 Wysłany: Sob 4:18, 16 Kwi 2011 Temat postu: Discussion on the principle of prudence in the use |
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| Discussion on the principle of prudence in the use of accounting in the enterprise
Abstract: The principle of prudence in the use of business accounting is an important principle, Extensive use of the principle of prudence, and prevent enterprises packaging market, exaggeration of assets, maximize profits is occurring, the parties can provide a more real and reliable accounting information will help protect the interests of creditors and minority shareholders, and improving the market competitiveness. However, due to the principle of prudence in the use of obvious bias, subjective weakness and so on. With the expansion of the scope of application, human adjustment costs, profit manipulation of the space increases. How to apply this principle to strengthen the study of accounting theory, accounting staff to improve service quality and professional ability to judge is the key. Chinese papers League finishing. Keywords: accounting principle of prudence; accounting information; assets; profit in reasonably possible losses and expenses. assets or income, less accrued liabilities or expenses, but not provision for a secret. The principle of prudence, also known as the principle of stability, or conservatism. It is for the uncertainty in business activities, asking people to remain in the accounting treatment of the attitude of caution. When certain economic activities or transactions with two or more methods are available, without affecting the logical choice as far as possible use the premise of a non-inflated profits and inflated assets, accounting methods and procedures, no more Total assets or income, many of accrued liabilities or expenses, reasonable accounting of losses and expenses that may occur. The principle of prudence in the use of business accounting is an important principle, especially the newly promulgated In fact, it's specific application is not started today is already in use in China in business accounting, but the large scope, content as much as with the First, the principle of prudence in the use of business accounting and accounting reflected in the application of the principle of prudence, reflected in the Some examples to illustrate. 1. Given the choice of inventory valuation method. When using the actual costing of inventories, valuation of inventories means there are FIFO, LIFO, weighted average, moving weighted average method and the specific identification method. When prices rise, the valuation of inventories using LIFO, will cost close to current levels of current and reduce the profits of water, closing stock value is low, reflecting the principle of prudence. If using FIFO method will cause the cost of low current profits in the water increase, increase the value of closing stock, can not achieve the purpose of robustness. 2. Fixed assets depreciation method choice. Depreciation of fixed assets depreciation method is flat rate (the average life method, the workload of law) and accelerated depreciation (the sum of years of law, double declining balance method) two broad categories. If companies use accelerated depreciation provision for depreciation of fixed assets, will enable enterprises in the fixed assets of more than a few years ago to use depreciation to reduce profits, pay less income tax, equal to the sum of interest-free loans made, and can input money back as soon as possible to improve the utilization of funds, reflecting the cautious nature. 3. Provision for asset impairment of eight. the provision for asset impairment loss of assets. This fully embodies the principle of prudence, the starting point is that requires companies to value the loss of an asset may be fully considered and included in the relevant costs to ensure that the assets of enterprises more real, effective, and to ensure that the financial position and operating secure the outcome, to ensure long-term interests of investors are well protected. (1) short-term accounts receivable. Short-term investments at end of the market price is lower than cost, at market valuation; when the market price higher than the costs, at cost. On the difference between the market price below cost, short-term investments should be provision for diminution in value. In the balance sheet, short-term decline in value of investment projects prepared by subtracting the net amount after reflection. This method only confirmed loss of market decline, rising prices are not recognized revenue, frequent changes in the current stock market situation without rules, to ensure the company's financial position is strong. (2) bad debt losses. mentioned method (the original provisions of the accounting system the industry uses the percentage of accounts receivable balance method), and determined by the enterprises themselves, which increases the choice to the enterprise space, is conducive to business against bad debt losses arising from risk. (3) inventories. Stock companies in accordance with historical cost. However, in market economy conditions, changes in stock prices, in particular the development of technology, allowing for faster and faster updates, due to stock market decline, old, obsolete, damaged and other reasons, leading to reduction in the value of inventory. If historical cost is still obviously not conducive to the flow of corporate funds, there the phenomenon of exaggerated assets, resulting in distortion of accounting information, does not meet the principle of prudence. Therefore, the When the cost is lower than net realizable value of inventory at cost; when the cost is higher than the net realizable value of inventories at net realizable value pricing. Inventories at net realizable value less than the cost of parts,p90x calendar, provision for inventories. In the balance sheet, inventory items in accordance with the diminution in value after subtracting the net reflected. (4) long-term investments, fixed assets, impairment of intangible assets. recoverable amount is lower than its book value, it should be provision for long-term investments, fixed assets, intangible assets for impairment. In the balance sheet, long-term investments, intangible assets, less provision for impairment in accordance with the project's net reflect impairment of fixed assets, net fixed assets as a deduction item. (5) Provision for impairment of construction in progress. Enterprises in the construction project is expected to be impaired, such as long-term cessation of the construction and not expected to reopen within three years of construction in progress, should be provision for asset impairment under the regulations. In the balance sheet, in the construction of the project construction by less impairment in the balance reflected. (6) entrusted loan impairment. Enterprises should be entrusted to conduct regular inspections of loan principal in accordance with the recoverable amount of the loan principal entrusted cooked low measurement, the recoverable amount and the difference between the loan principal delegate shall be impaired. In the balance sheet, commissioned loan principal and interest receivable less provision for impairment of the net, into the short-term investments or long-term debt investment projects. In addition, the 4. To set capital reserve project preparation. temporarily recognized as a common interest in preparing projects included in capital reserve, to be non-cash assets or disposal of long-term equity investments only after the realization of project benefits to the general reserve. 5. To be treated or loss of property disposed of to the year. If the inventory results does not match with the record book, the reasons should be identified before the end of the period, and according to the management authority, general meeting of shareholders or board of directors or managers (director) meetings and similar approvals, finished before the end of checkout. Thus, the backlog of business-to long-term depreciation of poor liquidity, higher than the market value of the inventory carrying cost and overage, shortage, damage to the treatment of fixed assets have sufficient autonomy to ensure the liquidity of the two assets. |
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