The new principle introduces the measurement form of fair value, which indirectly counts changes in fair value that meet certain conditions into profit and loss, and puts unfinished capital gains and losses into the income statement. The following is a sample paper on the changes and analysis of the income statement under the new accounting standards for business enterprises that I J.L. shared with you.
Under the principle of second restatement, this paper stops the concept change, accounting quality change, presentation change and extension change of operating profit, total profit and net profit of the income statement. When analyzing the income statement under the new accounting standards for enterprises, we should pay attention to three aspects: recurring income and extraordinary income, confirmed completed income and unfinished income, gains and losses included in profits and losses, and gains and losses included in owners' equity.
Focus: new principles; Balance sheet; profit statement
In 2006, China's Ministry of Finance issued a new accounting standard system for enterprises, which strictly defined the definitions of accounting elements such as assets, liabilities, owners' equity, expenses, expenses and profits. Understand the requirements of accounting elements recognition and measurement standards, introduce the concept of balance sheet view, highlight the central position of balance sheet, and change the situation that income statement dominates the financial reporting system of enterprises under the concept of expenditure and expense. Therefore, under the new accounting standards for business enterprises, great changes have taken place in the income statement of enterprises.
I. Changes in the Income Statement under the New Accounting Standards for Business Enterprises
The change of (1) concept: expenditure view and balance sheet view.
Over the years. China's accounting principles follow the concepts of expenditure and expense. In the view of expenditure, income is the difference between expenditure and various related capital expenditures in a certain period of time. That is, income = expenditure-expense. Do you understand Article 54 of the Accounting Standards for Business Enterprises (Basic Standards), which came into effect on July 1? Profit is the operating effect of an enterprise in its life cycle. Including operating profit, net investment income and net non-operating income and expenditure. ? In other words, the data of each item in the income statement and balance sheet are the result of thinking about expense recognition and expense ratio. In the view of expenditure, the balance sheet is a by-product of the income statement.
The new accounting standards system for enterprises released in 2006 introduced the concept of balance sheet view, that is, when accounting standards makers formulate accounting standards for certain transactions or events. First of all, the measurement of assets or liabilities arising from such transactions should be defined and standardized; Then, according to the defined changes in assets and liabilities, revenue is recognized. Article 37 of the basic principles of the new accounting standards for enterprises? Profit refers to the operating effect of an enterprise in a certain accounting period. Profits include expenses minus expenses, gains and losses indirectly included in current profits, etc. Gains and losses indirectly included in current profits? Refers to the gains or losses related to the owner's investment in capital or distribution of profits to the owner, which should be included in the current profit and loss and will lead to the increase or decrease of the owner's equity. Complexly speaking, the measurement of profit in the income statement depends on the measurement of assets and liabilities, and the income statement can be regarded as a statement reflecting the changes of net assets during the life cycle of an enterprise.
(2) Measurement change: the fair value of historical capital.
1993 Do you understand Article 19 of the Accounting Standards for Business Enterprises (Basic Principles)? All wealth materials should be priced according to the actual cost at the time of acquisition. When the price changes, its book value shall not be adjusted unless otherwise stipulated by the state? In other words, historical cost is the fundamental attribute of accounting measurement.
The new standards issued in 2006 no longer simply emphasize historical cost as the fundamental measurement attribute, but introduce fair value excessively cautiously, and introduce fair value measurement forms in investment real estate, biological assets, exchange of non-monetary assets, asset impairment, debt restructuring, financial instruments, hedging, business combination under different controls and so on. , and the fair value changes that meet certain conditions are indirectly included in the profit and loss and entered into the income statement. Stopping accounting measurement according to fair value can more objectively reflect the financial situation and operating effect of enterprises, thus providing investors with more relevant information, which is conducive to improving the usefulness of accounting information and achieving the purpose of financial accounting reporting.
(3) Changes in the presentation of statements
Great changes have taken place in the presentation of the income statement under the old and new standards. First of all, the income statement under the new standards no longer distinguishes between the main business and other businesses. But the consistent thing is. Operating expenses? 、? Operating costs? 、? Business tax and surcharges? Stop the demonstration. On the one hand, based on the market economy, the business scale of enterprises is expanding from time to time, the business content is diversified, and the expenses of different businesses are equivalent, and the boundary between the main business and other businesses was once blurred; On the other hand, it is also the convergence of China's new accounting standards system and international standards.
Secondly, because the new standard introduces the form of fair value measurement. Has the income statement under the new standards been added? Gains from changes in fair value? Project; The income statement under the new standards is also presented separately? Asset impairment loss? Project, detailed demonstration? Investment income of joint ventures and joint ventures? 、? Loss from disposal of idle assets? Projects, etc. And will? Operating expenses? Change to? Sales expenses? , will it? Investment income? Incorporating into the scope of operating profit makes accounting information more concise and clear. It is convenient for users of financial reports to fully understand the financial situation and operating results of enterprises.
(4) Changes in operating profit, total profit and net profit extension.
Because the new enterprise accounting standards system highlights the concept of balance sheet view. The introduction of fair value measurement form, the accounting treatment of income tax by balance sheet debt method and the change of presentation have greatly changed the operating profit, total profit and net profit extension in the income statement under the new standards.
The profit statement meeting under the principle? Investment income? This project is included in the scope of operating profit, which changes the situation that operating profit only reflects the regular income of normal business activities of enterprises under the old standards, that is, the remuneration obtained by enterprises using assets for foreign investment also belongs to operating profit, which conforms to the concept of balance sheet view.
Has the income statement under the new standards been added? Gains from changes in fair value? In the project, the unfinished capital gains and losses are included in the income statement, which makes the operating profit, total profit and net profit include local capital gains, which conforms to the concept of comprehensive income and balance sheet.
The accounting treatment of income tax adopts the balance sheet debt method. That is, when an enterprise obtains assets and liabilities, it should first determine its tax basis, and the difference between the book value of assets and liabilities and its tax basis is a temporary difference (taxable or deductible), and then confirm deferred income tax assets or deferred income tax liabilities. The balance sheet creditor's rights method is essentially the expression of the balance sheet view. At the same time, the income tax accounting based on the balance sheet liability method is implemented, so that the income tax expenses listed in the income statement under the new principle can match the current accounting profit. Because the provisions of tax law are not different from accounting principles, it increases the fluctuation of after-tax profits.
Second, the analysis of the income statement under the new accounting standards for business enterprises
Compared with the old standards, the new enterprise accounting standards system is more advanced in concept, more complete in system and richer in content. According to International accounting practices, the new standards have made stricter and more superstitious provisions on the generation and disclosure of accounting information, emphasized the authenticity and reliability of financial statements, and completed the convergence with international accounting standards in minor aspects and key links. When I analyze the income statement under the new standards in practice, I think there are three aspects worthy of attention.
(1) Recurrent income and extraordinary income
Does the operating profit in the income statement under the old principle not include? Investment income? Project. Therefore, when analyzing the profit situation of enterprises. It is generally believed that operating profit is the recurrent income of enterprises, and many enterprises will also use the target of recurrent income when they stop the assessment, which is mainly used to reflect the operating income obtained through the efforts of operators. What will be in the income statement under the new principle? Investment income? The project is included in operating profit, plus? Gains from changes in fair value? Therefore, when analyzing the profit statement of an enterprise or stopping the assessment of the enterprise, we should pay attention to the changes in the extension of operating profit, and the recurring income should be re-analyzed and calculated to truly reflect the recurring income of the enterprise.
(2) Confirmed completed income and confirmed unfinished income
Regarding the certainty of income, the old standard follows the concept of expenditure, so the income reflected in the income statement is not the total income of the enterprise. That is, it does not include the income from the increase (or decrease) in the value of assets held, and the income in the income statement is only the income that has been confirmed; The new standard follows the balance sheet view and introduces the measurement form of fair value. And changes in fair value that meet certain conditions are indirectly included in profit and loss and enter the income statement. The income in the income statement includes not only the income that has been confirmed as completed, but also the income generated by the appreciation (or impairment) of the value of the assets that have been confirmed as unfinished. Therefore, enterprises that implement the new standards should pay attention to distinguish the confirmed completed income from the confirmed unfinished income when making profit distribution plans. This is because on the one hand, it has been confirmed that the unfinished income does not bring cash flow to the enterprise, and excessive profit distribution will affect the development and operation of the enterprise; On the other hand. When the market value of assets is distorted or violently shaken, excessive profit distribution can imply the return of capital, thus damaging the profitability of enterprises.
(3) Gains and losses included in profits and losses and gains and losses included in owners' equity.
The new principle introduces the measurement form of fair value, which indirectly counts changes in fair value that meet certain conditions into profit and loss, and puts unfinished capital gains and losses into the income statement. It makes the income statement include local capital gains, which is in line with the comprehensive income view. However, the income statement under the new standards is not a complete comprehensive income view. What does the comprehensive income view think? Income is the total amount of equity changes confirmed by all transactions or enterprise revaluation except dividend distribution and capital transactions in a specific period? ("Accounting Practice" Tang, Qian), but will China's new standards? Gain and loss? Divide? Gains and losses indirectly included in current profits and losses? And then what? Gains and losses indirectly included in owners' equity? . For example, Article 16 of the Accounting Standards for Business Enterprises No.3 Investment Real Estate? When owner-occupied real estate or inventory is converted into investment real estate measured at fair value, the investment real estate shall be priced at the fair value on the conversion date. If the fair value on the conversion date is lower than the original book value, the difference shall be included in the current profit and loss; If the fair value on the conversion date is greater than the original book value, the difference shall be included in the owner's equity. ? Therefore, the report users' understanding of enterprise income should be one-sided. We should not only analyze the income statement, but also pay attention to the statement of changes in owners' equity.
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