The Standards And Principles That Enterprises Must Follow In Dealing With Accounting Elements.

The criterion of accounting elements refers to the standards and principles that enterprises must follow in dealing with accounting elements.

They constitute the basis and basic elements of accounting.

The criterion of accounting elements focuses on the definition and classification of accounting elements, so as to guide the setting up of accounting accounts.

1. assets

Assets refer to the economic resources that the enterprises own or control, which can be measured in money and provide the future economic benefits for the enterprises.

It includes all kinds of property, creditor's rights and other rights.

In accounting, assets are classified according to the nature of liquidity. They are generally classified into current assets, long-term investments, fixed assets, intangible assets, long-term prepaid expenses and other assets.

(1) current assets

Current assets refer to assets that can be realised or consumed in a business cycle of one year or over a year, including cash and deposits, short-term investments, receivables and prepayments, inventories, etc.

Cash and bank deposits.

Including cash in cash, bank deposits and so on.

The accounting standards for enterprises stipulate that cash and deposits should be accounted for according to actual income and expenditure.

The book balance of cash must be in line with the number of inventories. The book balance of bank deposits should be checked regularly with bank statements, and the bank reconciliation should be compiled monthly.

2. Short term investment.

It refers to all kinds of negotiable securities that can be realised at any time and hold for no more than one year and other investments less than one year.

The accounting standards for enterprises stipulate that securities should be accounted for according to the actual cost at the time of acquisition, and the difference between the proceeds of the current securities and the proceeds from the pfer of the negotiable securities and the book cost shall be included in the profits and losses of the current period; short-term investments should be shown in the accounting statements in the book balance.

3. Receivables and prepayments.

It includes bills receivable, accounts receivable, other receivables, prepayment and prepaid expenses.

In accounting, business and non business receivables and prepayments should be separately accounted for. For business receivables and receivables and accounts receivable, it can be approved according to the state regulations, and the reserve for bad debts should be extracted as a deduction for accounts receivable, which should be listed in the accounting statements.

Receivables and prepayments should be accounted for according to the actual amount incurred.

All receivables and prepayments should be liquidated and charged in time, and should be checked with each other regularly.

The accounts receivable which have been confirmed to be unrecoverable and have already raised the reserve for bad debts shall be sold out of the reserve of bad debts; the bad debt reserve should be taken as a loss of bad debts and shall be included in the profits and losses of the current period.

The cost to be apportioned should be apportioned on time, and the balance of the non amortization should be shown separately in the accounting statements.

(4) inventory.

It refers to all kinds of assets stored in the course of production and operation for sale or consumption, including commodities, finished products, semi-finished products, products and all kinds of materials, fuels, packaging, low value and easily consumed products, etc.

All inventories should be accounted for at the actual cost of acquisition.

The planned cost or quota cost method should be used for daily accounting, and the cost difference should be carried forward on schedule, and the planned cost or the fixed cost should be adjusted to the actual cost.

When all inventories are issued, enterprises can choose the FIFO method, the weighted average method and the moving average method according to the actual situation.

All kinds of inventory should be listed in actual accounting cost in the accounting statement.

(2) long-term investment in long-term investments refers to investments that are not ready to be realised within one year, including stock investment, bond investment and other investments.

Stock investment and other investments should be calculated by cost method or equity method according to different situations.

Bond investment shall be accounted for according to the actual amount paid.

Where the actual payment is included in accrued interest, the interest shall be accounted for separately.

The difference between the actual payment price and the face value of a bond purchased at a premium or discount shall be amortized before the maturity of the bond.

The accrued interest during the duration of the bond investment and the difference between the principal and interest recovered from the sale and the book cost of the bonds and the outstanding interest accrued shall be included in the profits and losses of the current period.

Long term investments should be itemized in accounting statements.

Long term investments due within one year shall be reflected separately under the current assets.

(3) fixed assets

Fixed assets refer to assets that are used for more than one year, with unit value above the prescribed standard and used to maintain the original material form, including houses and buildings, machinery and equipment, pport equipment, tools and implements.

Fixed assets shall be accounted for according to the actual cost at the time of acquisition.

The interest and related costs of the fixed assets and the exchange difference of foreign currency loans before the fixed assets have not been delivered or used, but have not yet been processed for final accounts, shall be included in the value of the fixed assets: after that, the interest on loans and related fees and the exchange difference between foreign currency loans should be included in the profits and losses of the current period.

The fixed assets that are donated must be determined according to the market price of similar assets or the relevant credentials.

The expenses arising from the donation of fixed assets shall be included in the value of the fixed assets.

The fixed assets that are leased into finance should be accounted for according to their own fixed assets and explained in the notes to the accounting statements.

Depreciation of fixed assets should be calculated based on the original value of fixed assets, estimated net salvage value, estimated useful life or estimated workload. The average age method or workload (or output) method is used to calculate the depreciation of fixed assets. If the relevant provisions are met, accelerated depreciation method can also be used.

The original value, accumulated depreciation and net value of the fixed assets should be listed separately in the accounting statements.

The actual expenditures arising from the purchase and sale of fixed assets or the renewal and pformation of fixed assets shall be separately shown in the accounting statements.

Fixed assets should be checked regularly.

The net loss of fixed assets, inventory losses and net losses arising from scrapping shall be included in the profits and losses of the current period.

(4) intangible assets

Intangible assets refer to assets that are used for a long time without physical objects, including patent rights, non patented technology, trademark rights, copyright, land use rights, goodwill, etc.

Intangible assets purchased should be accounted for according to actual costs. Intangible assets received for investment shall be accounted for according to the valuation or the contract price stipulated in the contract; intangible assets developed in white line shall be accounted for according to the actual expenses occurring in the development process.

All kinds of intangible assets should be amortized in stages in the period of benefit, and the unamortized balance should be shown in the accounting statements.

(5) long term prepaid expenses

It means that the expenses that the enterprise has expended, but the amortization period is not more than one year (excluding a year), can not be credited to the profits and losses of the current year. The expenses that should be amortized in the following years, including start-up expenses, fixed assets improvement, and fixed assets repair expenses.

The expenses actually occurred in the preparation period of an enterprise shall be accounted for as start-up expenses, except those that should be included in the value of the relevant property and materials.

The establishment expenses shall be amortized in stages within a certain period after the enterprise starts production and operation.

The improvement expenses for renting fixed assets shall be amortized averagely during the lease term.

All kinds of unamortized balances should be listed in the accounting statements.

(6) other assets

Other assets refer to assets other than those listed above.

It should be itemized in the accounting statement.

Liabilities refer to debts that can be measured in monetary terms and can be paid by assets or services.

Liabilities are classified into current liabilities and long-term liabilities according to their mobile nature.

(1) current liabilities

Current liabilities refer to debts that will be repaid within a business cycle of one year or more over a year, including short-term loans, notes payable, accounts payable, advance payments, payable wages, payable taxes, payable profits, other payable, withholding costs, etc.

All current liabilities should be accounted for according to the actual amount.

Liabilities have occurred and the amount is expected to be determined. It should be reasonably predicted and adjusted after the actual amount is determined.

The balance of current liabilities should be itemized in the accounting statements.

(2) long-term liabilities

Long term liabilities refer to debts that are payable over a period of one year or more than a year's business cycle, including long-term loans, bonds payable and long-term payables.

Long term loans include borrowing from financial institutions and borrowing from other units.

Long term loans should be divided into account according to actual amount.

When issuing bonds, it shall be accounted for according to the face value of the bonds.

When a bond is issued at a premium or discount, the difference between the paid price and the face value shall be accounted for separately, and the interest shall be reduced or increased in stages before the maturity of the bonds.

Long term payables include the payment of imported equipment, accounts payable for fixed assets such as finance and leasing.

Long term accounts payable should be accounted for at the actual amount.

Long term liabilities should be shown in the accounting statements according to long-term loans, bonds payable and long-term payables.

Long term liabilities which are due to be repaid within one year shall be reflected separately in the current liabilities.

The owner's equity is the ownership of the enterprise's net assets by the investors, including the capital invested by the investors, the capital accumulation fund, the surplus reserve fund and the undistributed profit.

Investment capital is the property and material that investors actually invest in business activities.

The invested capital should be accounted for according to the actual investment amount.

The issue of shares by a joint stock enterprise shall be accounted for as capital stock according to the face value of the shares.

Special appropriations allocated by the state to enterprises shall be accounted for as state investment unless otherwise stipulated.

Capital reserve includes equity premium, revaluation of statutory property, and value of donated assets.

Surplus provident fund refers to the provident fund extracted from profits in accordance with relevant regulations of the state.

Surplus provident fund should be accounted for according to the actual number of withdrawal.

The undistributed profit is the profit or the profit to be allocated to the enterprise after the year.

The above items should be listed in the accounting statements.

If the loss is not made up, it should be reflected in the reduction of owner's equity.

4. income

Income is the business revenue of an enterprise in selling goods or providing services.

Including basic business income and other business income.

For enterprise income realization time, the enterprise accounting standard stipulates that enterprises should generally confirm the business income by issuing goods, labor services have been provided, and at the same time, the price has been recovered or obtained the certificate of obtaining the price.

In the long term project (including labor service) contract, the general revenue shall be reasonably recognized according to the completion schedule or the completion of the contract law.

Sales returns, sales allowances and sales discounts should be accounted for as deductions for business income.

The business income of an enterprise should be listed separately according to basic business income and other business income.

At the same time, several basic businesses should be listed separately.

Cost refers to the expenses of enterprises in the course of production and operation.

It is divided into cost charged and cost directly charged to business profits and losses.

(1) general rules for cost accounting

Enterprises should calculate the cost and cost according to the actual amount incurred.

By adopting the method of fixed cost or planned cost, the cost difference should be calculated reasonably, and the actual cost should be adjusted at the end of the month when compiling accounting statement.

The cost for this period shall be fixed according to certain standards.

Allocation is included in the current and subsequent periods.

This period has not yet been paid, but the cost should be included in the current period.

(2) cost and product cost included in cost.

The cost included in the cost refers to the direct labor, direct materials, commodity prices and other direct costs directly incurred for the production of goods and services, as well as the indirect costs allocated by enterprises for the production of goods and services.

Enterprises can determine the cost calculation method according to the characteristics of production and operation, the type of production and operation and the requirements of cost management.

But once it is determined, it is not allowed to change at will.

Enterprises with products as the object of cost accounting should strictly draw the line between the current cost and the next cost, draw a clear line between the products, the semi manufactured products and the cost products, and draw the cost boundaries between different products.

(3) expenses directly charged to business profits and losses

The cost of directly calculating business profits and losses is called the period cost, including purchase cost, sales cost, management cost and financial cost.

The operating expenses are not included in the cost, and are directly listed as current profits and losses.

Enterprises shall correctly and promptly carry forward the cost and business expenses of selling goods and providing services, and shall be included in the profits and losses of the current period.

6. profit

Profits are the operating results of a company in a certain period, including operating profit, net investment income and net operating income and expenditure.

The operating profit is the balance after the business income minus the operating cost, the period cost and the various turnover taxes and the additional taxes and fees.

Net investment income is the balance after the investment income of the enterprise is deducted from the investment loss.

The net balance of operating expenses refers to the balance of all kinds of off business revenue that is not directly related to the production and operation of enterprises.

Pre tax profit refers to the balance of enterprises deducting the total profits from the total profits which can be deducted according to the state regulations, and enterprises should pay income tax according to pre tax profits.

The profit after deduction of tax is the after tax profit of the year.

The distributive profit of an enterprise is defined as the profit after tax plus the undistributed profit of the previous year, minus the balance after the previous year's loss is made up according to the regulations.

If a company loses money, it should make up for it according to the procedures stipulated by the state.

The composition of profits and the items of profit distribution should be listed in the accounting statements.

Where there is only a profit distribution plan and no final decision is made, the distribution plan shall be specified in the notes to the accounting statements.

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