Accounting Treatment Of 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 cause the financial situation to deteriorate.

As these accounts receivable are generally difficult to recover in a relatively short period of time, and most likely to become dull bad debts, enterprises should try to revitalize these bad assets.

Although accounts receivable exchange may bring some losses to enterprises, it can be a good way to revitalize accounts receivable, especially in solving the "triangle debts" between enterprises.

The general principle of determining the value of accounts receivable is to determine accounts receivable. Accounts receivable are important liquid assets of enterprises. The current system stipulates that accounts receivable should be accounted for according to their actual amounts.

The actual amount of accounts receivable reflects the amount of debt that an enterprise ows to the debtor.

That is to say, the book balance of accounts receivable refers to the actual amount of a subject's account, which reflects the actual amount of debt that an enterprise has; and the book value of accounts receivable refers to the net balance of the account balance of a subject minus the estimated net amount of related items, which reflects the expected recoverable amount of accounts receivable.

At the same time, 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 accounts payable, 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, "enterprise accounting system" related to the accounting treatment of accounts receivable. The "enterprise accounting system" (2001) separately stipulates that the original account value of the accounts receivable is greater than the book value of the replacement assets, and two different conditions that the original book value is less than or equal to the book value of the replacement assets.

1., when the original book value of the accounts receivable is greater than the book value of the replacement assets, 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.

Since accounts receivable belong to monetary assets, when they are exchanged with other non monetary assets, their value can be used as the basis of valuation, but not based on their book value.

In the enterprise accounting system, it is inappropriate to use the original book value of accounts receivable as its entry value.

After such treatment, the book balance of accounts receivable 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.. If the original book value of the accounts receivable is less than or equal to the book value of the assets, if the original book value of the accounts receivable is less than or equal to the book value of the assets, the book value of the pferred assets should be used as the account value of the accounts receivable.

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

However, since accounts receivable belong to monetary assets, the principle of non monetary pactions is not applicable when accounts receivable are exchanged with other assets.

If the accounts receivable and non monetary assets are exchanged, the value of accounts receivable should be used as the basis of valuation according to general paction principles.

Therefore, the provisions of the enterprise accounting system are contrary to the general principles.

Moreover, in this way, when the original book value of the accounts receivable is less than the book value of the replacement assets, it may appear that the entry value of the accounts receivable is larger than that of the enterprises actually, which leads to inflated assets.

[example 1]: a company uses a batch of raw materials to exchange accounts receivable from company B. to company B, the book balance of the accounts receivable account of company B is 10 million yuan, and the provision for bad debts is 2 million yuan. The price of raw material market for a company's exchange is 8 million yuan, and its book value is 20 million yuan (excluding value-added tax).

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.

It is also very different from the debtor's book record.

Three, the improvement of the method of changing accounts receivable. 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, and accounts receivable reflect a debt and debt relationship. Its entry value should reflect the actual amount of the creditor's rights. The actual amount of the creditor's rights is not decided unilaterally by the creditor on the basis of the cost of acquisition, but is decided by the dual Fang Dacheng contract.

Accounts receivable are accounted for according to the actual amount, and this amount is stipulated by the contract. Only when debt restructuring is made, the amount will change. It will not change due to the pfer of creditor's rights.

The pfer of accounts receivable is the pfer of assets between the third parties outside the creditor and the debtor. Although the debtor should be notified, the debtor will not change the same debt due to the change of creditors at the same time when the debt is restructured at the same time as the pfer is made. The new creditor should have the same rights as the original creditor after changing the 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, because the book balance of accounts receivable reflects the creditor's rights which should be enjoyed by the creditors, while the provision for bad debts only reflects the losses that creditors may lose in accounts receivable. The preparation of bad debts is designed to meet the requirements of the principle of conservatism, and it does not mean that creditors' creditors' rights have actually been lost.

No matter what assets are exchanged for receivables, whether they are converted into one asset or at the same time, they can only use the account balance of the accounts receivable in the original creditor's account book as the entry value, and any other value as the entry value can not accurately reflect the creditor's rights of the enterprise.

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 an asset is changed into an asset, the original book value of the accounts receivable is greater than the book value of the assets to be replaced. The difference between the book value of the accounts receivable and the book value of the replacement assets represents the profits of the enterprises in the exchange. In order to prevent the enterprises from adjusting the book value of the accounts receivable through the write off of bad debts, it will lead to the reduction of the management cost and the increase of the current profits.

[example 2]: in case 1, if the book value of raw material is 6 million, other information will remain unchanged.

Accounts receivable should be treated as follows: accounts receivable - 10 million of the company's loans: 2 million yuan for bad debts preparation, 6 million raw materials, 2 million capital and 2 million yuan, and the original book value of the accounts receivable is less than the book value of the replacement assets. This shows that the actual loss has occurred in the exchange process. According to the principle of conservatism, the difference between the account value of the accounts receivable and the book value of the replacement assets shall be recognized as a non cash outlay in the current period.

The account preparation is 2 million yuan. When the raw materials are exchanged for multiple assets, the account value of accounts receivable reflects the original creditor's estimate of the recoverable amount of accounts receivable. The accounts receivable are relatively easy to calculate than other assets, and the original book value can be used as the basis of accounts receivable. Therefore, the accounts receivable can be calculated at its original book value, but the value of the accounts receivable should still be the original book balance. Instead, the balance between the book balance and the book value of the accounts receivable in the original creditor's account should be replaced as the bad debt provision of the new creditor. According to example 1, the following entries should be recorded: accounts receivable - accounts receivable - 10 million of the company's external expenses, 12 million

In addition, if a company wants to obtain a new creditor's right to change accounts receivable, it is necessary to obtain corresponding credentials in the process of assets exchange, and only the original balance of the creditors is consistent with the amount of the relevant certificates.

Therefore, only when the original creditor's book balance is taken as the entry value can the new creditor conform to the accounting certificate.

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

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.