Improvement Of Accounting Treatment For Accounts Receivable

At present, many enterprises have large accounts receivable, long account ages, and long term stays, which affect the turnover of enterprises' capital and may cause financial situation to deteriorate.

Through assets exchange, enterprises can revitalize these assets and reduce losses, which is more positive for the solution of "triangle debts" among enterprises.

However, how should the accounting system properly reflect such special economic pactions?

The general principle of determining the value of accounts receivable is to determine the value of accounts receivable. Our current enterprise accounting system stipulates that accounts receivable should be accounted for according to their actual amount.

In the enterprise account book, the book balance of accounts receivable reflects the actual amount of debt that an enterprise has, and the book value of accounts receivable reflects the expected recoverable amount of accounts receivable, that is, the difference between the book balance and the provision for bad debts.

On the other hand, the debtor also uses the actual amount as the account value of the payable, so that the book balance of the debtor's accounts receivable is consistent with the debtor's payable amount, and the two parties can conveniently check the debt and debt.

When there is a cash discount, the seller may also deduct the net value after the deduction as the account value of accounts receivable. At that time, the amount of the debtor and debtor's account is different, but this difference is usually only temporary. With the payment of the payment, or the adjustment of the receivable balance at the end of the term, the difference will soon be eliminated.

The accounting treatment method of accounts receivable obtained in asset exchange business should also be consistent with the general principles of handling accounts receivable, but there is a contradiction between the handling methods stipulated in the enterprise accounting system and the above principles.

Two, analysis of the "accounting system for enterprises" related to the accounting treatment of accounts receivable. "Enterprise accounting system" (2001), respectively, for the accounts receivable account book value is greater than the value of the assets, and the original book value is less than or equal to the book value of the replacement of two different conditions.

1., the method of handling accounts receivable whose original book value is greater than the book value of the assets being exchanged.

If the original book value of the accounts receivable is greater than the book value of the replacement assets, or at the same time, the accounts receivable and other multiple assets should be converted into the original book value of the accounts receivable as its entry value.

This method is based on the value of accounts receivable as the valuation basis of pactions, rather than the acquisition cost at the time of exchange, that is, the value of the assets exchanged, and the accounts receivable should be measured.

The author believes that since the accounts receivable belong to monetary assets, the book value can be used as the basis of valuation when exchanging with other non monetary assets, but the book balance should be used as the value of human accounts.

The accounting system of enterprises stipulates that the book value of accounts receivable should be used directly as the entry value, which can not correctly reflect the actual amount of the creditor's right that the enterprise has changed into the accounts receivable, and also does not correspond to the book balance of the payable accounts payable by the debtor.

2.. The method of handling accounts receivable whose original book value is less than or equal to the book value of assets.

If the original book value of the accounts receivable is less than or equal to the book value of the assets pferred.

The book value of the pferred assets should be converted into the accounts receivable value of the accounts receivable.

In essence, this method is to deal with accounts receivable in accordance with the principle of non monetary pactions.

The author believes that since accounts receivable belong to monetary assets, when it is exchanged with other assets, it is not applicable to the principle of non monetary pactions. Instead, the value of accounts receivable should be used as the basis of valuation according to general paction principles.

In accordance with the provisions of the enterprise accounting system, accounting treatment is carried out. When the original book value of accounts receivable is less than the book value of the replacement assets, it may appear that the entry value of the accounts receivable is much larger than that of the enterprises actually owned.

Case 1: a company uses a batch of raw materials to exchange accounts receivable from company B. to company B, the book balance of accounts receivable accounts for RMB 10 million yuan, and the provision for bad debts is 2 million yuan. The price of raw material market used by a company is 8 million yuan, and its book value is 20 million yuan (excluding value-added tax and stock depreciation allowance).

The accounts receivable value of a company should be 20 million yuan, not only greater than its book value, but also 10 million yuan larger than its book balance, resulting in a false increase in assets.

Three, changing the method of improving accounts receivable treatment. The provisions of the enterprise accounting system ignore the difference between accounts receivable and other assets.

Other assets generally take the cost as the entry value, while the accounts receivable reflect a debt and debt relationship. Its entry value should reflect the actual amount of the creditor's rights, and the actual amount of the accounts receivable is determined by the initial purchase and sale contract, and it will not change due to the pfer of the creditor's rights.

The pfer of accounts receivable is the pfer of assets between the creditor and the debtor other than the third party, and only has the duty of notification to the debtor.

In addition to the debt restructuring of new creditors and debtors at the same time of pfer, the debtor will not change the same debt due to the change of creditors, that is, new creditors should have the same rights as the original creditors after changing accounts receivable.

The original creditor's right to the debtor is not the book value of the original creditor's accounts receivable, but its book balance. The difference between them, that is, the provision for bad debts, reflects only the loss that the creditor may lose on the accounts receivable, not the real loss of the creditor's rights.

The extraction of bad debts is only to meet the requirements of conservatism principle.

No matter what assets are exchanged for receivables, whether they are exchanged for accounts receivable or at the same time, they should be converted into accounts receivable and other assets. They can only be used as the entry value of the accounts receivable in the original creditors' account books, so as to accurately reflect the actual creditor's rights of the enterprises.

At the same time, the original creditor's provision for bad debts of accounts receivable will be accounted for as the new creditor's bad debts.

When the original book value of the accounts receivable is greater than the book value of the replacement assets, the difference represents the profits of the enterprise in the exchange.

In order to prevent enterprises from adjusting the book value of accounts receivable through the end of the write off of bad debts, leading to a reduction in administrative expenses and increasing profits in the current period, it should be treated as capital accumulation rather than bad debt preparation in accordance with the accounting method of Enterprise Accounting - debt restructuring and enterprise accounting system - non monetary pactions.

Case 2: in case 1, if the book value of raw material is 6 million yuan.

Other information remains unchanged.

Accounting should be done as follows: accounts receivable - C 10 million yuan; loans: 2 million yuan for bad debts, 6 million yuan for raw materials, and 2 million yuan for capital reserves.

When the original account value of the accounts receivable is less than the book value of the replacement assets, it shows that the actual losses have occurred in the exchange process. According to the conservatism principle, the difference between the account value of the accounts receivable and the book value of the replacement assets shall be recognized as the extra cash expenses in the current period.

According to case 1, we should make the following entries: accounts receivable, company C $10 million, operating expenses 12 million yuan, loan: bad debt preparation 2 million yuan, raw material 20 million yuan.

When the accounts receivable and other assets are changed into account at the same time, the book value of accounts receivable reflects the original creditors' estimate of the recoverable amount of accounts receivable, which should be used as the basis of accounts receivable. The value of the receivable account is the difference between the original book balance, book balance and book value as a new allowance for bad debts.

This kind of accounting treatment makes the account records of accounts receivable coincide with the amount of relevant vouchers obtained by accounts receivable in assets exchange, and tally with the accounts, so as to satisfy the basic auditing relationship in accounting.

After the accounts receivable are accounted for according to the accounting method mentioned above, the book balance can correctly reflect the creditor's rights actually owned by the enterprise, but its book value may not accurately reflect its expected recoverable amount.

At the end of the accounting period, the accounts receivable should be checked as well as other receivables. The book value should be checked and the allowance for bad debts should be adjusted to make the book value consistent with the expected recoverable amount.