Some Thoughts On The Implementation Of Enterprise Accounting System By Foreign Invested Enterprises

According to the requirements of the Ministry of Finance on the implementation of the accounting system for enterprises with foreign investment (hereinafter referred to as "accounting rules for enterprises)", the foreign investment enterprise has implemented the enterprise accounting system since January 1, 2002, in accordance with the requirements of Document No. 2001, No. 62, hereinafter referred to as "62".

The accounting system for foreign invested enterprises in People's Republic of China issued by the Ministry of Finance in June 24, 1992 and the relevant accounting and accounting statements shall be abolished simultaneously.

From 1 to April 2003, my office audited the financial accounting reports of 310 foreign invested enterprises entrusted by the 2002.

This article will introduce some thoughts on the problems, the main reasons and the measures to be taken in the implementation of the enterprise accounting system by foreign investors.

The main problem of 1. is that most of the enterprises have not checked their assets and liabilities.

At the end of 2001, the document No. 62 issued by the Ministry of finance was actually pmitted to foreign investment enterprises at the beginning of 2002. With the relatively weak foundation of enterprise management and accounting work, most enterprises basically failed to check the assets and liabilities according to the requirements of the documents.

A small number of enterprises have not carried out the final inventory of physical assets at the end of the period. According to statistics, there are at least 39 enterprises with reservations.

2. most enterprises do not extract the eight assets impairment allowance.

Of the 310 enterprises audited, only one enterprise has been prepared to extract assets impairment.

The main reasons for not mentioning or mentioning assets impairment are as follows: first, most of the assets impairment provisions are deducted before tax deduction, and enterprises' enthusiasm for asset impairment is not high.

Two, the technical requirements for the provision of assets impairment are high, the work is difficult and the process links are large.

Whether an asset is impaired, we must first determine the current market value or realizable value of the asset before we can compare it.

Financial personnel are not omnipotent. Only by making up the knowledge of financial personnel, it is imperative for them to determine the current market value or realizable value of various assets.

Even professionals, it is not easy to ask them to determine the current market value or realizable value of an asset.

Three, business leaders and accountants lack ideological preparation for the change of accounting system, and the enterprise accounting system is not perfect.

3. does not have a deep understanding of the accounting requirements for some accounting subjects, and there are mistakes in accounting and reporting.

The main findings are as follows: (1) at the end of the year, the "profit and loss on disposal" subject has not been carried forward according to the requirements of the enterprise accounting system, and the balance has been retained.

As the balance sheet has cancelled the project, some enterprises have reflected it in other current assets projects.

(2) the "start-up fee" in the original system is accounted for as a first level subject, while the enterprise accounting system has added the "long term prepaid expenses" level one subject, and the "start-up fee" is used as the two level subject under the "long term prepaid expenses" subject.

Some enterprises' financial personnel are not clear about the nature and accounting contents of "long term prepaid expenses" subjects.

(3) the "welfare payable" should be used first and then pferred, and the scarlet letter will appear at ordinary times.

(4) pay less and pay more, resulting in "PAYABLE wages" kept bad.

(5) most of the adjustment of accounting errors in previous years are not standard enough, and less through the "profit and loss adjustment of previous years" subjects, but directly increase or decrease undistributed profits.

Individual enterprises still add the balance of the "prior year profit and loss adjustment" subjects to reflect on the profit statement.

4. ignores audit reconciliation.

Some enterprises do not pay any attention to the opinion raised by the CPA when they are audited (which has been agreed at the time of audit), resulting in second years' audit, and the number of early years provided by the enterprise is inconsistent with the number of year-end audit reports of the CPA.

The first reason is that enterprises are not concerned about whether the audit of annual reports should be adjusted for the purpose of obtaining audit reports.

The two is that some financial personnel do not understand the connotation of the practical operation of audit reconciliation, and do not adjust accounts or adjust accounts.

This situation will accumulate over a long period of time, which will lead to serious distortion of accounting information.

According to the basic thinking of China's accounting reform, Limited by Share Ltd, state owned enterprises and other large and medium-sized enterprises, because of the larger scale of enterprises, more standardized management, better basic work, reasonable quality and structure of financial personnel, and the implementation of "accounting system for enterprises" are conducive to improving the corporate image, enhancing the level of enterprises, and facilitating international exchanges to facilitate international integration.

The nature and business of financial and insurance enterprises, securities companies, financial companies and other enterprises are quite different from those of other enterprises. The implementation of the accounting system for financial enterprises can more accurately reflect the business nature and accounting information of these enterprises, and facilitate international comparison.

The rest of the enterprises, because of their small scale, relatively simple organizational structure, and lack of qualified personnel, have a certain gap compared with large and medium-sized enterprises in terms of basic accounting work, internal control and management.

Therefore, these enterprises implement the accounting system for small enterprises, which is conducive to simplifying their accounting and ensuring the authenticity of their accounting information.

However, at present, all foreign invested enterprises, regardless of their size, are required to implement the enterprise accounting system. In fact, they are somewhat impractical and are not conducive to the enterprises to provide real accounting information.

Foreign invested enterprises should adopt different accounting systems according to their size.

The author puts forward the following suggestions: 1. large and medium-sized enterprises in foreign investment enterprises should implement the enterprise accounting system.

As the enterprise accounting system is well conceived, designed scientifically and basically integrated with the international market, it is the enterprise accounting system advocated by the Ministry of finance.

There are many large and medium-sized enterprises in foreign invested enterprises, especially in some large cities and coastal developed areas. The joint ventures or independent enterprises established by the world's top 500 enterprises in China are relatively large in scale, bringing the advanced management concepts and business models of these well-known large enterprises, and gathering a large number of excellent talents.

The implementation of the enterprise accounting system by these enterprises is conducive to promoting the pace of Chinese mainland enterprises in accounting and international accounting, and also conducive to international exchanges.

2. small enterprises in foreign investment enterprises should implement the accounting system for small enterprises.

At the present stage, there are quite a few small enterprises in foreign-invested enterprises, compared with the standards of the four ministries and commissions of the Ministry of Finance and so on. According to the rough statistics of 310 foreign invested enterprises audited by the Institute, at least 192 belong to small enterprises, accounting for about 2/3 of the total number of foreign-invested enterprises.

These enterprises are small in scope of operation, low in management level, and weak in accounting basic work.

It can be said without exaggeration that the accounting basis of many enterprises has not yet reached the standard.

These enterprises fail to implement the "enterprise accounting system", and the control system inevitably has such a deficiency. As a result, accounting firms and certified accountants have increased the audit reports of non standard and unqualified opinions in the audit of annual financial reports.

Business administration departments and other departments do not understand the types of audit reports and fail to pass the annual inspection of enterprises, causing unnecessary trouble.

It is suggested that such enterprises should adopt the "small business accounting system" more favorably.