Application Of Bank Acceptance Bill

Information Bulletin No. seventh of the CAS expert technical assistance group points out: "according to the" accounting standards for business enterprises - cash flow statement ", the bank acceptance bill is not a cash equivalent. The endorsement flow of bank acceptance bill can not be reflected as cash flow information. Is this consistent with the actual situation? I believe that this view is not objective and comprehensive, and leads to misleading easily.

First of all, accounting information is not clear, which is not conducive to the understanding and use of users of financial statements. In the actual financial work, in order to improve the efficiency of capital use and delay in payment, the bank acceptance bill has long been the way of settlement of goods and services. At present, some commercial and industrial enterprises have taken over the proportion of sales payment or purchase payment by bank acceptance bill. The proportion of capital accounts for construction projects and large equipment accounts for settlement by bank acceptance draft is also common. If the bank acceptance bill is excluded from the cash equivalents, the interim endorsement of the upstream and downstream businesses will not constitute a cash flow. In this way, the organic link between cash flow information and profit information may be seriously distorted. Compared to the income and expenditure amount of the profit statement, the amount of cash inflow and outflow has evaporated a large amount without any reason, and the structural information of cash flow may be deviated. [this article is transferred from: lunwen.1kejian.com]

Secondly, financial essence determines accounting reflection, not vice versa. In the current fund management activities, enterprises generally treat bank acceptance bills as bank deposits, and incorporate them into the scope of capital budgeting and capital management. The bank's acceptance of bills of exchange has nothing to do with other bank documents. For example, the enterprise's funds day (month) report includes the receipt and payment of bank acceptance. For example, the amount of money returned by the Sales Department of the sales department also includes the amount of the accepted bank acceptance.

Finally, the cash flow statement stipulates that cash equivalents refer to investments with short duration, strong liquidity, easy conversion to known amount of cash and little risk of change in value. According to this definition, cash equivalents first need to satisfy four elements at the same time, and then be restricted to "investment". The guideline provides the following explanation: "the term is short, usually within three months from the date of purchase." Cash equivalents It usually includes bonds investment within three months, etc. The enterprise shall determine the scope of the cash equivalents according to the specific circumstances, and shall not change them as soon as it is determined. " Contrast to the above Regulations And explain, we specifically analyze the characteristics of bank acceptance bill.

From the time limit, the bank acceptance bill must not exceed 6 months from the date of issue to the maturity date. Therefore, the "actual date of acquisition of the bank acceptance to maturity" and the "maturity within three months from the date of purchase" form an intersection, which may fall within 3 months, and may also fall from 4 to June. Theoretically, however, bank acceptance is acceptable. Money Order The function is not only due to collection, but also can be endorsed or discounted before maturity. It has good liquidity. Therefore, from the perspective of rational financial management, the nature of the bank acceptance bill is arbitrary.

It can be seen that bank acceptance bill basically has four elements. It is undeniable that a bank acceptance bill is a creditor's right guaranteed by a bank, which is generally not considered "investment". Nevertheless, in the supplementary interpretation of the guide, the words "general", "waiting" and "specific circumstances" fully reflect flexibility. At the same time, looking back at history, from the financial statement to the cash flow statement, from the working capital to the cash, the main line of evolution and change is liquidity. Therefore, the author thinks that the key to judge whether or not the cash equivalent is to satisfy four elements is whether investment or creditor's rights is secondary.