Reconstruction Of Accounting Mode Of Trust Investment Company

With the promulgation and implementation of "trust investment company management regulations" and "trust law", the main business of trust business as a trust company will return to the origin of the trust function of "entrusted financial management". It involves a credit entrusted relationship consisting of three parties, namely, the trustee, the trustee and the beneficiary. The object, scope and requirements of the accounting work have undergone fundamental changes.

However, since the emergence and development of trust act as a new industry in 1979, there has been no clear accounting standard for accounting activities of such trust activities.

The existing accounting standards for enterprises in China only concern the accounting problems of revealing and standardizing the economic activities of general enterprises. The accounting practice of trust companies has long been used in the accounting system of financial enterprises, which is far from meeting the needs of reality, and can not fully and effectively reveal this new and special trust business relationship. It is urgent to find a new accounting mode suitable for the trust industry under the framework of China's accounting standards.

The definition of accounting entity in trust and investment companies refers to the so-called accounting entity, which refers to a specific unit involved or served by accounting.

The definition of accounting entity is to define the spatial scope of accounting and reporting, which is the basic premise for accounting work.

According to the essence and goal of accounting, accounting is a kind of economic information system mainly based on providing financial information. This essentially determines that accounting is a service activity -- providing economic information for users of information, and the determination of its main body should start from the object of information service -- information users.

According to the trust law, the trustee has the obligation to report the trust performance regularly to the client or the beneficiary, that is, the management, utilization, disposition and income and expenses of the trust property, and the client has the right to understand the relevant circumstances of his trust property.

That is to say, an important purpose of trust companies in establishing and managing accounts in accordance with the law is to satisfy the information needs of the trustee.

The relationship involved in trust business is extremely complex, and the client (i.e. the trustee) facing it can be a resident individual or an enterprise legal person. It can be a single customer or a client group.

There are various forms of trust business. Some take a trust variety as a trust business, such as a joint venture trust, and some trust businesses are established and effective with a trust contract, such as enterprise trusteeship, personal estate trust and so on.

In order to satisfy the information needs of different information users and reflect different customers' corresponding trust property, the accounting entity of the trust business must define every income and collect the cost of each trust business by issuing the trust performance report. It can be seen that the accounting entity of the trust business has diversified characteristics, and each business is a "specific accounting entity".

(two) the establishment, confirmation and measurement of accounting elements in trust and investment companies. The accounting elements are the concretion of accounting objects, the cornerstone of basic accounting theory, and the core of accounting standards construction.

China's current accounting element system is composed of 6 accounting elements, such as assets, liabilities, owners' equity, income, expenses and profits. The enterprise accounting standards give a clear definition to each accounting element.

As a legal subject, trust company is also an accounting entity, and we should also execute our accounting element system.

However, based on the independence and characteristics of its trust business activities, the accounting elements involved in accounting have their own characteristics.

The specific contents of the accounting and supervision objects of the trust business are expressed as various kinds of trust assets on the condition of their fund movement, and the property of the trust assets is represented by the property entrusted by the principal, including the property formed by the initial entrustment and the property that has been subjected to the value added by the trustee for the purpose of management and utilization.

In the course of management and utilization of trust property, trust business involves very few debts. Except for clearing debts (such as payable taxes and payable accounts), there is almost no liability. There is no debt to creditors, only related income and expenditure. The trustworthy accounting information needs (such as clients or beneficiaries) care about or demand to disclose the management and utilization of trust property and related income and expenditure.

Therefore, the accounting entity of trust business should set up four accounting elements, such as assets, trust, income and cost, without having to set up accounting elements such as liabilities, profits and owners' equity as other accounting entities.

Among them, the elements of "assets", "income" and "cost" are basically the same as those of other accounting entities, while "trust" is equivalent to the "owner's equity" or "net assets" of other accounting entities, but their economic significance is different.

1, assets.

Trust assets.

That is, the assets of the specific accounting entity of the trust business should refer to the economic resources of the trust company's monetary measurement. In the accounting standards for enterprises, the assets are defined as: "assets are the economic resources that the enterprises own or control, which can be measured in money, including all kinds of property, creditor's rights and other rights".

Its essential feature is mainly an economic resource that can provide the future economic benefits to enterprises.

However, from the perspective of the trust system, the future economic interests of trust property belong to the beneficiary and are not owned by the trustee. From the essence of the trust, the trust company obtains the right to control the trust property and is not owned by the trustee. From the essence of the trust, the trust company obtains the right to control the trust property and does not have possession or control of it in real sense. Moreover, the trust property does not have to pay the same price, nor does it belong to the gift property.

It can be seen that trust property is not the category of trust company's own assets, it can only be regarded as the "special accounting entity" assets outside the legal entity of trust company, that is, trust assets.

Its contents include money, property, power and other trust assets.

2, trust.

It refers to the various properties and materials delivered by the client in accordance with the trust contract documents, which reflects the source of the trust property, similar to the owner's rights and interests of other accounting entities, such as capital trust, real estate trust and so on.

In quantity, the net assets of the trust assets of specific accounting entities are deducted from their deductible items.

The content mainly includes the original value of the trust property and the "trust increment" formed by the management and application of the trust property. The "trust increment" is equivalent to the "profit" of other accounting entities, and the total amount of the trust business is equal to the accumulated net income of the trust business.

The trust assets and their sources should be recognized and measured according to the relevant trust documents and related procedures. If we take the capital trust as an example, we should borrow "cash or bank deposits (trust accounts)" and credit "capital trusts * x varieties". At that time, the source of trust funds is equivalent to the input capital of other accounting entities. During the accounting period, the income and expenditure generated from the operation of trust assets will be shown in the form of "trust increments" in the form of "trust increments" in the form of "profit" of other accounting entities, because the net income and expenditure is an important component of the source of trust property of a specific accounting entity, and the elements of "trust" of its income are more appropriate. Trust property

3, income and expenses.

The elements of "income" and "cost" are basically the same as those of "trust assets" in terms of their definitions. The only difference is the specific accounting entity for trust business.

Its recognition and measurement can be carried out in accordance with the accounting standards for enterprises. If the income is generated by trust management and punishment, the trust assets should be debited, and the goods will be recorded as "income". When the expenses are incurred, the cost will be debited, and credits or asset credits will be credited.

At the end of each accounting period, the difference between revenue and expenditure is "net income and expenditure", which is similar to "profit", reflecting the "trust increment". It is an important way to form trust assets. The profit element is not used here, mainly considering the meaning of "trust", and there is no more complicated content of "profit distribution".

(three) the reconstruction of the accounting equation of trust business and the design of accounting statements. The traditional accounting equation "assets = liabilities plus benefits" is changed into: Assets = trust plus trust increments. The assets are written in the letter "T". The trust is represented by the letter "To". The trust increment is expressed by "AT". The accounting equation is as follows: the T=To+ Delta T equation reflects the total amount of the trust property of the specific accounting entity on the left, and the total amount of the trust property is reflected on the right side, and the accounting equation is simple and clear, which reflects the whole management application and punishment process of the trust assets, that is, the appreciation process of the trust assets.

Accounting statement is the main carrier of accounting information. Scientific design of accounting statements is the guarantee for effective disclosure of accounting information.

Under the new accounting equation, by setting up accounting subjects, accounting, preparing accounting statements and issuing accounting reports, the purpose is to truly and fairly reflect the activities of trust activities, to meet the accounting information needs of clients, beneficiaries and trustees, and to consider the needs of clients and beneficiaries to understand the status of trust property management and their income and expenditure. In the light of the trust business accounting residence, we should design a trust property balance based on the accounting equation, similar to the balance sheet and the two main tables and related schedules of the trust property income and expenditure statement.

Among them, there is a checking relationship between the two main tables: trust increments = net income and expenditure, and the attached table is a further explanation of the elements and related items in the main table.

For the trustee and the relevant regulatory departments, the emphasis is on the standardization and performance of the trust business. The accounting statements should not only reflect the situation of the trust business in general, but also reveal the source of the trust performance.

Therefore, the design of the trust company's accounting statement should be based on the original reporting system of its proprietary business, and consider the establishment of the trust business situation table.

The 1. references are "reference", "enterprise acquisition accounting", Shanghai, Lixin Accounting publishing house, 2000, 53-82 2. Chen Jin Chi, "modern accounting theory", Shanghai, Lixin Accounting publishing house, 1998, 45-176 3. Li Xianhui, "trust and its related legal system", 4., Zou Xiande, "on the special urgency of accounting standards for special industries in China"