUMX. An enterprise shall not recognize contingent liabilities and contingent assets.
Article XNUMX. An enterprise shall disclose the reasons for the formation of the following contingent liabilities, the expected financial impact (if unforeseeable, the reasons shall be explained), and the possibility of obtaining compensation in the notes to the accounting statements:
(XNUMX) Contingent liabilities formed by discounted commercial acceptance bills;
(XNUMX) Contingent liabilities arising from pending litigation or arbitration;
(XNUMX) Contingent liabilities formed by providing debt guarantees for other entities;
(XNUMX) Other contingent liabilities (excluding contingent liabilities that may cause the outflow of economic benefits to the enterprise very little).
Article XNUMX Contingent assets shall generally not be disclosed in the notes to the accounting statements.However, when a contingent asset is likely to bring economic benefits to the enterprise, the reasons for its formation shall be disclosed in the notes to the accounting statements; if the financial impact of the contingent assets can be predicted, the corresponding disclosure shall also be made.
In the case of pending litigation or arbitration, if the disclosure of all or part of the information is expected to have a material adverse impact on the enterprise according to the provisions of this chapter, the enterprise is not required to disclose such information, but should disclose the reasons for the pending litigation or arbitration.
  Chapter XNUMX Related Party Relationships and Transactions
  Article XNUMX. In corporate financial and business decisions, if one party has the ability to directly or indirectly control, jointly control or exert significant influence over the other party, there is a related party relationship between them; if two parties or If multiple parties are controlled by one party, there is also a related party relationship between them.Related party relationships mainly exist in:
(XNUMX) Directly or indirectly controls or is controlled by other enterprises, and with two or more enterprises controlled by one enterprise (for example, between parent companies, subsidiaries, and subsidiaries controlled by the same parent company) .
A parent company refers to an enterprise that can directly or indirectly control other enterprises; a subsidiary company refers to an enterprise controlled by the parent company.
(XNUMX) Joint ventures.
A joint venture refers to an enterprise whose economic activities are jointly controlled by both parties or parties according to the contract.
(XNUMX) Joint ventures.
An associate is an enterprise over which the investor has significant influence, but is not a subsidiary or a joint venture of the investor.
(XNUMX) Major investors, key management personnel or family members closely related to them.
Individual major investors refer to individual investors who directly or indirectly control 10 or more voting capital of an enterprise; key management personnel refer to those who have the power and are responsible for planning, directing and controlling the activities of the enterprise; close family members , refers to a family member who has the potential to affect a person or be affected by a transaction with a business.
(XNUMX) Other enterprises directly controlled by individual major investors, key management personnel or family members closely related to them.
Enterprises controlled by the state should not become related parties simply because they are under the control of the state, but there are relationships between the enterprises (XNUMX) to (XNUMX) above, or the same key management personnel or close relationship with them according to (XNUMX) above. Each other shall be considered related parties when directly controlled by family members of
Article XNUMX. If there is a control relationship, if the related party is an enterprise, regardless of whether there is any transaction between them, the enterprise type, name, legal representative, place of registration shall be disclosed in the notes to the accounting statements. , the registered capital and its changes, the main business of the enterprise, the shares or interests held and its changes.
Article XNUMX In the event of a transaction between an enterprise and a related party, the enterprise shall disclose the nature, transaction type and transaction elements of the related party relationship in the notes to the accounting statements.These elements generally include: the amount or proportion of the transaction, the amount or proportion of the outstanding item, and the pricing policy (including transactions with no amount or only a nominal amount).
Related party transactions shall be disclosed separately for related parties and transaction types. Related party transactions of the same type may be disclosed in combination without affecting the correct understanding of users of financial accounting reports.
Article XNUMX. The following related party transactions do not need to be disclosed:
(XNUMX) Disclosing in the consolidated financial statements the transactions between the members of the enterprise group included in the consolidated financial statements;
(XNUMX) Disclose related party transactions in the parent company's financial statements provided together with the consolidated financial statements.
  Chapter XNUMX Financial and Accounting Reports
Article XNUMX: Enterprises shall prepare and provide true and complete financial and accounting reports in accordance with the provisions of the Regulations on Financial and Accounting Reports of Enterprises.
Article 6. The financial and accounting reports of enterprises are divided into annual, semi-annual, quarterly and monthly financial and accounting reports.Monthly and quarterly financial and accounting reports refer to financial and accounting reports provided at the end of each month and quarter; semi-annual financial and accounting reports refer to financial and accounting reports provided after the end of the first XNUMX months of each fiscal year; annual financial and accounting reports refer to Financial and accounting reports provided to the public at the end of the year.
In this system, semi-annual, quarterly and monthly financial accounting reports are collectively referred to as interim financial accounting reports.
Article XNUMX. The financial accounting report of an enterprise consists of accounting statements, notes to the accounting statements and a statement of financial situation (except for enterprises that do not require the preparation and provision of statement of financial situation).The contents of the financial and accounting reports provided by the enterprise to the outside world, the types and formats of the accounting statements, and the main contents of the notes to the accounting statements, etc., shall be prescribed by this system; the accounting statements required for the internal management of the enterprise shall be prescribed by the enterprise itself.
Quarterly and monthly interim financial accounting reports usually refer only to accounting statements, unless otherwise stipulated by the unified national accounting system.
The notes to the accounting statements in the semi-annual interim financial accounting report shall at least disclose all major matters, such as the transfer of subsidiaries.Events after the balance sheet date, contingent events, etc. that occur before the semi-annual interim financial accounting report is issued, except for particularly significant events, may not be adjusted or disclosed.
Article XNUMX. The accounting statements provided by the enterprise include:
(XNUMX) Balance sheet;
(XNUMX) Income statement;
(XNUMX) a cash flow statement;
(XNUMX) A detailed statement of the provision for impairment of assets;
(XNUMX) Profit distribution statement;
(XNUMX) A statement of changes in shareholders' equity;
(XNUMX) Segment statements;
(XNUMX) Other relevant schedules.
Article XNUMX. The notes to the financial statements shall at least include the following contents:
(XNUMX) A statement that it does not meet the basic premise of accounting;
(XNUMX) Explanation of significant accounting policies and accounting estimates;
(XNUMX) Explanation of changes in significant accounting policies and accounting estimates;
(XNUMX) Explanation of contingent events and events after the balance sheet date;
(XNUMX) Disclosure of related party relationships and transactions;
(XNUMX) Explanation on the transfer and sale of important assets;
(XNUMX) Explanation on the merger and division of enterprises;
(XNUMX) Details of important items in the financial statements;
(XNUMX) Contributing to the understanding and analysis of other matters that need to be explained in the financial statements.
Article XNUMX. The financial statement shall at least explain the following situations:
(XNUMX) Basic information on the production and operation of the enterprise;
(XNUMX) Profit realization and distribution;
(XNUMX) The increase, decrease and turnover of funds;
(XNUMX) Other matters that have a significant impact on the financial status, operating results and cash flow of the enterprise.
Article 6. The monthly interim financial and accounting report shall be provided to the public within 15 days after the end of the month (the holiday is postponed, the same below); the quarterly interim financial and accounting report shall be provided to the public within 60 days after the end of the quarter; the semi-annual interim financial accounting The report shall be provided to the public within 4 days after the end of the mid-year (equivalent to two consecutive months); the annual financial and accounting report shall be provided to the public within XNUMX months after the end of the year.
When filling out the accounting statements, the unit of amount is "yuan", and the unit below "yuan" is "cents".
Article 50: If the investment of an enterprise in another unit accounts for more than 50% of the total capital of the unit (excluding 50%), or although it accounts for less than XNUMX% of the total registered capital of the unit but has substantial control, it shall prepare consolidated accounting statements.The principles and methods for compiling consolidated accounting statements shall be implemented in accordance with the provisions on consolidated accounting statements in the unified accounting system of the state.
When an enterprise prepares the consolidated financial statements, it shall incorporate the joint venture, and consolidate the assets, liabilities, income, expenses, profits, etc. of the joint venture in accordance with the method of proportional consolidation.
Article XNUMX The accounting statements provided by the enterprise shall be compiled in order of number of pages, with a cover attached, bound into a volume, and affixed with the official seal.The cover should indicate: the name of the enterprise, the unified code of the enterprise, the organization form, the address, the year or month to which the statement belongs, and the date of the report, and shall be specified by the person in charge of the enterprise, the person in charge of accounting work, and the person in charge of the accounting organization (accounting supervisor) Signature and seal; an enterprise that also has a chief accountant shall also sign and seal it by the chief accountant.
Article 2001. This system shall come into force on January 1, 1.
Source of this article: http://kjs.mof.gov.cn/kuaijifagui/200806/t20080618_46254.htm
Date of release: March 2005, 03 Ministry of Finance of the People's Republic of China All rights reserved, if you need to reprint, please indicate the source
This article reprints the enterprise accounting system, in order to learn and share the learning accounting system, so that more enterprise accounting standards can be recorded.
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