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From December 29, 2001, the Ministry of Finance, Accounting  No. 25, issued a "notice" on the issuance of the "enterprise accounting system", the notification requirement Corporation from January 1, 2001 implementation of the "enterprise accounting systemââ‚¬Â The original "Limited accounting system - of accounts and accounting statements" abolished at the same time. There are major changes in the New accounting system and the old accounting system.
Management Accounting System Feature:
Reflect the principle of unity. The new system is no longer sub-sector (excluding financial and insurance enterprises and foreign financing, small scale enterprises)
Embodies authenticity (objectivity, reliability) principle.
Reflect the accounting standards internationalization. Such as the end of the inventories, investments, fixed assets denominated.
Try to be consistent with the tax laws cannot be consistent with the appropriate separation (to take tax adjustment method for processing).
Detailed Account of the monetary fund "other monetary fund" cancel "in transit monetary funds, credit card deposits, the credit margin deposits," kept out of investment money".
1. Receivables accounting
Provision for bad debts in the range. The new system will require the purchase and sale of enterprise activities receivables and non-purchase and sale activities receivable debt (for example, a variety of claims, save a deposit, imprested, and charged to the worker advances at) Provision for doubtful debts.
2. Treatment of bad debt losses. The direct write-off method used by the original accounting system repair on an accrual basis, the new accounting system for all the allowance method.
3. In order to solve the provision for bad debts of randomness, the new accounting system shall not be permitted to extract secret preparations. Secret preparation extracted more than the actual loss of assets and more assets for impairment.
4. Inventory accounting
(1) The ending inventory valuation is no longer just the original cost, using the lower of cost or market valuation.
(2) Donations of inventory valuation in different ways. The new system requires the different treatment: donors provide credentials; donated inventory there is an active market; there is no active market.
(3) Debt restructuring and non-monetary transaction, inventory processing by accounting standards.
(4) The overage accounted for an estimated value of inventories, change valued at market prices.
(5) Closing stock price of less than the difference between the historical cost of inventories, the new system provides directly included in "administrative expenses" schedule reflects the end of the asset for impairment. The old accounting system for inventory obsolescence is credited subjects, the end of the year reflected in the income statement.
Fixed assets accounting
(1) VAT refundable foreign enterprises to purchase domestic equipment write-downs of the carrying value of fixed assets.
(2) Investors invested in fixed assets, the original investors cast the assessed value of the asset is accounted for; under the new system is accounted for by the value of the parties confirmed.
(3) Donated fixed assets, the old accounting system carried reset full value; under the new system the credentials provided by donors accounted for, no credentials are accounted for by the market price of similar assets, no similar fixed assets market price stated at the present value of its future earnings.
(4) the value of the fixed assets transferred free of charge, the old accounting system accounted for according to the original cost of units transferred out instead transferred units net plus transport fees, installation fees, costs associated with the new system, after depreciation according to the remaining useful life lives.
(5) Non-monetary transactions through debt restructuring, change into the treatment of fixed assets, the implementation of accounting standards require.
(6) The overage of fixed assets, the old accounting system requirements are stated at replacement cost; new system similar market value minus stated at the net after the newness the depletion of assessed value instead.
(7) On the construction of fixed assets, if you have reached the state, but did not apply for the completion of formalities, the estimated value is transferred to fixed assets accounts depreciated.
(8) on fixed assets is expected to age and usage, the old accounting system net residual rate of 3% -5%, foreign-funded enterprises was 10%; Under the new system is decided by the enterprises themselves, according to the fixed assets category, characteristics, their own actual conditions.
(9) For donations of used fixed assets, should be based on the adjusted expected value and the expected remaining useful life and net salvage value, and selection of the depreciation method for processing.
(10) Add the unrecognized finance charge "the difference between the original subjects, accounting corporate finance lease fixed assets, lease start date of the lease assets book value and the present value of the minimum lease payments.
(11) Overage fixed assets overage inventory processing; the end of the year may not open account.
(12) New "impairment of fixed assets" subjects, period fails individually assessed impairment of fixed assets, and losses are included in "operating expenses".
(1) The treatment of intangible assets of non-monetary transactions.
(2) The subsequent cost of intangible assets, profit or loss.
(3) Net gain on sale of intangible assets included in operating income, rental income of intangible assets, included in other operating income.
(4) Increase the impairment of intangible assets "subjects, according to the individual impairment provision, an impairment loss is included in" operating expenses ".
Add for impairment of construction in progress "subjects, impairment losses included in" operating expenses ".
Cancel the deferred assets "subject included in long-term prepaid expenses, preparation costs incurred during the time since the commencement of production operations from the month through profit or loss are included in administrative expenses.
9. Investment accounting
(1) The cost of investment is divided into initial costs and investment costs.
(2) A non-cash asset investment as non-monetary transactions.
1. Consignment of goods shall be recognized as a liability.
2. The victory unified distributed to shareholders and profits as dividends payable, the original system includes only cash dividends, excluding profits payable.
3. Meet the conditions for the recognition or liabilities, should be recognized as a realistic liabilities
4. Earmarks accounted for separately, included in the special accounts payable, until the completion of the project, in accordance with the formation of the value of fixed assets transferred to the capital reserve.
5. Unable to pay accounts payable originally included in non-operating income, the provisions of the new system are included in capital surplus.
6. Borrowing costs are accounted for separately established guidelines.
1. Separate accounts to accept donations of cash and non-cash.
2. Genuinely unable to pay accounts payable included in capital surplus.
3. The new system allows the surplus reserve for the distribution of cash dividends or profits.
Revenues, costs, expenses, and profit distribution
1. Revenue stressed that the "substance over form principle".
2. The net proceeds of disposal of intangible assets included in operating income.
3. Net loss on disposal of intangible assets, provision for impairment of intangible assets, impairment of fixed assets are included in operating expenses for impairment of construction in progress.
4. Inventory devaluation losses included in "administrative expenses".
Changes in financial and accounting reports
Changes in financial and accounting reports
1. Increased reporting and content: Impairment of assets "schedule."
2. Changes in the balance sheet of the situation:
(1) The assets (fixed assets) are carried at net reflects. The Entrusted Loan prepare were reflected in short-term investments and long-term investment projects.
(2) The table is no longer "pending property profit and loss, there are still subjects to deal with the end of the year, and not allowed to open account.
(3) Liabilities increased project "expected liabilities".
3. Changes in the income statement:
(1) "Operating expenses" moved under "Other operating profit".
(2) The canceled for inventory obsolescence project transferred to the management cost accounting is no longer as an item of the income statement.
4. Statement of Cash Flows Changes in:
Cash flows from operating activities; VAT is no longer separated from the ad valorem tax.
View from the accounting system reform, mainly the following two content:
1. Implement the principle of prudence, comprehensive provision for asset impairment. "Enterprise accounting system in accordance with the requirements of the accounting conservatism principle of accounting elements redefine the comprehensive revision of content that does not meet the definition of accounting elements, does not comply with the recognition and measurement of accounting elements, to require enterprises of untrue assets must impairment allowances, including the provision for bad debts, inventory provision for diminution in the value of short-term investments for diminution in value of long-term investments for impairment, impairment of fixed assets, impairment of intangible assets for impairment of construction in progress, commissioned loan impairment charges. From the standpoint of accounting rules and norms, efforts to resolve the problem of false corporate profit and loss, the short-term behaviour and accounting information distortion, promote enterprise relieved the burden of travelling light.
2. The implementation of the phase separation of accounting and tax practice. Accounting system and tax system of enterprises phase separation is a common international practice, in practical work, the accounting system, if any, and the tax system is inconsistent or uncoordinated financial results calculated according to the accounting system, and should be adjusted in accordance with the tax system profits. For example, the current accounting system AG extraction Lu Xiang prepare, extraction ratio determined by the enterprises themselves, which necessarily inconsistent accounting system and the state's tax provisions, and in this case, the enterprises should be accounted for in accordance with the accounting system in the calculation of tax adjustments in the income tax. If you do not implement the phase separation of accounting and taxation, accounting robustness of certain accounting principles will not be able to carry out.