Deferred expenses

Economic concept

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Prepaid expenses refer to various expenses that have been paid but should be borne by the current and future periods, such as Amortization of low value consumables . Property insurance premiums with large one-time expenditure Sewage charges 、 Technology transfer fee 、 Advertising expenses 、 fixed assets Regular repair cost , Prepaid Lease in fixed assets Rent, etc. Enterprise unit Occurred during the preparation period Organization expenses , and on Production and operation All expenses incurred during the period with an amortization period of more than one year shall be treated as“ Long term deferred expenses ”。 As Current assets One, which indicates that it has been paid but cannot be used as Current expenses Expenses of. According to our country accounting system ， Low value consumables It can also be included in deferred expenses. The conceptual basis of prepaid expenses is Accrual basis , also Proportioning principle Requirements.

Chinese name: Deferred expenses
Foreign name: prepaid expenses
Discipline: financial accounting

Type: Finance
Definition: Expenses borne
Abolition criteria: China's New Accounting Standards

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Long term amortization

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Long term deferred expenses It means that the enterprise has incurred/expended in the current period, which should be amortized over a period of more than one year Product cost or Period expenses Expenses of. Mainly including organization costs fixed assets Overhaul expenditure and Issue of shares Fees, etc. Payable in the current period Loan interest , rent, etc. cannot be treated as long-term deferred expenses

Expense account

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1、 This account is used to calculate various expenses that have been paid by small enterprises but have an amortization period of more than one year (excluding one year).

II Organization expenses : Expenses incurred during the preparation period of the enterprise, including personnel salaries Office expenses , training fees Travel expenses Printing fee, registration fee and not included fixed assets Valuable Borrowing costs Etc., this account should be debited when it occurs - related Detailed Account , credit bank deposits; Start at Production and operation Transferred in in the current month of Current profit and loss , Debit“ Administrative expenses ”Account, credit this account. The start-up expenses shall be amortized at one time on the date when the enterprise starts production and operation.

3、 Occurred in small enterprises Other long-term deferred expenses , debit this account and credit related accounts. Debit at amortization“ Manufacturing expenses ”, "administrative expenses" and other accounts, and credit this account.

4、 The undergraduate project should be set according to the type of expenses Sub ledger , proceed Detailed accounting 。

5、 End of period of this subject Debit balance , reflecting the amortized value of various long-term unamortized expenses that have not been amortized by small enterprises.

Amortization of payments

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Such expenses, although incurred in the current period, still play a role in subsequent periods, and should not be fully recorded in the current period Production cost 、 Commodity circulation fee , which should be apportioned by subsequent periods to correctly calculate the production costs or commodity circulation costs of each period. In order to reflect the increase or decrease of deferred expenses, the "deferred expenses" account should be set.

When the expense is paid, it is recorded in the Debit ；

When expenses are amortized, they are credited to the account. The debit balance represents the amount of expenses to be amortized Balance Sheet Listed in current assets 。

Foreign economic cooperation enterprises Accounting and setting up in the "prepaid expenses" account Temporary facilities , In use Revolving materials , In use Low value consumables Of actual cost , as well as the installation, disassembly and Auxiliary facilities cost 。

Collection and distribution

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Carried out through the "prepaid expenses" account

1. When various prepaid expenses are incurred (paid), they shall be recorded into the Debit , recorded at the same time“ bank deposit ”、“ Low value consumables ”, "Packaging"“ Taxes payable ”Credit of the corresponding account;

2 Amortized expenses are generally not specially designed Cost Item , amortized according to the benefit period, recorded in the credit of this account, and recorded in "manufacturing expenses"“ Auxiliary production cost ”、“ Product sales expenses ”、“ Administrative expenses ”Debit of other accounts;

3 "Deferred expenses" are set according to the type of expenses Subsidiary ledger conduct Detailed accounting , respectively reflect and supervise the occurrence and amortization of various prepaid expenses.

Amortization within one year after cancellation of this account is directly included Period expenses Or“ Manufacturing expenses ”, if more than one year“ Long term deferred expenses ”

Entry

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At the time of payment

Debit: prepaid expenses - XX

Credit: bank deposit (cash)

Amortization

Debit: management expenses（ Operating expenses ）－ telephone rate

Credit: prepaid expenses - XX

Under the new guidelines

As for what expenses need to be amortized, it depends on whether they are incurred (paid) in the current period, but should be shared by the current period and subsequent periods, and the amortization period is less than one year, such as the amortization of low value consumables Fixed asset repair Fees, etc. The master principle is whether this expense can enter the cost at one time in the current period or whether the benefit period is relatively long.

"Deferred expenses" and“ Accrued expenses ”Has always been embodied Accrual basis principle The most important account. Issued by the Ministry of Finance in 2000《 Enterprise accounting system 》(hereinafter referred to as "the original system") Ending balance They are specifically listed in the balance sheet. Appendix to "Application Guide of New Standards"“ Account The accounts of "prepaid expenses" and "accrued expenses" have been deleted from "and" main accounting treatment ", and Enterprise assets The balance sheet also cancelled these two items correspondingly, but did not make any explanation on the accounting treatment and statement presentation of businesses related to deferred and accrued as stipulated in the original system, nor did any place explicitly indicate that deferred and accrued are allowed.

In this way, many enterprises implementing the new standards accounting personnel The accounting treatment of prepaid expenses and accrued expenses has caused confusion. In the absence of explanations from the relevant departments and different opinions from the academic community, many enterprises try to deal with it by themselves Accounting treatment method It can be said that there are many different kinds.

For example, some enterprises still keep the accounts of "prepaid expenses" and "accrued expenses", which are reflected in the balance sheet of the new standard at the end of the period“ Other current assets ”And“ Other current liabilities ”Project; Some enterprises have passed“ Prepayments ”、“ Other receivables ”And other accounts instead of "prepaid expenses", which are reflected in the balance sheet of the new standard at the end of the period“ Prepayments ”Or "other receivables"; Some passed“ Advances from customers ”、“ Other payables ”And other accounts instead of the "accrued expenses" account, which is reflected in the balance sheet of the new standard at the end of the period“ Advance receipts ”Or "other payables".

But do these methods meet the requirements of the new guidelines? How should we deal with the "two fees"? Here, based on our own understanding, we will analyze the reasons for canceling the "prepaid expenses" and "accrued expenses" items in the new standards and the accounting treatment of related businesses.

Reason for cancellation

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Debt view

The new standards strengthen the concept of assets and liabilities and weaken it Income and expense view 。 The balance sheet view is more consistent with the usefulness of information, and will exclude items that can no longer bring future economic benefits to the enterprise, that is, items that do not meet the definition of assets from the balance sheet. For example, "prepaid expenses" are essentially expenses, which belong to valueless assets and are consumed once incurred by the enterprise“ Sunk cost ”It has no use value and no liquidity. If an enterprise goes bankrupt, it is impossible to use it to repay its debts. If it is classified as an asset, it will increase the number of enterprises Total assets , exaggerating the asset liability ratio of the enterprise, seriously affecting the enterprise financial index It is not conducive for investors to make correct judgments on the production, operation and financial status of enterprises.

Some of the above enterprises still retain the "prepaid expenses" and "accrued expenses" titles, or adopt "prepayments", "other receivables"“ Advances from customers ”、“ Other payables ”And other alternative accounts are essentially the same, and do not follow Asset liability view , which does not meet the requirements of the new standard.

Accounting Elements

From the definition of assets in the new standards, assets refer to resources formed by past transactions or events of enterprises, owned or controlled by enterprises, and expected to bring economic benefits to enterprises.

Prepaid expenses are expenses that have occurred and should be borne by the enterprise in the current period and subsequent periods. They are directly reflected in the outflow of economic benefits from the enterprise. The reduction of enterprise assets and owner's equity is not expected to bring any economic benefits to the enterprise, so they cannot be classified as assets. According to the new standards, liabilities refer to the past transactions or events of an enterprise that are expected to lead to the outflow of economic benefits from the enterprise Current obligations 。

Accrued expenses are accrued from Cost Although these expenses are expected to lead to the outflow of economic benefits from the enterprise, they are not the past expenses of the enterprise Transactions or events The current obligations formed are also inconsistent with the definition of liabilities in the new standards.

Look again at the definition of expense in the new standard. Expense refers to the total outflow of economic benefits that occurs in the daily activities of an enterprise, will lead to the reduction of owner's equity, and has nothing to do with the distribution of profits to owners. This definition can well contain the definition of "two fees", because each "two fees" sub item is set when economic benefits are likely to flow out of the enterprise, and the outflow amount of economic benefits of each project can be reliably measured. Therefore, the "two fees" should belong to the expense element in the new standard rather than the asset or liability element.

Impact on accrual basis

The new standards upgrade the accrual basis to the accounting basis, but this does not mean that the "two fees" as the main account of the accrual basis cannot be canceled. Although in terms of truly reflecting the financial situation and operating results of the enterprise, the accrual basis is relatively Cash basis It has great advantages, but because of its inherent defects, it often brings great harm.

For example, accrual and Quality requirements of accounting information Of Substance over form 、 Cautiousness , relevance and importance, which will make enterprises list assets and increase assets falsely Current profit 。 In recent years, many accounting methods, such as the setting of "two fees", have had a negative impact on the accurate disclosure of assets and liabilities. With the outbreak of Enron and other scandals, they have been criticized. There is a high demand for improving the accrual system Cash basis (e.g. cash flow basis) also challenges the accrual basis. Previously, some scholars proposed that the "two fees" subject could not be set to measure the importance of accounting information quality requirements, so as to ensure that the assets and liabilities of enterprises can be more reasonably disclosed. This view is just in line with the requirements of the new standards.

Practical issues

In practice, some enterprises deliberately play an account game when accounting for the "two fees" business, and use the "two fees" as a "reservoir" or "transformer" to adjust profits, which becomes enterprise whitewash Accounting statements The usual means of.

To sum up, the use of "two fees" to make false accounts mainly involves randomly changing the amortization, accrual period and amortization of "two fees", and the amount of accrual: "hanging without amortization" to cover up losses; Include the content that does not belong to "two fees" into "two fees"; The "two fees" are not included in the "two fees": the "two fees" are not correctly amortized and withdrawn; the "two fees" are not accurately disclosed in the accounting statements.

In addition, the accrued expenses also increased Tax adjustment Workload. Therefore, the new standard cancels "prepaid expenses" and "accrued expenses" Transitional Account , which limits the operating space for enterprises to adjust the profits of each period, and directly Included in current profit and loss 。 This not only simplifies accounting, but also makes it easier to understand, and also reduces the workload of auditors for auditing such businesses.

The prepaid expenses stipulated in the original system refer to the expenses that have been paid by the enterprise but should be borne by the current and subsequent periods respectively, and the amortization period is within one year (including one year), such as Low value consumables And the amortization of leased and lent packages Prepaid premium 、 Operating lease Prepaid rent, prepaid newspaper and magazine fees, seasonal production enterprises' expenses during the shutdown period, stamp duty that needs to be apportioned due to a large amount of payment at a time, and fixed asset repair costs.

（1） Amortization of low value consumables and rental and lending packaging materials

Low value consumables and packaging materials in the original system are classified into“ Revolving materials ”Account accounting. The application guide of the new standard points out that reusable materials refer to materials that can be used repeatedly and gradually transferred by enterprises but still remain in their original physical form and are not recognized as fixed assets Materials, such as packaging and Low value consumables , should adopt One-off write off method perhaps 50% amortization method Amortization; The steel formwork, wood formwork, scaffolding and other turnover materials of enterprises (construction contractors) can be written off once, amortized at 50% or Subordinate amortization method Amortization. The "reusable materials" account can be divided into "in stock", "in use" and "amortization" according to its type Detailed accounting 。

use One time amortization method , according to the book value , debit "administrative expenses", "production costs"“ selling expenses ”, "engineering construction" and other subjects, credit“ Revolving materials ”Account. When reusable materials are scrapped, they should be debited to "raw materials" and other subjects, and credited to "management expenses", "production costs", "sales expenses", "engineering construction" and other subjects according to the scrap value of the scrapped reusable materials.

If other amortization methods are adopted, the account of "revolving materials in use" shall be debited and the account of "revolving materials in stock" shall be credited according to the book value at the time of collection; At the time of amortization, according to the amount to be amortized, debit the "management expenses", "production costs", "sales expenses", "engineering construction" and other subjects, and credit the "revolving materials - amortization" subject. Reusable materials shall be scrapped Supplementary provision Amortization amount shall be debited to "management expenses", "production costs", "sales expenses", "engineering construction" and other subjects, and credited to "revolving materials - amortization" subjects. At the same time, according to scrapping Revolving materials The value of the residual materials, debiting "raw materials" and other subjects, and crediting "administrative expenses", "production costs", "sales expenses", "engineering construction" and other subjects; And write off all the accrued amortization amount, debit the "reusable materials - amortization" account, and credit the "reusable materials - in use" account.

（2） Prepaid insurance premium, prepaid rent of operating lease, prepaid newspaper and magazine fees

For the treatment of prepaid insurance premium, prepaid rent of operating lease, prepaid newspaper and magazine fees, the prepaid amount shall be included in the relevant costs or Profit and loss account 。 Those incurred by the administrative department of the enterprise to organize and manage the production and operation activities of the enterprise shall be included in the administrative expenses; Those incurred by the workshop (department) of the enterprise for the production of products or the provision of labor services are included in the manufacturing expenses; Those incurred in the process of selling goods and providing labor services shall be included in the sales expenses. When prepaying the above funds, debit the "management expenses", "manufacturing expenses", "sales expenses" and other subjects, and credit the "bank deposit" and other subjects.

（3） Expenses of seasonal production enterprises during downtime

According to the application guide of the new standard, the seasonal Suspension loss , debit the "manufacturing expenses" account, credit the "raw materials"“ Payroll payable ”, "bank deposit", etc.

（4） Large amount to be paid at one time and apportioned

For the treatment of stamp tax that needs to be apportioned with a large amount paid at one time, the application guide of the new standard stipulates that enterprises should calculate and determine the amount of stamp tax payable according to the provisions Mineral resources compensation , property tax, vehicle and vessel use tax, land use tax, stamp tax, debit the "management expenses" account, credit“ Taxes payable ”Account.

（5） Fixed asset repair cost

The new code stipulates that fixed assets Relevant subsequent expenses that meet the conditions for recognition of fixed assets stipulated in the Standards shall be included in the cost of fixed assets, and those that do not meet the conditions for recognition of fixed assets shall be included in the cost of fixed assets when incurred Current profit and loss 。 The daily maintenance expenditure of fixed assets is only to ensure that the fixed assets are in normal working condition. Generally, it does not meet the recognition conditions of fixed assets, and should be included in the management expense or sales expense when it occurs. It should not be handled in the way of accrual or amortization. According to the application guide of the new standard, subsequent expenditures such as fixed asset repair costs incurred by production workshops (departments) and administrative departments of enterprises, if they do not meet the capitalization conditions, should be directly included in the management costs. Subsequent expenses such as fixed asset repair expenses incurred by the enterprise in connection with the special sales organization are directly included in the sales expenses.

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The accrued expenses stipulated in the original system refer to the expenses that the enterprise has withdrawn in advance from the cost according to the regulations but has not yet paid, such as loan interest, accrued rent, insurance premium and fixed assets Repair cost, etc.

Loan interest

The application guide of the new standard stipulates that“ Interest payable ”Account, accounting for the interest payable by the enterprise according to the contract, including deposit taking, interest payment by installments and principal repayment at maturity Long term borrowings 、 bonds issued by an enterprise Interest payable. Balance sheet date , should press Amortized cost and Effective interest rate Calculated interest expenses , Debit“ Interest expense ”"Construction in progress"“ Financial expenses ”、“ R&D expenditure ”Etc., calculated and determined according to the contract interest rate Unpaid interest payable , credit the "interest payable" account, and debit or credit the "long-term loan" according to its difference—— Interest adjustment ”、“ Deposit taking ——Interest Adjustment. When the interest is actually paid, debit the "interest payable" account and credit the "bank deposit" account.

Accrual scheme

According to the amount of expenses to be amortized fixed assets From the analysis of repair costs, it can be seen that the new standard and its application guide will no longer accrue the repair costs of fixed assets, but will deal with them respectively according to whether the expenditure can be capitalized when actually incurred. Repair costs that cannot be capitalized are directly included Current expenses , which can be capitalized and included in fixed assets book value 。 The rent and insurance premium that should be borne in the current period may not be accrued, but will be recorded separately according to the amount paid when the rent and insurance premium are actually paid Related costs or Profit and loss account 。

Contrastive withholding

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Deferred expenses and Accrued expenses The concept and characteristics of "prepaid expenses" refer to various expenses that have been paid by the enterprise but should be borne by the current and subsequent periods respectively, and the amortization period is within one year (including one year), such as Low value consumables And rental Lending packaging Amortization, prepaid property insurance premium, prepaid operating lease fixed assets Rent, prepaid newspaper subscription fees, prepaid fixed asset repair costs, purchase of stamp duty tickets and pay in a lump sum Taxes with large amount of tax and need to be amortized monthly.

The characteristics of deferred expenses are that they are paid first and benefit and amortization later.

Accrued expenses refer to the amount that an enterprise accrues from Cost The expenses that have been disbursed in advance but have not been actually paid, such as Bank borrowings Of interest expenses , accrued fixed asset repair costs, rents and insurance premiums, etc.

The characteristics of accrued expenses are that they benefit, accrue first, and pay later.

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(I) Account settings Has the same purpose: both belong to Inter-period Allocation Accounts , the purpose of setting such accounts is to Accrual basis principle , strictly divide the benefit period of expenses, and correctly calculate each Accounting period In other words, "who benefits, who bears the expenses".

（2） The purpose and structure of the accounts are the same: they are used to calculate and supervise the expenses that should be shared by several accounting periods, and allocate these expenses to the accounts of each accounting period. Debit Actual expenditure of registration fees or Amount incurred , the amount of expense allocation that should be borne by each accounting period for credit registration. In practice, for accounting companies that do not occur frequently, two accounts can be combined into one, and one account can be set“ Prepaid and accrued expenses ”Account to simplify accounting procedures. The balance of the "prepaid and accrued expenses" account should list the difference between prepaid expenses and accrued expenses, that is, the difference between the ending prepaid expenses and the accrued expenses is listed as the debit balance, while the difference between the ending prepaid expenses and the accrued expenses is listed as Credit balance 。 this Account balance Listed in the balance sheet.

（3） Both have liquidity: both have a benefit period of more than 2 months and less than 1 year, so both have liquidity, and the prepaid expenses are current assets , accrued expenses are current liabilities ； Under certain conditions, accrued expenses can be converted into prepaid expenses.

(IV) Sub ledger The settings of are the same: both of them set sub ledgers by expense type for accounting of sub classifications.

（5） The auditor has the same audit objective for both: to review whether the prepaid expenses and accrued expenses are recorded in the current cost according to the accrual basis principle, and whether there is any adjustment of profits. Because in practice, these two subjects are often used by enterprises to regulate production Operating profit Of“ Reservoir ”, especially the implementation of“ payment by results ”Enterprises and profit contracting enterprises, achieve the goal of contracting and make more provision by means of adjustment Benefit wage The purpose of.

difference

（1） The nature of accounts is different: among accounts classified by economic content, "prepaid expenses" belong to Asset account 。 Because it is paid first and then apportioned, it occupies the funds of the enterprise. This account Debit It records the increase amount of various assets of the enterprise, the decrease amount of credit records, and the balance generally appears in the debit, indicating the amount of assets actually owned by the enterprise at a certain time point at the end of the period. "Accrued expenses" belong to Liability account 。 Because it is withdrawn in advance, the expenses that should be paid but have not been paid become liabilities of the enterprise. The credit of this account records the increase of liabilities, the debit records the decrease, and the balance generally appears in the credit, reflecting the actual amount of the debt undertaken by the enterprise at a certain point at the end of the period.

（2） The time of occurrence of the two kinds of expenses is inconsistent with the time of recording the benefit period: the prepaid expenses are incurred or paid first, and the amortized benefit period is later: Actual number Payment by average Sharing in the future benefit period; Accrued expenses are included in the benefit period first and paid later, that is, accrued in the benefit period according to the average amount and paid later according to the actual amount.

（3） Filling Accounting statements The treatment principles of are different. Prepaid expenses are amortized according to the facts after expenses are incurred. The specific distribution standard and amount are known in advance. There is no credit balance in practice, and no adjustment is required when filling in the accounting statements; Accrued expenses need to estimate the amortization standard of the expenses to be incurred in advance, and the specific amount or standard is not known in advance. Therefore, in practice, there are often more or less withdrawals, which is prone to debit balance. At this time, it is generally not necessary to Accounting Treatment , but when filling in the accounting statements The The entry of "deferred expenses" is treated as deferred expenses, which is called "account table discrepancy" in practice.

Accounting example

For example 1, suppose an industrial enterprise prepays 12600 yuan of insurance premium for the fourth quarter through the bank in October. Including 6900 yuan for basic production workshop, 1800 yuan for auxiliary production workshop, 2700 yuan for enterprise administration department and 1200 yuan for special sales organization.

At the time of payment Accounting entry For: Debit: prepaid expenses - prepaid insurance premium 12600

Credit: bank deposit 12600

In October, the enterprise shall prepare the statement of deferred expenses distribution (omitted), and then prepare the following accounting entries according to the statement of deferred expenses distribution:

Debit: manufacturing expenses insurance premium 2900

Administrative expenses - insurance 900

Operating expenses - insurance 400

Credit: prepaid expenses - prepaid insurance premium 4200

The enterprise can make the same accounting entries in November and December as in October.

Example 2. Assume that Overhaul cost of fixed assets , annual Planned repair Cost points monthly average Withholding The method of balancing the accrued repair cost with the actual repair cost at the end of the year. The annual planned repair cost of the workshop of the enterprise is 26400 yuan, with an average monthly provision of 2200 yuan. The actual repair cost paid by the workshop was 13000 yuan in April and 14000 yuan in August. The cost of repairs is paid by cheque.

The enterprise prepares the statement of allocation of accrued expenses (omitted) according to the annual plan. The accounting entries are as follows:

From January to March, when the repair cost is accrued at the end of each month:

Debit: manufacturing expenses—— repair cost two thousand and two hundred

Credit: accrued expenses - accrued repair expenses 2200

When paying the repair cost in April:

Debit: accrued expenses - accrued repair expenses 13000

Credit: bank deposit 13000

When the repair cost is accrued at the end of April:

Debit: Manufacturing expenses - repair cost 2200

Credit: accrued expenses - accrued repair expenses 2200

At this time, the book of accrued expenses at the end of April is the debit balance of 4200 yuan

From May to July, when the repair cost is accrued at the end of each month:

Debit: Manufacturing expenses - repair cost 2200

Credit: accrued expenses - accrued repair expenses 2200

At this time, the book of accrued expenses at the end of July is the credit balance=2200 * 3-4200=2400 (yuan) (including July)

When paying the repair cost in August:

Debit: accrued expenses - accrued repair expenses 14000

Credit: bank deposit 14000

At this time, the accrual expense account Debit Amount incurred=13000+14000=27000 yuan

The actual accrual amount=2200 × 7=15400 yuan

Therefore, the amount should also be accrued=27000 － 15400=11600 yuan

That is to say, the monthly repair cost within 5 months from August to December=11600 ÷ 5=2320 (yuan)

From August to December, when the monthly repair cost is accrued:

Debit: Manufacturing expenses - repair expenses 2320

Credit: accrued expenses - accrued repair expenses 2320

At this time, there is no balance in the book of accrued expenses at the end of December.

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Prepaid expenses refer to various expenses that have been incurred by the enterprise but should be borne in the current and subsequent periods, and the amortization period is within one year (including one year), including prepaid insurance premiums, prepaid rent of operating leases Seasonal production enterprises Expenses during the shutdown period and other expenses that should be borne by the current period and subsequent periods other expenses 。

Accrued expenses

Accrued expenses refer to the expenses that the enterprise has withdrawn in advance from the cost expenses according to the regulations but has not yet paid, such as the rent, insurance premium, short-term borrowing interest, etc. that the enterprise has withdrawn.

Assets and liabilities that do not meet the requirements of the balance sheet and its recognition conditions cannot be reflected in the balance sheet. "Deferred expenses" and "accrued expenses" do not meet the definition of assets and liabilities, so "deferred expenses" and "accrued expenses" cannot be reflected in the balance sheet. The above two accounts are actually settlement accounts. In 2007 New accounting standards Cancel the use of "prepaid expenses" and "accrued expenses".

The original "prepaid expenses" can be transferred through "prepayment" and“ Other receivables ”Account accounting, the original "accrued expenses" can be calculated through "interest payable"“ Other payables ”Etc. The accrual of short-term borrowing interest of the original enterprise is accounted by the "interest payable" subject in the new standard.

The balance of "prepaid expenses" on the first execution date can be included in the first execution date Current profit and loss Or transfer in Prepayments Account processing; The balance of "accrued expenses" on the first implementation date, if it is consistent with the liabilities or Estimated liabilities , then transfer to the corresponding Payables Or estimated liability account. If it does not meet the definition of liability or estimated liability, it can only be written back or early error correction Principle handling.

Tax expenses

except Accrued expenses In addition, the enterprise also needs to accrue a part of the expenses for daily processing. Except as required by tax law Bad debt reserves Accrued other than gold reserve as Inventory falling price reserves 、 Fixed assets depreciation reserves , short-term and long-term investment depreciation reserves, construction in progress Provision for impairment 、 Intangible Assets depreciation reserves Wait, you can't be here Pre tax deduction Only the losses incurred in the actual occurrence can be deducted according to the facts. Therefore, most small and medium-sized enterprises do not handle the provision business at ordinary times, and only conduct accounting treatment when losses actually occur.

In case of actual related losses, the enterprise must pay tax authority Relevant evidence required shall be provided and approved after implementation. Some accountants do not accrue as required Provision for impairment Or from time to time Inventory loss , inventory loss, etc Final settlement Due to the inability to provide relevant evidence, all of them were Inspectors Elimination, increase Enterprise profit 。

In general, Labor union expenditure 、 Bad debt reserves , Bank Loan interest It can be withdrawn according to the accrual basis principle, and Pre tax deduction 。

accounting treatment

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（1） According to the new standards, some contents of the "prepaid expenses" account have not been accounted for in this account.

one Fixed assets under operating lease Improvement expenditure incurred

The improvement expenditure of fixed assets under operating lease shall be“ Long term deferred expenses ”Account accounting, and the remaining Lease Term And leased assets Remaining service life In the shorter period of the two, adopt reasonable methods for amortization.

two fixed assets repair cost

Fixed asset repair Expenses, etc., shall not be amortized or accrued, but shall be Included in current profit and loss 。 Fixed asset repair costs incurred by the production and administrative departments of enterprises, etc., are debited“ Administrative expenses ”Other accounts, credit“ bank deposit ”And other subjects; Fixed asset repair costs incurred by the enterprise related to the special sales organization, etc., are debited“ selling expenses ”Account, credit "bank deposit" and other accounts.

3. Prepaid operating lease of fixed assets Rental fee

Amortized over one year fixed assets Rental expenses , should be accounted in the "long-term deferred expenses" account.

four Amortization of low value consumables , Lending Amortization of packaging materials

use One-off write off method , according to the book value , Debit "administrative expenses"“ production costs ”"Selling expenses"“ engineering construction ”Other accounts, credit“ Revolving materials ”。

If other amortization methods are adopted, the "revolving materials (in use)" shall be debited and the "revolving materials (in stock)" shall be credited according to their book value at the time of requisition; At the time of amortization, the items such as "management expenses", "production costs", "sales expenses" and "engineering construction" shall be debited and the "revolving materials (amortization)" shall be credited according to the amortization amount.

（2） In addition to the above businesses, there are also businesses that need to be accounted for in the "prepaid expenses" account.

For example: Prepaid premium , prepay newspaper subscription fee, prepay Operating lease mode Lease in fixed assets Rent and one-time purchase Stamp duty receipt And one-time payment printing Tax amount Large amount to be apportioned, etc. But the newly released Chart of Accounts The "prepaid expenses" account is deleted, Balance Sheet The item "prepaid expenses" has also been deleted. There are several opinions on how to handle these businesses.

The first view is that the expenditure is included in the profit and loss once it occurs.

According to this view, prepaid expenses are paid by the enterprise but should be borne in the current and subsequent periods Amortization period For the expenses within one year (including one year), the impact on the profit and loss of the whole year is the same when the expenses are included in the profit and loss at one time and the amortization is included in the profit and loss. However, the author believes that such treatment is inconsistent with Accrual basis The accounting basis of the cost is not strictly divided into benefit periods, and it is impossible to correctly calculate each Accounting period The cost, profit and loss of the project cannot reflect "who benefits, who bears the expenses".

For example, the newspaper and magazine fees paid in December 2007 in 2008 cannot be included in the profits and losses of 2007.

The second view is to set the "prepaid expenses" account for accounting.

Accounting Standards for Business Enterprises According to the regulations, enterprises can add, split and merge on their own according to the actual situation of their own units Account 。 Therefore, if an enterprise has prepaid insurance premiums, prepaid newspaper subscription fees, prepaid rent of fixed assets rented by operating lease, and one-time purchase of stamp tax receipts, it can add the "prepaid expenses" account. Ending balance stay Balance Sheet Other in current assets ”Reflected in.

Example 1: Suppose an enterprise prepays 12600 yuan of insurance premium for the fourth quarter through the bank in October. among Basic production 6900 yuan for workshop, Auxiliary production 1800 yuan for workshop, enterprise administrative management 2700 yuan for departments and 1200 yuan for special sales agencies.

At the time of payment Accounting entry For:

Debit: prepaid expenses - prepaid insurance 12600

Credit: bank deposit twelve thousand and six hundred

In October, the enterprise will prepare to be amortized Expense distribution table (Omitted). Then, prepare the accounting entries according to the statement of deferred expenses distribution as follows:

Debit: Manufacturing expenses ——- Insurance premium 2900

Administrative expenses ——- Insurance 900

Operating expenses ——- Insurance 400

Credit: prepaid expenses - prepaid insurance premium 4200

The enterprise can make the same accounting entries in November and December as in October.

The third view: no "deferred expenses" subject is added.

When an enterprise prepays insurance premium, newspaper subscription fee, rent of fixed assets rented by operating lease, and stamp tax stamp“ Prepayments ”Account accounting, ending balance in the balance sheet“ Prepayments ”Reflected in the project.

Example 2: Assume that an enterprise will enter the market on January 1, 2007 Daily rent For management office equipment a batch,

The monthly rent is 7000 yuan, and the rent is paid at the beginning of each quarter. When paying rent on January 1:

Debit: advance payment - advance rent 21000

Credit: bank deposit 21000

The accounting entries prepared during amortization from January to March 2007 are as follows:

Debit: management expense - equipment rent 7000

Credit: prepayment - prepaid rent 7000

Example 3: Assume that an enterprise prepays 12000 yuan for newspapers and magazines in the first half of 2008 in December 2007, and the accounting entries are:

Debit: prepayments - prepayments for newspapers and magazines 12000

Credit: bank deposit 12000

As of December 31, 2007 Debit balance RMB 12000 is listed in the balance sheet“ Prepayments ”Project.

The accounting entries prepared during amortization from January to June 2008 are as follows:

Debit: Management expenses - newspaper and magazine fees 2000

Loan: advance payment - advance payment of 2000 for newspapers and magazines

Example 4: Suppose an enterprise prepays 12600 yuan of insurance premium for the fourth quarter through the bank in October. Including 6900 yuan for basic production workshop, 1800 yuan for auxiliary production workshop, 2700 yuan for enterprise administration department and 1200 yuan for special sales organization.

The accounting entries at the time of payment are:

Debit: advance payment - advance insurance 12600

Credit: bank deposit 12600

Debit: manufacturing expenses insurance premium 2900

Administrative expenses - insurance 900

Operating expenses - insurance 400

Credit: advance payment - advance insurance 4200

The enterprise can make the same accounting entries in November and December as in October.

The Application of Prepaid Expenses in VAT Accounting

For invoices Settlement voucher When the goods have arrived, the payment has been paid, but the materials have not been received, the accounting treatment is usually: debit "materials in transit"“ Tax payable ———— Value added tax payable ( amount of taxes on purchases ）”, credit "bank deposit", etc.

[Example 1] On May 10, Dahua Factory received the "consignment commitment settlement voucher" and invoice transferred from the bank for purchasing materials A of Daming Factory, with the quantity of 1000 kg, 10 yuan/kg, Input VAT 1700 yuan. use Document inspection and payment , make accounting entries after document inspection and payment as follows:

Debit: 10000 materials in transit

Tax payable -- VAT payable (input tax) 1700

Credit: Bank deposit 11700

According to the provisions of the current tax law, the goods purchased by industrial enterprises must be checked and accepted before they can be declared Deducted input tax 。 Therefore, the "input tax" of the purchase on May 10 does not meet the deduction conditions. If the above accounting treatment is carried out, it is easy to be confused with the purchase that meets the deduction conditions. In order to confirm the input tax amount allowed to be deducted in the current period, enterprises can use the "prepaid expenses" account. According to the above example, accounting entries are made as follows:

At the time of payment:

Debit: 10000 materials in transit

Deferred expenses -- VAT to be deducted 1700

Credit: Bank deposit 11700

Material acceptance When warehousing:

Debit: 10000 yuan for raw materials

Credit: 10000 for materials in transit

Debit: tax payable -- VAT payable (input tax) 1700

Credit: prepaid expenses -- VAT to be deducted 1700

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"Deferred expenses" and“ Withholding "Cost" has always been reflected Accrual basis principle The most important account. Issued by the Ministry of Finance in 2000《 Enterprise accounting system 》The "two fees" stipulated in (hereinafter referred to as "the original system") belong to the asset category and liability category respectively, and their ending balances are specifically listed in the balance sheet. Appendix "Accounts and main items" of "New Standards Application Guide" Accounting Treatment ”The accounts of "prepaid expenses" and "accrued expenses" have been deleted from, and these two items have been cancelled in the balance sheet of the enterprise accordingly, but no explanation has been made for the accounting treatment and statement presentation of businesses related to prepaid and accrued as stipulated in the original system, nor has any place explicitly indicated that prepaid and accrued expenses are allowed. In this way, many enterprises implementing the new standards accounting personnel The accounting treatment of prepaid expenses and accrued expenses has caused confusion. In the absence of any explanation from the authoritative department and the different opinions expressed by the academic community, many enterprises try to deal with it by themselves Accounting treatment method It can be said that there are many different kinds.

For example, some enterprises still keep the accounts of "prepaid expenses" and "accrued expenses", which are reflected in the "other current assets" and“ Other current liabilities ”Project; Some enterprises replace the "prepaid expenses" title with "prepaid accounts", "other receivables" and other titles, and reflect them in the "prepaid accounts" or "other receivables" and other items in the balance sheet of the new standards at the end of the period; Others replace the "accrued expenses" account by "accounts receivable in advance", "other payables" and other accounts, which are reflected in the balance sheet of the new standard at the end of the period“ Advance receipts ”Or "other payables".

1、 Reasons for canceling the accounts of "prepaid expenses" and "accrued expenses" in the new standard

（1） Follow the concept of assets and liabilities

Strengthening of new standards Asset liability view , Fade Income and expense view 。 The asset liability view is more consistent with the usefulness of information and will no longer bring about the future for enterprises economic interest That is, items that do not meet the asset definition are excluded from the balance sheet. For example, "prepaid expenses" are essentially expenses, which belong to valueless assets and are consumed once incurred by the enterprise“ Sunk cost ”, it does not use value , No Liquidity , if Enterprise bankruptcy It is impossible to use it to repay debts. If it is classified as an asset, it will increase the number of enterprises Total assets , boastful of enterprises Asset liability ratio , seriously affecting the enterprise financial index Is not conducive to investors' equity Production and operation And Financial position Make the right judgment.

Some of the above enterprises still retain "prepaid expenses" and“ Accrued expenses ”Account, or "prepayment"“ Other receivables ”、“ Advances from customers ”、“ Other payables ”Such alternative subjects are essentially the same and do not follow the asset liability view, which does not meet the requirements of the new standards.

（2） In line with the new standards Accounting Elements Definition of

Prepaid expenses refer to the expenses that have occurred and should be borne by the enterprise in the current period and subsequent periods, which are directly reflected in the outflow of economic benefits from the enterprise, Enterprise assets 、 Owner's equity The decrease of is not expected to bring any economic benefits to the enterprise, so it cannot be included in the asset category. According to the new standards, liabilities refer to the past transactions or events of an enterprise that are expected to lead to the outflow of economic benefits from the enterprise Current obligations 。

Look again at the definition of expense in the new standard. Expense refers to the total outflow of economic benefits that occurs in the daily activities of an enterprise, will lead to the reduction of owner's equity, and has nothing to do with the distribution of profits to owners. This definition can well contain the definition of "two fees", because each "two fees" sub item is set when economic benefits are likely to flow out of the enterprise, and the outflow amount of economic benefits of each project can be reliably measured. Therefore, the "two fees" should belong to the Charge element It is not an asset or liability element.

（3） No obstacle to accrual basis

The new standard improves the accrual basis to Basis of Accounting However, this does not mean that the "two fees" as the main account of accrual basis cannot be cancelled. Although it truly reflects the financial status and Operating results In terms of accrual basis Cash basis It has great advantages, but because of its inherent defects, it often brings great harm.

For example, accrual and Quality requirements of accounting information Of Substance over form 、 Cautiousness 、 relevance Contradiction with importance will make enterprises list assets and increase assets falsely Current profit 。 In recent years, many accounting methods, such as the setting of "two fees", have caused accurate disclosure of assets and liabilities negative effect With the outbreak of Enron and other scandals, it has been criticized. There is a high demand for improving the accrual basis. The revised cash basis (such as cash flow basis) also challenges the accrual basis. Previously, some scholars proposed that the "two fees" subject could not be set to measure the importance of accounting information quality requirements, so as to ensure that the assets and liabilities of enterprises can be more reasonably disclosed. This view is just in line with the requirements of the new standards.

（4） It is conducive to solving problems in practice

In practice, some enterprises deliberately play an account game when accounting for the "two fees" business, and use the "two fees" as a profit adjustment“ Reservoir ”Or "transformer", become enterprise whitewash Accounting statements The usual means of.

To sum up, make use of "two fees" False account There are mainly random changes in the amortization, accrual period, amortization and accrual amount of the "two fees": "linked but not amortized" to cover up losses; Include the content that does not belong to "two fees" into "two fees"; The content belonging to "two fees" is not included in "two fees": the "two fees" are amortized and withdrawn incorrectly: "two fees" are disclosed in the accounting statements inaccurate And so on.

In addition, the accrued expenses also increased Tax adjustment Workload. Therefore, the new standard cancels "prepaid expenses" and "accrued expenses" Transitional Account , which limits the operating space for the enterprise to adjust the profits of each period. The expenses incurred with the benefit period less than one year are directly included in the current profits and losses. This simplifies Accounting , which is easier to understand and also reduces Auditors For this class Operational audit Workload.

2、 Accounting treatment of deferred expenses stipulated in the original system under the new standards

The prepaid expenses stipulated in the original system refer to the expenses that have been paid by the enterprise but should be borne by the current and subsequent periods respectively, and the amortization period is within one year (including one year), such as Low value consumables And the amortization of leased and lent packages, prepaid insurance premiums, prepaid rent for operating leases, prepaid newspaper and magazine fees Seasonal production enterprises Large amount of expenses and one-time payment to be apportioned during the shutdown period stamp duty And fixed asset repair costs.

（1） Amortization of low value consumables and rental and lending packaging materials

The low value consumables and packaging materials in the original system are classified into the "reusable materials" account in the new standard for accounting. The application guide of the new standard points out that revolving materials refer to materials that can be used repeatedly and gradually transferred by enterprises but still remain in their original physical form and are not recognized as fixed assets, such as packaging materials and low value consumables, which should be written off once or 50% amortization method Amortization; Enterprise (construction contractor ）Of Steel formwork 、 plank sheathing 、 Scaffolding And other revolving materials can be written off once, amortized at 50% or Subordinate amortization method Amortization. The "reusable materials" account can be divided into "in stock", "in use" and "amortization" according to its type Detailed accounting 。

use One time amortization method The "administrative expenses"“ production costs ”, "sales expenses", "engineering construction" and other subjects, and credit the "revolving materials" subject. When scrapping reusable materials Residues The value is debited to "raw materials" and other subjects, and credited to "management expenses", "production costs", "sales expenses", "engineering construction" and other subjects.

If other amortization methods are adopted, the account of "revolving materials in use" shall be debited and the account of "revolving materials in stock" shall be credited according to the book value at the time of collection; At the time of amortization, according to the amount to be amortized, debit the "management expenses", "production costs", "sales expenses", "engineering construction" and other subjects, and credit the "revolving materials - amortization" subject. Reusable materials shall be scrapped Supplementary provision Amortization amount shall be debited to "management expenses", "production costs", "sales expenses", "engineering construction" and other subjects, and credited to "revolving materials - amortization" subjects. At the same time, according to the scrap value of scrapped revolving materials, debit "raw materials" and other subjects, and credit "management expenses", "production costs", "sales expenses", "engineering construction" and other subjects; And write off all the accrued amortization amount, debit the "reusable materials - amortization" account, and credit the "reusable materials - in use" account.

（2） Prepaid insurance premium, prepaid rent of operating lease, prepaid newspaper and magazine fees

The treatment of prepaid insurance premium, prepaid rent of operating lease, prepaid newspaper and magazine fees shall be included in the prepaid amount Related costs or Profit and loss account 。 The administrative department of the enterprise is responsible for organizing and managing the enterprise Production and operation activities The incurred expenses are included in the management expenses; Those incurred by the workshop (department) of the enterprise for the production of products or the provision of labor services are included in the manufacturing expenses; Those incurred in the process of selling goods and providing labor services shall be included in the sales expenses. When prepaying the above funds, debit the "management expenses", "manufacturing expenses", "sales expenses" and other subjects, and credit the "bank deposit" and other subjects.

（3） Expenses of seasonal production enterprises during downtime

According to the application guide of the new standard Seasonality Of Suspension loss , debit the "manufacturing expenses" account, credit the "raw materials"“ Payroll payable ”, "bank deposit", etc.

（4） Large amount of stamp tax to be apportioned at one time

For the treatment of stamp tax that needs to be apportioned with a large amount paid at one time, the application guide of the new standard stipulates that enterprises should calculate and determine the amount of stamp tax payable according to the provisions Mineral resources compensation 、 Property tax 、 Vehicle and vessel use tax 、 Land use tax , stamp duty, debit the "administrative expenses" account, credit“ Taxes payable ”Account.

（5） Fixed asset repair cost

According to the new standards, subsequent expenditures related to fixed assets that meet the conditions for recognition of fixed assets stipulated in the standards should be included in Cost of fixed assets If it does not meet the recognition conditions for fixed assets, it shall be included in the current profits and losses when it occurs. Fixed assets Routine maintenance Expenditure is only to ensure that fixed assets are in normal condition working condition In general, if the recognition conditions of fixed assets are not met, they should be included in the management expenses or selling expenses when they occur, and should not be handled in the way of accrual or amortization. According to the application guide of the new standard, subsequent expenditures such as fixed asset repair costs incurred by production workshops (departments) and administrative departments of enterprises, if they do not meet the capitalization conditions, should be directly included in the management costs. Subsequent expenses such as fixed asset repair expenses incurred by the enterprise in connection with the special sales organization are directly included in the sales expenses.

3、 Accounting treatment of accrued expenses stipulated in the original system under the new standards

The accrued expenses stipulated in the original system refer to the expenses that the enterprise has withdrawn in advance from the cost according to the regulations but has not yet paid, such as Loan interest , accrued rent, insurance premium and fixed asset repair cost, etc.

（1） Loan interest

The application guide of the new standard stipulates that“ Interest payable ”Account, accounting for the interest payable by the enterprise according to the contract, including Deposit taking . Interest payment by installments and principal repayment at maturity Long term borrowings , corporate bonds, etc. Balance sheet date , should press Amortized cost and Effective interest rate Calculated interest expenses , Debit“ Interest expense ”"Construction in progress"“ Financial expenses ”、“ R&D expenditure ”Etc., calculated and determined according to the contract interest rate Unpaid interest payable , credit the "interest payable" account, and debit or credit the "long-term loan" according to its difference—— Interest adjustment ”, "deposit taking - interest adjustment", etc. When the interest is actually paid, debit the "interest payable" account and credit the "bank deposit" account.

（2） Accrued fixed asset repair costs, rents and insurance premiums

According to the analysis of fixed asset repair costs in the expenses to be amortized, the new standard and its application guide will no longer accrue the repair costs of fixed assets, but will conduct corresponding treatment according to whether the expenditure can be capitalized when it is actually incurred. Repair costs that cannot be capitalized are directly included Current expenses , which can be capitalized and included in the book value of fixed assets. The rent and insurance premiums that should be borne in the current period may not be accrued. When the rent and insurance premiums are actually paid, they will be included in the relevant cost or profit and loss accounts according to the amount paid.

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