Eight Interpretation Of New Accounting Standards

Rules: the Financial Accounting Standard No. thirty-fourth earnings per share issued yesterday by the Ministry of finance has made detailed provisions on the calculation method of earnings per share of listed companies.

The guidelines require that in addition to calculating the basic earnings per share, we must also calculate diluted earnings per share.

According to this criterion, the earnings per share of listed companies will be greatly changed when issuing new shares, repurchasing shares and issuing convertible bonds and warrants.

When a listed company has the behavior of issuing new shares and repurchasing shares, the time of issue or repurchase will affect the calculation results of earnings per share.

The new standard stipulates that the total number of shares should be weighted average.

The formula is: the weighted average of ordinary shares issued in the same period: the number of shares issued at the beginning of the ordinary shares, the number of shares issued in the current issue of ordinary shares, the time when the shares are issued, the time of reporting period - the number of shares repurchased by common stock in the current period, the repurchase time, and the reporting period.

In addition, the new guidelines call for the calculation of diluted earnings per share.

For companies issuing convertible bonds or warrants that may affect the size of capital stock, the diluted earnings per share will differ significantly from the original earnings per share.

According to the criteria, if there are dilutive common stocks such as convertible bonds and warrants, the net profit of the current period and the weighted average of ordinary shares should be adjusted respectively. The weighted average number of capital stock must be added to the part of the ordinary share converted into the ordinary shares.

Interpretation: Take 1 listed companies with 100 million yuan convertible bonds as an example, assuming that the stock price is 5 yuan, the company's existing share capital is 100 million shares, and the net profit is 120 million yuan. Then, if the convertible bonds are all converted into shares, the company's capital stock will increase by 20 million shares.

At this time, its basic earnings per share were 120 million yuan, 100 million shares = 1.2 yuan / share, and its diluted earnings per share were 120 million yuan, 120 million shares = 1 yuan / share.

　　債務(wù)重組重新帶來高利潤 　　記者 岳敬飛 　　規(guī)則:新會計準(zhǔn)則,詳細(xì)規(guī)定了可能產(chǎn)生損益(根據(jù)慣例,主要為利潤)的債務(wù)重組四大情況: 　　第一,債務(wù)人應(yīng)當(dāng)將重組債務(wù)的賬面價值與實(shí)際支付現(xiàn)金之間的差額,確認(rèn)為債務(wù)重組利得,計入當(dāng)期損益；第二,債務(wù)人以非現(xiàn)金資產(chǎn)清償債務(wù)的,債務(wù)人應(yīng)當(dāng)將重組債務(wù)的賬面價值與轉(zhuǎn)讓的非現(xiàn)金資產(chǎn)公允價值之間的差額,確認(rèn)為債務(wù)重組利得,計入當(dāng)期損益；第三,當(dāng)債務(wù)轉(zhuǎn)為資本,重組債務(wù)的賬面價值與股份的公允價值總額之間有差額,也可產(chǎn)生損益；第四,修改其他債務(wù)條件,使得重組債務(wù)的前后入賬價值之間存在差額,也可產(chǎn)生損益。

The interpretation of the new accounting standards on debt restructuring has basically returned to the situation in 1998, which is roughly the same as the relevant provisions in the United States.

"Professor Chen Xinyuan, Dean of the Accounting School of Shanghai University of Finance and Economics, told reporters yesterday that" the listed companies may get huge profits.

"Chen Xinyuan said that from 1998 to 2001, debt restructuring profits can be included in current profits and losses.

That is to say, a listed company can make profits accordingly.

However, the accounting standards which were introduced in 2001 will include profits from debt restructuring into capital reserves of companies and no profits can be generated.

For the listed company as a debtor, the new debt restructuring criteria mean that once the creditors concession, the benefits of the listed company will be directly included in the current income and enter the profit statement.

For the listed companies unable to repay their debts, if the debt is completely or partially exempted, their earnings per share will be greatly increased.

"Chen Xinyuan said.

For example, a listed company owes 200 million yuan to the bank.

If the debt is restructured, the bank agrees to fight 50 percent off.

No matter what the company pays in cash, or with non cash assets, or bank debt to equity swap, profits can be made from this restructuring.

The industry experts pointed out that for *ST and ST companies, they can not fantasize about getting a hat or a pick from the debt restructuring benefits.

The reason is that the cap and pick conditions stipulated by the Shanghai and Shenzhen Stock Exchange are positive after net non recurring gains and losses.

The profits brought by debt restructuring to the listed companies will be included in the non - business income when the actual accounting operation is carried out.

Therefore, it will be deducted when picking up the cap and picking stars.

He Jun, the chief executive of the company, took the red tape company to reduce the performance of the company. The rules of the Accounting Standards No. eleventh - share payment were added to the accounting standards. The purpose is to standardize the confirmation, measurement and disclosure of the relevant information.

The key elements are stock option cost and fair value measurement.

Share payment is a kind of paction which is granted by an enterprise to provide services or commodities for employees and other parties, or to assume liabilities based on equity instruments. It is divided into equity payment and share settlement in cash.

If the rights and interests settled immediately after the granting of the right to grant the right to the employee's services or other similar services, the shares should be paid at the relevant cost or expense according to the fair value of the equity instruments, and the capital accumulation shall be increased accordingly; the share settlement of the rights and interests settled within the waiting period of service or the performance performance requirement can be exercised. In each balance sheet date during the waiting period, the services obtained in the current period will be included in the relevant costs or capital and capital reserves according to the fair value of the date of grant of the equity instruments.

On the day of exercise, the company calculates and determines the amount that should be pferred to the paid in capital or capital stock according to the amount of the equity instruments actually exercised, and pfers it to the paid in capital or capital stock.

Interpretation of the stock market: yesterday's announcement of the stock option incentive scheme ZOJE shares is to obtain directors, supervisors and senior management services to grant stock options pactions, to take the right to settle the way.

ZOJE stock stock option incentive is a share payment that can be exercised only after the completion of the service in the waiting period (passing the performance appraisal) and the achievement of the required performance (the weighted average return on assets of the previous year and the weighted average return on net assets after the deduction of non recurring gains and losses) is no less than 10%.

According to the accounting standards for Enterprises No. eleventh, ZOJE stock, after the implementation of stock option incentives, ZOJE shares need to pay the fair value of shares approved according to the shares to be paid into the relevant cost and capital reserves.

Yue Jingfei's rule of "asset making" and "": "the accounting standards for Enterprises No. seventh - non monetary assets exchange" promulgated yesterday stipulates that non monetary assets exchange should satisfy the following two conditions: the fair value and the corresponding duty charge should be used as the cost of assets replacement. The difference between the fair value and the book value of the replacement assets should be included in the current profits and losses: first, the exchange has commercial essence; and the fair value of the assets pferred or exchanged for assets can be reliably measured.

Interpretation of non monetary assets: the exchange of non monetary assets is again measured by fair value.

The result is that the exchange will generate profits again.

The book value method used before did not generate profits.

If the above two conditions can not be met at the same time, the book value of the replacement assets will be used as the replacement cost and the profit and loss will not be determined.

The above provisions specifically point out that if there is a correlation between the two parties, the exchange may lead to no commercial nature.

Professor Chen Xinyuan, Dean of the Accounting School of Shanghai University of Finance and Economics, said that the introduction of fair value method to new guidelines is of great significance to stock investors.

Because fair value calculation is more in line with the actual situation of the company, and it can generate profits.

Chen Xinyuan gave an example: a listed company holding a real estate in Changning District, Shanghai, bought 80 million yuan in 1999.

With the soaring real estate prices in recent years in Shanghai, the market value of the property has reached 180 million yuan.

Now the listed company will change the property, if the original accounting standards, will still be calculated at the book value of 80 million yuan.

Now, if we adopt the fair value calculation of the new guidelines, we will generate a profit of 100 million yuan.

For investors, this is very good.

However, Chen Xinyuan also expressed his concern: "fair value is not easy to get, the key is how the assessment agencies evaluate.

After the implementation of the new accounting standards, how to standardize the assessment of the market has become a top priority.

We must not comment on what we want to comment on. We must be truly fair.

"The profits of the enterprises in the park," Zhu Defeng, the special researcher of the "roller coaster", said: "investment real estate" is a new important content in the enterprise accounting standards system.

The so-called investment real estate refers to the real estate that is held to earn rent or capital appreciation or both.

It mainly includes the tenancy of land, the right to use land that has been held for a long time and ready for increment, and the buildings owned and rented by the enterprise.

However, it does not include self owned real estate and real estate as a stock held for the purpose of producing goods, providing labor services or operating management.

Before the promulgation of this standard, the existing accounting standards system should only answer the question of how to conduct accounting treatment and how to make a statement in the accounting statement when the real estate developed by the real estate development enterprise is used for external rental in the relevant questions and answers (four) concerning the implementation of the enterprise accounting system and related accounting standards.

While maintaining the current cost mode, this standard also introduces the fair value model, but it has certain preconditions for the use of the model.

Since the fair value of investment real estate reflects the rental income of the current lease and the rental income derived from the current market assumption, the change in the fair value of the investment real estate is recognized as a profit or loss in the fair value mode rather than depreciation or allocation.

Interpretation: the impact of this code will be mainly reflected in the enterprises in the park, especially those listed companies who want to obtain long-term profits through rental income to enhance their sustainable development ability. Because they are more in line with the premise of adopting the fair value mode, that is, the active real estate paction market in the locality, and the enterprises can obtain similar or similar real estate market prices and other related information from the market, so that the fair value of the investment real estate can be reasonably estimated.

Therefore, once they adopt the fair value model, the depreciation of the fair value of the investment real estate will not be required any longer, but the change of the fair value of the investment real estate will be recognized as profit and loss.

In the case of Hongkong's old real estate company, Tai Koo, for example, the implementation of the Hongkong Accounting Standard No. fortieth - investment property, which is basically consistent with the international accounting standards fortieth investment real estate, has been retroactively adjusted. The retained earnings in the early 2004 and January 1, 2005 increased by HK $14 billion 700 million and HK $26 billion 800 million respectively.

The net profit of the first half of 2004 and the year 2004 increased by HK $74 million and HK $12 billion 200 million, respectively.

Yue Jingfei: rule No. eighth, accounting for assets impairment, No. seventeenth of the accounting department clearly stipulates: "once the asset impairment losses have been confirmed, it can not be turned back in the subsequent accounting period."

"Impairment of assets" means the recoverable amount of an asset is lower than its book value.

The previous accounting standards allowed the return of assets impairment to provide a profit manipulation space for listed companies.

Interpretation: a major channel for profit manipulation of Listed Companies -- the return of asset impairment losses will be sealed.

Liu Yuting, director of the accounting department of the Ministry of finance of the Ministry of Finance and economics, pointed out at the previous seminar that the provision for impairment must not be turned back. It is a matter of great consideration for the current value reduction and the return of profits.

Professor Chen Xinyuan, Dean of the Accounting School of Shanghai University of Finance and Economics, pointed out yesterday that the new asset impairment provision is a major change that has to be changed.

Previously, asset impairment losses could be reversed.

Although there are substantial differences between the provisions of the non reversion and IFRS, this is in line with the regulatory status of China's listed companies.

For the securities regulatory authorities, it is not necessary to turn back to be more conducive to supervision; it is also of great benefit to the Ministry of Finance and the SASAC, especially the SASAC, which advocates dividends to shareholders.

According to the industry insiders, this new regulation means that those companies who prefer to use the large margin to prepare for the adjustment of profit margin may rush back the impairment allowance in 2006. Otherwise, after the implementation of the new accounting standards in January 1, 2007, these "hidden profits" will never be surfaced again.

Chen Xinyuan said that for listed companies, the actual situation is that earnings disclosure is more important than recognition.

The accounting treatment of listed companies' income tax is concerned by Zhu Defeng, a special researcher, the rule of income tax, which is an important part of the revision of the enterprise accounting standards system.

This criterion does not divide the difference between pre tax accounting profits and taxable income into permanent and temporal differences in accordance with the original Interim Provisions on accounting treatment of enterprise income tax.