How To Reverse The Loss Of Enterprises?

from world According to the situation of various countries, there are mainly two forms of the loss of enterprises: one is the loss after the loss, the other is the loss back. The content of the two ways is different, the effect is also different. At present, China has implemented preferential policies after the loss of business operations.

1. The loss of the enterprise is transferred to another. two types form

Judging from the world's situation, enterprise There are two main types of losses: one is the loss, the other is the loss. The content of the two ways is different, the effect is also different.

1, loss after arrival

After the so-called loss, it means that the amount of loss that the company has suffered will be used to offset the taxable income in the following year, so as to achieve an income tax revenue. The time limit for China's arrival is 5 years, the United States is 15 years, Germany and Japan are 5 years, and the United Kingdom can be indefinitely arrived later.

From the accounting point of view, after the loss is made, the enterprise may get an income tax income in the year after the loss. However, because enterprises can make profits again after losing money, and whether the realized profits can fully compensate for losses, they generally cannot be determined beforehand. Therefore, the international accounting standards stipulate that the income tax revenue usually is not recognized in the current period of losses. However, if we are sure that the future business is bound to be profitable and the taxable income is sufficient to achieve the income tax benefits arising from carry over losses, we can confirm this gain in the current period of loss. Under such circumstances, the deferred income tax exemption should be debited according to the amount of loss that should be transferred later, and the "income tax gains" should be credited.

The advantages and disadvantages of losing money can be analyzed from two angles: enterprise and finance. For an enterprise, the loss can make the enterprise pay less or exempt from the income tax in the beginning of the profit year, so as to get an income tax income. For finance, it is equivalent to reducing one income or increasing expenditure in the future, but in the long run, by increasing the future financial resources of the enterprise and making it better develop, it will help the financial sector to get more tax revenue in the future.

2, loss back

The so-called "loss in return" refers to the loss that the company has used to offset the taxable income of the previous year and to apply for the return of the income tax paid. The United States and France have a 3 year return period, and the United Kingdom and Japan are 1 years. Although the number of years is different, the basic accounting treatment method is consistent, that is, the income tax income is recognized during the period of loss, and it is listed as an asset (short-term receivables) on the balance sheet, which is reflected in the profit and loss account as a decrease in operating loss.

The advantages and disadvantages of loss recovery can also be analyzed from two angles of enterprise and finance. The advantages of the loss back to the enterprise are obvious: first, under the policy of loss remission, the enterprises can apply for tax rebate to the finance if they lose money, so that they can get a sum of money quickly; two, the principle of loss and return is in line with the principle of fairness and rationality, because enterprises make a contribution to the state by paying taxes in the period of corporate profits, so the state should also make appropriate compensation in the difficult period of its operation. The drawback is that it may stimulate enterprises to get tax rebate as a goal to some extent, and weaken the power to improve production and operation.

For the financial sector, first of all, compared with the loss, the deficit can reflect the support of the state to enterprises, and better reflect the regulatory role of taxation. Secondly, if appropriate policies can be obtained for any type of industries and enterprises, it can play an important role in optimizing the industrial structure. Third, we can cooperate with the government's expansionary fiscal policy to achieve the role of promoting economic development. The drawback lies in the fact that a loss in return means that a fund will be raised immediately, which will increase the financial pressure. If the government is implementing the austerity policy, the loss will offset the effect of the policy, and even have the opposite effect; because the loss is refunded and the government's tax rebate is needed, the time limit for the return can not be too long, and its effect has certain limitations.

Two, China's current policy analysis of the loss and transfer of enterprises

At present, China has implemented preferential policies after the loss of business operations. According to the Provisional Regulations on enterprise income tax, the annual loss occurring by an enterprise can be compensated by the pre tax profit of the next tax year. In the next year, if the profit is not enough, it can be made up in 5 years.

Moreover, when the profits made by the company make up for the losses of the previous year, the accountant does not need to make any other accounting entries.

Our country has effectively supported the development of enterprises through the implementation of the policy of loss after arrival. However, there are still some problems in the overall analysis, mainly the implementation of a single policy of deficit after arrival, and no implementation of the policy of deficit return. From other countries' situation, the average time of loss generally exceeds five years, some even for more than ten years, and often accompanied by a policy of deficit return.

Three, suggestions for improving the system of loss and transfer of enterprises in China

1, selectively implement the policy of deficit return.

Due to the tax refund policy, it is necessary to consider all factors, especially the financial capacity of the state. Therefore, there is no policy on the return of losses in China. However, as a common practice in the world, loss recovery is an important measure for the state to support the development of enterprises. We can consider that we should first implement the policy of deficit return in some key industries that need state support, and gradually promote it when the conditions are ripe in the future. Taking into account factors such as industrial policies, development strategies and financial affordability of the state, it is possible to consider a loss recovery policy first in the industries with obvious cyclical and fluctuating characteristics in new and high technology industries and production and operation.

2, at present, it is a favorable opportunity to implement the policy of deficit return.

First of all, China has joined the world trade organization, and all kinds of transnational enterprises will enter China in large scale. Compared with foreign enterprises, China's enterprises are small in scale, low in profitability and poor in competitiveness. In order to promote the development and growth of domestic enterprises as soon as possible, we should learn from all the experiences that are conducive to rapid economic development in the world. As a preferential policy implemented by most countries, loss recovery is of great importance in promoting the development of enterprises. China should implement the policy of deficit return as soon as possible to promote the development and growth of domestic enterprises.

Secondly, at present, China is implementing active fiscal policy, the main content of active fiscal policy is to expand expenditure, and the two is proper tax reduction. The implementation of the policy of deficit return to the enterprises that are mainly supported by the state is precisely the content of the active fiscal policy, which deserves careful study and implementation.

Third, in order to narrow the gap with developed countries as soon as possible, we need to vigorously develop high-tech enterprises and enhance international competitiveness, so that China will have a place in high quality products. One of the characteristics of hi-tech enterprises is the instability of operation, which is greatly influenced by market fluctuation and needs the support of state finance. Losing back is one of the ways to support.