Because most foreign capital in China rarely involves non-monetary transactions, related party transactions and the impairment of fixed assets, for foreign-funded enterprises, only the statements have changed (especially the income statement has changed completely). In February 2 0 0 6, China promulgated 38 accounting standards for enterprises (hereinafter referred to as "new standards"), which were fully implemented in listed companies in June 2007 and 10 in 2007. According to the agreement reached between China and the European Union and the plan of the Ministry of Finance of China, state-owned enterprises will fully implement the new standards in 2008-2009. Because the implementation of the new standards has a "touch-up" effect on the financial statements of most enterprises, some foreign-funded enterprises began to implement the new standards in 2007. In 2008, the new standard will be fully implemented in enterprises in China. How should foreign-funded enterprises respond to the changes in the new standards? The new rule under the new standard is 1. Inventory accounting has changed, and the "last in, first out" method has been cancelled; Inventory with long production cycle can be capitalized if its borrowing cost meets the requirements; There is a new regulation on the provision for inventory depreciation: in the normal production and operation process, the estimated selling price of finished products should be deducted from the estimated cost, sales expenses and related taxes to determine the net realizable value of the inventory of materials to be processed. 2. Changes in accounting for long-term equity investment "Accounting Standards for Business Enterprises No.2-Long-term equity investment" clearly stipulates that "the long-term equity investment of investment enterprises in subsidiaries shall be accounted by the cost method stipulated in these Standards." According to the original accounting system and accounting standards, the long-term equity investment of investment enterprises in subsidiaries should be accounted by equity method, but in practice, it is rare that "enterprises have the same control or significant influence on the invested units". 3. Significant changes have taken place in investment real estate accounting. Investment real estate is a new concept under the new standards, which refers to real estate held to earn rent or capital appreciation or both. Investment real estate can be accounted by cost model or fair value model.
For investment real estate measured by cost model, depreciation and amortization shall be accrued, and impairment reserve shall be accrued; If the fair value model is adopted to avoid depreciation and amortization of investment real estate, the book value of the investment real estate shall be adjusted on the balance sheet date based on the fair value of the investment real estate, and the difference between the two shall be included in the current profit and loss. 4. Significant changes have taken place in the accounting of fixed assets. The new standard cancels the original value standard of fixed assets (that is, the unit value is 2000 yuan), and the confirmation standard of fixed assets can be set by enterprises themselves, which reduces the accounting adjustments that may be brought by enterprises when submitting accounting statements abroad.
The new standard adjusts the composition of the cost of fixed assets, and stipulates that the estimated scrap cost of fixed assets should be included in the cost of fixed assets. The specified estimated net salvage value refers to the amount obtained from the disposal of fixed assets after deducting the estimated disposal expenses, assuming that the estimated service life of fixed assets has expired and is in an expected state at the end of the service life.
The new standard has changed the accounting treatment of fixed assets inventory surplus, which was treated as an accounting error in the early stage, reducing the operating space for enterprises to adjust profits. 5. Development expenses can be capitalized. All expenses incurred in the process of research and development are treated as expenses in the original accounting system and accounting standards. After successful research and development, the patent fees and attorney fees incurred shall be regarded as the book value of intangible assets.
The new standard treats the expenses incurred by enterprises in the process of R&D differently: the expenses incurred in the research stage are expensed, but the expenses incurred in the development stage are allowed to be capitalized on the premise of meeting relevant conditions. 6. Significant changes have taken place in the accounting measurement of non-monetary assets exchange. In the original standard, the assets exchanged in the exchange of non-monetary assets are measured by the book value of the exchanged assets. The original intention of this regulation is mainly to prevent enterprises from creating false income by exchanging non-monetary assets, but this measurement method is different from international practice. The new standards issued this time have been significantly revised: if the exchange of non-monetary assets is of a commercial nature and the fair value of the exchanged or exchanged assets can be reliably measured, the exchanged assets shall be accounted for on the basis of fair value, and the difference between the fair value and the book value of the exchanged assets shall be included in profits and losses. 7. Long-term asset impairment reserves cannot be reversed, which is aimed at manipulating profits by withdrawing asset impairment reserves. The Accounting Standards for Business Enterprises No.8-Asset Impairment clearly stipulates that long-term asset impairment reserves cannot be reversed, which is one of the substantive differences between the new accounting standards and international financial reporting standards. The long-term assets mentioned here include: fixed assets, intangible assets, productive biological assets, long-term equity investment, goodwill and so on. 8. The income from debt restructuring is included in the current income, and the debts exempted or underpaid by the debtor due to concessions from creditors are included in the capital reserve by the original accounting, and the new standard is changed to the current income; For the business of paying debts in kind, the new standard introduces fair value as the measurement attribute. According to the new regulations, once some insolvent companies are exempted in whole or in part, their earnings will be directly reflected in the current income statement, which may greatly increase their earnings per share. 9. The capitalization of interest on borrowing costs has undergone major changes. The new standards expand the scope of assets capitalized by borrowing costs. The scope of the original standard is only fixed assets. The new standards include fixed assets, inventory that takes a long time to reach the saleable state and investment real estate.
The new standard expands the scope of loans that can be capitalized. The original guidelines stipulated that it was only a special loan. The new standards include special loans and general loans.
The calculation method of capitalized amount under the new standard is different. The new standard stipulates: "special loans are determined according to the actual interest expenses incurred in the current period, MINUS the interest income obtained by depositing unused loan funds into the bank or the investment income obtained by temporary investment." In other words, the special loan interest under the new standard should be fully capitalized. However, under the original standard, the interest of special loans is calculated according to the actual amount used. 10. Significant changes have taken place in income tax accounting. Among the new standards, the income tax standard has changed greatly. The original accounting system and accounting standards used the income statement liability method to calculate deferred income tax in income tax accounting. The concept of tax basis is introduced into the new income tax standard, which requires the balance sheet debt method to calculate deferred income tax and confirm the influence of temporary differences on income tax.
Temporary differences include all timing differences and non-timing differences. The balance of deferred income tax assets and deferred income tax liabilities can be directly obtained by multiplying the temporary difference by the use tax rate, and the balance listed on the balance sheet can directly reflect its impact on the future. The accounting treatment of making up losses under the new standards is very different. Under the original accounting standards, accounting treatment is not required before losses are made up, while under the new accounting standards, deferred income tax assets need to be treated when losses occur. 1 1. The business combination under the accounting treatment method of new business combination can be divided into business combination under the same control and business combination under different control. Enterprises under the same control are the unique provisions of China accounting standards. At present, most business combinations in China are under the same control, which is not necessarily due to the voluntary trading behavior of both the merging party and the merged party, and the merger consideration is not the result of bargaining between the two parties and does not represent fair value. Therefore, the new standard takes book value as the basis of accounting treatment for business combination under the same control, and does not recognize fair value and goodwill to avoid profit manipulation. Moreover, when preparing consolidated financial statements, the merged party is deemed to have been within the scope of consolidation in the period before the merger, and the consolidated income statement includes the income, expenses and profits of the merged party before and after the merger, and the comparative statements should be adjusted accordingly. 12. The standards for financial instruments were promulgated for the first time, but the standards related to financial instruments are still blank in the original accounting standards system in China. The four accounting standards for financial instruments published this time are respectively the Recognition and Measurement Standards for Financial Instruments, the Transfer Standards for Financial Assets, the Hedging Standards and the Presentation Standards for Financial Instruments. The implementation of these standards has a wide and profound impact not only on enterprise accountants, but also on enterprise managers. In particular, derivative financial instruments that most enterprises have never heard of before suddenly parachuted in, and the impact and influence on enterprises can be imagined. 13. The new loss contract treatment standard regulates loss contract for the first time, stipulating that loss contract's relevant obligations meet the confirmation conditions and confirm the estimated liabilities. Example: Company C signed a contract with Company A to purchase 65,438+000 pieces of goods, each with a contract price of 65,438+00,000 yuan. The same kind of goods on the market are 7000 yuan each. The goods purchased by company C are sold to company B at a unit price of 8000 yuan. If Company C unilaterally terminates the contract, it shall pay a penalty of 300,000 yuan. The goods have not been purchased. In this case, the total cost of goods purchased by Company C is 65,438+0,000,000 yuan, and the total price sold to Company B is 800,000 yuan, with a loss of 200,000 yuan. The contract is loss contract. In case of unilateral cancellation, a penalty of 300,000 yuan will be paid. Company C confirms the estimated debt of 200,000 yuan according to the lower of loss of 200,000 yuan and liquidated damages of 300,000 yuan. 14. The accounting treatment method of related party transactions has changed. There are two ways for accounting standards to restrain unfair related party transactions from manipulating profits: one is to reduce the accounting processing space of profit manipulation as much as possible from the perspective of accounting recognition and measurement, and not to recognize the additional income brought by related party transactions as income (the original accounting standards used this method to recognize the excess as "capital reserve"); Second, timely and fully disclose related party transactions, so that accounting information users can judge the fairness of related party transactions and their impact on the company's financial situation and operating results, that is, whether special accounting confirmation or normal accounting confirmation should be carried out for obviously unfair related party transactions.
The related party criterion in the new criterion is called "related party disclosure", which does not study the measurement of related party transactions, that is, the normal confirmation method is adopted to confirm related party transactions and non-related party transactions in the same way. International Accounting Standards No.24 (IASNO.24), American Accounting Standards No.57 (SFASNO.57) and most countries in the world basically adopt this view. This is because there is no essential difference in rights and obligations and legal consequences between transactions between related parties and transactions between unrelated parties. Enterprise countermeasures 1. The person in charge of the unit should change his concept and attach importance to the study of accounting standards. Many enterprise managers think that accounting standards are only applicable to accountants and have nothing to do with non-accountants, which is a very wrong idea. Accounting standards are the rules of the game to measure the performance of enterprises. If the economic activities of an enterprise are regarded as a "game", the person in charge of the unit is the "banker", and the accountant is only the "bag bearer" standing by at best. If the "banker" doesn't understand the rules of the game, how can he hope to win this "game"? Therefore, the person in charge of the unit and enterprise managers must seriously study the accounting standards and deeply understand and apply the "rules of the game". 2. Provide targeted training and strengthen professional judgment. Because there are many changes in the new standards, the human resources management department of an enterprise must conduct targeted training for employees at all levels (including finance, non-finance and management) affected by the new standards. The content of training, besides the basic "rules of the game" in accounting standards, is more important to strengthen the cultivation of professional judgment ability of every employee, especially accountants.
China's original accounting standards were based on rules, which were accounting systems that stipulated what could and could not be done. The new standards implemented this time refer to international accounting standards. The most striking feature of international accounting standards is that they are based on principles, and will not tell you what not to do, but only follow its spirit, that is, allow accountants to make accounts according to their own judgment, so that financial statements can reflect the value of enterprises more truly and fairly. This requires accountants to change their ideas and not to rely too much on institutional things. Greater space for independent judgment requires a big breakthrough in thinking. This can't be done overnight, there will be a continuous and gradual process. 3. Make preparations before the implementation of the new standards and evaluate the possible impact of the implementation of the new standards on enterprises. Because the new standards adopt many new concepts and methods of international financial reporting standards, especially the wider application of fair value, it will have a great impact on the balance sheet and income statement of enterprises. Correctly evaluating these influences of the new accounting standards is the first task that must be done well in the process of transforming the old and new accounting standards. This not only has an important impact on accounting statements, but also has an important impact on business decisions of enterprises.
If it is decided to implement the new standard, there should be a simulation preparation time. When making "simulated" accounts and statements, enterprises should make a timetable from now on according to their own situation, and see if it is necessary to change the system now and when to start making simulated accounts. According to foreign experience, foreign countries must produce a simulation report at the end of the year before integration, so as to experience any major problems at the first time. Otherwise, time will be tight. 4. Choosing an appropriate accounting treatment method The new criterion provides an alternative treatment method for accounting treatment of some projects. For example: ① the impairment of assets cannot be reversed, but it should (can) be reversed before the implementation of the new standards; (2) The LIFO method is abolished in inventory valuation, and the enterprises that used this method need to determine new accounting policies; (3) Enterprises should separately account for research expenses and development expenses, which can be included in intangible assets; ④ Investment real estate can choose cost mode and fair value measurement mode; ⑤ Non-monetary transactions need to determine the fair value of the converted assets; ⑥ Trading assets and available-for-sale financial instruments in financial instruments are measured at fair value, and changes in fair value are treated differently; Long-term equity investment is handled separately, and the equity investment difference is not confirmed; ⑦ Business combination is divided into business combination under the same control and business combination under different controls, the former adopts the method of combining rights and interests, and the latter adopts the method of purchasing; (8) If the capitalization scope of borrowing costs is expanded, it is necessary to determine the capitalization scope; Wait a minute. 5. Adjust the accounting process to adapt to the new accounting system and new standards, and make all-round accounting provisions for economic and business matters that may occur in enterprises, which is quite different from the original accounting standards. The confirmation and measurement of accounting elements, accounting statements and their presentation have undergone major changes, and the accounting subjects, contents and some accounting processes of enterprises need to be changed, requiring enterprises to change their financial management methods accordingly to meet the requirements of the new accounting system; At the same time, enterprises need to establish their own accounting methods according to the new standard system. 6. Further strengthening the management of enterprise financial information system The adjustment of enterprise accounting account and report structure directly leads to the adjustment of enterprise financial information system and its related functions. The measurement of fair value and the extraction of impairment reserve need a lot of basic data support, so enterprises need to develop and improve or upgrade the functions of software suppliers themselves to realize functional transformation.
In addition, to use the measurement basis of fair value, it is necessary to reflect the business risks behind the changes of enterprise assets in a timely manner, and enterprises need to use information systems to establish a timely risk early warning system to support the use of fair value. 7. The new standards for strengthening the basic work of tax accounting will be different from tax laws and regulations in many aspects, such as income recognition, asset evaluation, fair value use, capitalization and expense treatment. Enterprises need to analyze and judge the differences between them, correctly calculate taxes according to tax laws and regulations, confirm the calculation basis of various assets and liabilities according to the balance sheet view, and account for deferred income tax assets and deferred income tax liabilities, and need to strengthen the basic work of tax accounting. 8. Revise the accounting manual, adjust and improve the internal control system (1), revise the enterprise accounting manual, and formulate specific operational guidelines for complex accounting business; Re-set and adjust accounting posts according to the requirements of the new accounting standards; (2) Adjust and improve the internal control system of enterprises. For example, establish internal control over financial derivatives transactions. Another example is to establish the internal control of asset impairment and fair value determination according to the actual situation. (3) The Finance Department should strengthen the accounting and management of contracts and strictly control contract losses. 9. Changing the implementation of the new standard of profit-oriented budget management control system will have an impact on the internal and external environment, financial situation and operating results of enterprise budget management. Enterprises need to reconsider the scientific nature of the budget index system, the effectiveness and incentive effect on enterprise management guidance, pay more attention to the management of cash flow, asset quality and operational risk, and revise the performance evaluation index to make enterprises pay more attention to the balance sheet and cash flow statement from the income statement. The profit-oriented budget management control system of enterprises needs to be changed. 10. To adjust the decision-making mode of an enterprise (1), it is necessary to change the investment management mode. The new standard reclassifies investments according to management purposes, and divides them into trading investments, held-to-maturity investments or investments for sale. The corresponding measurement method also adopts open value or amortized cost. At the same time, the investment and operation risks of enterprises are fully revealed and reflected in accounting, and different accounting standards need to be formulated according to different investment varieties and different situations of investment projects, which increases the difficulty of professional judgment and puts forward higher requirements for investment management of enterprises. (2) The dividend distribution policy needs to be adjusted accordingly. With the implementation of the new accounting standards, changes in the classification of assets and liabilities and some valuation methods, especially the introduction of fair value measurement model, the current net profit and distributable profit indicators reflected in accounting statements have changed. The book profit of an enterprise includes not only the embodiment of its own operating performance, but also the impact of changes in the external environment of the enterprise on profits, that is, unrealized gains and losses (the difference between fair value and book value is directly included in the current profit and loss), and there is no corresponding cash flow support, so it should be considered.
References: Peng Xia issued the new accounting standards for business enterprises: historical background and practical significance [journal paper]-Accounting Monthly (comprehensive edition) 2006(03) Liu Xiangdong analyzed the main characteristics of the new accounting standards and their impact on the future of enterprises 2007( 10) Li Yanmei analyzed the impact of the new accounting standards for business enterprises in China [journal paper]-Shopping mall modernization 2006(09).