Accounting Skills For Small Businesses' Foreign Currency Business

When foreign currency business occurs in small businesses, the amount of foreign currency should be converted into

Standard currency account.

Unless otherwise specified, all accounts relating to foreign currency business shall be based on the exchange rate at which the business occurs or the business will take place at the beginning of the current period.

Reduction.

(1) foreign exchange pactions occur in small businesses, such as the purchase of foreign currencies,

Borrower: bank deposit * *

(the amount of foreign currency earned at the market rate at the beginning or the beginning of the month).

Financial expenses (by debit balance)

Loan: bank deposit (the amount of the standard currency paid by actual payment).

Financial expenses (by credit balance)

(2) foreign exchange pactions occur in small businesses, such as selling foreign currencies.

Borrower: bank deposit * * foreign currency account (by the exchange rate of foreign currency at the exchange rate).

Capital surplus - foreign currency capital conversion difference (by debit balance)

Loans: paid in capital (the amount of the standard currency converted to the exchange rate according to the contract).

Capital surplus - foreign currency capital conversion difference (by credit balance)

The contract does not specify the exchange rate:

Borrower: bank deposit - * foreign currency account (the amount of the standard currency converted to the exchange rate on the day of receipt of the capital contribution).

Loan: paid in capital

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And other related information is compiled on the basis of accounting information, and all accounting statements are the summary of accounting for each enterprise as the accounting entity. It reflects the enterprise's operating results and financial status from the perspective of the parent company itself or from the perspective of the subsidiary company, so that both sides have reflected the economic business occurring in the company's internal business, from the internal accounting statements of the economic and business companies, and the consolidated accounting statement is based on the enterprise group as the accounting entity, so that the economic operations of the companies within the group do not have to be reflected in the consolidated accounting statements. The repeated reflection part of the group's internal pactions in each company's accounting statements should be offset, otherwise, the number of items in the consolidated accounting statements will be inflated, so that the information reflected in the consolidated financial statements will be distorted. The consolidated financial statements are the accounting statements of the parent company and the subsidiary company incorporating the scope of the merger.

In order to prepare consolidated financial statements, a subsidiary should provide the following accounting information besides its own accounting statements to the parent company: (1) the accounting policies adopted by the subsidiary company are different from those of the parent company; (2) information about the business dealings with the parent company and other subsidiaries of the parent company, debt and debt, and investment; (3) the relevant information on the profit distribution of the subsidiary; and (4) detailed information on the changes in the owner's equity of the subsidiary company.

In order to prepare consolidated financial statements, the parent company must make use of the equity method to calculate the rights and interests capital investment to the subsidiary companies, and compile individual accounting statements, so as to provide basic data for compiling consolidated financial statements.

The parent company shall calculate and determine the amount owned by the subsidiary due to the profits and losses arising from the current profits and losses, and include it in the current investment profit or loss. At the same time, it will increase or decrease the long-term investment according to the amount, and adjust the book value of the long-term investment.

When the parent company deals with the accounts, it will borrow long-term investment accounts and credit investment income if it increases the long-term investment. In the case of reducing long-term investments, it will borrow the "investment income" account and credit the "long-term investment" account.

The parent company shall be treated as a long-term investment when the profit from the subsidiary is received.

When dealing with the accounts, we should borrow the account of "bank deposit" and credit the "long-term investment" account.

The parent company shall calculate and determine the amount owned by a subsidiary due to changes in the owner's equity caused by the difference between the income from the donation, the revaluation of the statutory assets and the conversion of foreign currency investment due to the profit and loss other than the current period. The book value of the long-term investment should be adjusted or the amount of capital reserve increased or reduced according to the amount determined or increased.

(1) for the change of owner's rights and interests caused by the factor company's donation and the legal value added to the assets, the parent company should reevaluate the value added according to the statutory assets accepted and confirmed, and borrow the account of "long-term investment" and credit the "capital surplus" account.

(2) for the change of owner's equity caused by the conversion of foreign currency investment by the factor company, when the balance of foreign currency conversion is the credit balance, the parent company should borrow the "long-term investment" account and credit the "capital surplus" account. When the foreign currency conversion difference is the debit balance, the parent company should borrow the "capital surplus" account and credit the "long-term investment" account.

To prepare consolidated financial statements, work papers should be compiled first.

There are three columns in the merger: the first column is the column of "mother and subsidiary's statement amount", which is listed by the parent company and the subsidiary company. The second column is "adjustment and offset" column, and the debtor and credit bar are divided into third columns.

When preparing consolidated financial statements, the consolidated profit and loss statement (or combined profit statement) and the consolidated profit distribution table should be first compiled, and the balance sheet should be consolidated.