The Impact Of New Accounting Standards On Balance Sheet Analysis

The disclosure of the interim financial report in the first quarter, the impact of the new guidelines is beginning to show, and some hot spots forecast for the report data will also be tested.

The contents of the original short-term investment, the long term equity investment and the long-term debt investment that were originally calculated by cost method and have reliable fair value are listed in the paction financial assets, the "ready to sell financial assets" and the "holding to maturity investment" items respectively according to the management intention.

Under the current liabilities project, the "paction financial liabilities" project has been added.

Except for "holding to maturity investments" measured by amortized cost, the rest are measured at fair value, and changes in fair value may affect current profits and losses or capital reserves.

The new accounting standard divides long-term equity investment into 3 categories: (1) investment enterprises can invest in long-term equity investments controlled by the invested units; (2) the investment enterprises do not have common control or significant impact on the invested units, and do not have the quoted price in the active market, and the long-term equity investment that the fair value can not be reliably measured; (3) the investment enterprises have long term equity investment with common control or significant influence on the invested units.

For the above first, second types of long-term equity investments, the new accounting standards are stipulated in the cost accounting method. For the third types of long-term equity investments, the new accounting standards are stipulated by the equity method.

In the accounting process, the equity investment differential project was abolished, and there was no amortization problem, which would have an impact on net profit.

The investment real estate, which can be listed in inventory, fixed assets and intangible assets, can be listed separately in the balance sheet. This will affect the assets structure of enterprises, especially those with large investment real estate in inventory. After implementing the new guidelines, the company will reduce the current assets and reduce the current ratio.

When the enterprise implements the investment real estate guidelines for the first time, the retained earnings are adjusted by the difference between the fair value and the original book value. When the enterprises convert their own real estate into investment real estate, the difference between the fair value and the original book value is included in the owner's equity. The two adjustment methods will increase the owner's rights and interests of the enterprise.

The bigger changes of fixed assets are: fixed assets entry cost should consider the factors of estimated abandonment cost, the fixed assets cost that exceeds the normal credit condition and the fixed assets cost that is postponed to pay is determined on the basis of the present value of the purchase price, which will increase the value of fixed assets, increase depreciation, and reduce profits.

Intangible assets refer to identifiable intangible assets. If it involves the development of intangible assets, it may include the capitalization expenditure of the enterprise at the development stage (as long as the expenditure in the development stage meets the 4 criteria stipulated in the guidelines).

The accumulated amortization project has been added to reflect the value of intangible assets amortization separately.

Accounting treatment of R & D expenditure capitalization will surely promote enterprises to invest in research and development projects, especially for listed companies of scientific research, and relevant information will help to analyze the core competitiveness and long-term growth ability of enterprises.

The capitalization of some R & D expenditure can increase the assets of the enterprise, and the financial situation of the enterprise will also improve to a certain extent, such as reducing the ratio of assets and liabilities, improving business credit, and helping it expand.

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But in tax terms, the temporary increase in profits will lead to an increase in the recent income tax.

The contents include 8 aspects: wages, bonuses, allowances, subsidies, wages, salaries, all kinds of social insurance premiums, housing provident funds, trade union funds and staff education funds, non monetary benefits, dismissal compensation and other related remuneration related expenses. In addition to dismissal compensation, other employees' salaries are included in the assets, costs or current profits and losses according to the income objects.

This will generally reduce the gross profit margin and gross profit of each phase of the enterprise, and at the same time, it will also cause a certain degree of deferred effect on the profits and losses of each period of the enterprise, and will have a greater impact on the enterprises with longer production cycle.

There is no provision for welfare costs, but a real payment.

The method of balance sheet deferral is adopted, and the concept of temporary difference is introduced. The difference between the book value determined by accounting standards and the tax base stipulated by the tax law is recognized as deferred income tax assets or deferred income tax liabilities, which are separately shown in the table.

According to the annual reports disclosed, the income tax is the most widely benefited project. Many companies benefit from the deferred income tax system. The most prominent one is Sichuan Changhong, which has increased the stockholders' equity by an astonishing 22 640.61 yuan.

(mainly reflected in capital accumulation projects).

The factors that lead to the increase of stockholders' rights and interests in listed companies include: first, the financial assets that are measured and measured in fair value and whose changes are included in the profits and losses of the current period and the sale of financial assets increase the shareholders' rights and interests. This section mainly refers to the trading financial assets such as stocks, bonds and funds purchased by the listed companies from the stock exchange. Second, the deferred income tax assets resulting from the preparation of assets impairment allowance and so on lead to a net increase in shareholders' equity. Third, minority shareholders' rights and interests are included in the owners' rights and interests.

Previously minority shareholders were listed before owners' equity.

In this year's first annual report, the reconciliation of shareholders' interests disclosed in the 2006 annual report of Jiangnan high fiber shows that the company's shareholders' rights and interests increased by 1 761.75 yuan in January 1, 2007 according to the new accounting standards.

Among them, the company's financial assets calculated at fair value increased the net assets by 111 thousand yuan, accounting for income tax by the balance sheet liability method increased the retained earnings by 488 thousand and 500 yuan, and increased the shareholders' equity by 1 701.80 yuan after counting minority shareholders' rights and interests into shareholders' equity.

Reduction factors.

The implementation of the new guidelines result in the reduction of shareholders' equity in listed companies. There are two main factors: first, the reduction of shareholders' equity caused by the difference in long-term equity investment; second, the net interest of shareholders is reduced due to the confirmation of liabilities caused by employee's stock options and the dismissal of compensation.

Due to the application of the balance sheet, the prepaid and prepaid items have been cancelled, and the related contents are calculated by the cash basis.

This will reduce the difference between the income statement data and the cash flow table.