#C Fan Home - Accounting, Auditing, Investment Banker Improvement Platform #
"Question C Answer" Issue 10
[Important Tips: The Q&A shared in this article only represents personal opinions and is not equivalent to the audit standard, for reference only]
1. On the premise that the income distribution method in a partnership is different from the subscription ratio, does the amount of the internal transaction offset of the holding assets invested as a valuation in the partnership? Does it need to be determined based on the income distribution method agreed in the partnership agreement ?
C social : If there is an agreed income distribution method, the subscribed share shall be determined according to the agreement, and if there is no agreement, the share shall be paid.
2. The nucleic acid costs borne by the company are included in the welfare expenses? Or travel expenses? There are several situations where business trips are required. Leadership needs to do when he comes back from Hong Kong. These are all
C social : If the company bears this part of nucleic acid testing costs, it is recommended to directly include the management expenses. This does not belong to employee benefits, but is closer to labor protection costs. It can be included in the "travel expenses" and "labor protection expenses" and other accounts according to the regulations or habits of the enterprise.
3. Recently, a special audit of the audited unit's shareholders' investment in and equity transfer over the years. One of the shareholders is foreign-funded, Canadian. In addition to paying attention to the authenticity and compliance of capital contribution and equity transfer, is there any point that needs special attention?
C social : Basically as you mentioned, pay attention to the following two points in the process: (1) The source of the capital contribution, whether it is held on behalf of other shareholders, in order to obtain foreign capital tax preferential; (2) The fairness of the investment pricing, whether it is held on behalf of others, and whether it involves share payment.
4. During the reporting period, IPO companies have paid social security by individuals on their own by related parties. Does this need to be disclosed as an associated transaction? Do social security fees that have been paid for but have not been recovered need to be disclosed as related transactions? The company did not charge any additional fees for the above-mentioned social security payment. If the company charges part of the handling fee, will the above situation be disclosed as an associated transaction?
C Society: related natural persons are also related parties and need to be disclosed. If you are an individual employee of an affiliated company, you usually do not serve or invest in the issuer and do not act as an affiliate, and you will not be a affiliated party. The affiliated party determines that it has no necessary relationship with whether the handling fee is charged. It is recommended to clean up in a timely manner, which involves infringing on the company's interests and a large advance payment amount, and a handling fee is required.
5. At what time should the income of the export business of the manufacturer be confirmed? Is it related to the time when exchange collection ? When should the export tax rebate be handled?
C society :
(1) The time for confirmation of income is determined according to the trade terms and has nothing to do with the exchange rate time. Common trade terms are as follows:
1)EXW, when the seller handes over to the buyer for disposal at its business premises or other designated places (i.e., factory, warehouse, etc.) to the buyer for disposal, the delivery of the seller is completed;
2)FOB, the seller places the goods on a ship designated by the buyer at the designated port of ship;
is the delivery;
3) CIF, cost, insurance premium plus freight, when the goods cross the side of the ship at the port of ship, the seller completes the delivery;
4) FCA, the seller delivers the goods to the shipper designated by the buyer at its business premises or other designated places, and completes the delivery by the seller;
5) DDU, the seller handes the goods to the buyer at the designated destination for disposal, does not complete the import procedures, and does not unload the goods from the delivery means of transportation, and completes the delivery;
6) DDP When the seller at the designated destination, the goods that have been completed and placed on the arrival of the delivery tool are ready to be unloaded at the designated destination, it is the seller's delivery;
(2) Export tax rebate needs to be processed after the collection of foreign exchange. The specific regulations are as follows: According to the "Announcement of the State Administration of Taxation on the Issuance of the Management Measures for the VAT and Consumption Tax of Exported Goods" (Announcement of the State Administration of Taxation No. 24 of the State Administration of Taxation 2012), the declaration of tax exemption for export goods by manufacturing enterprises and foreign trade enterprises shall collect relevant certificates within the tax declaration period from the date of customs declaration to April 30 of the following year, and declare to the competent tax authority for exemption for export goods and consumption tax exemption for export goods. According to the "Announcement of the State Administration of Taxation on Issues Related to the Information on Refund (Exemption) of Exporting Enterprises for Tax Refund (Exemption) of Exporting Goods" (Announcement of the State Administration of Taxation No. 30 of 2013): Exported goods declared by export enterprises for tax refund (Exemption) must be collected within the date of the expiration of the tax refund (Exemption) period.
6. The contract assets of the same customer are inconsistent with the policy of that are related to the provision for impairment of accounts receivable provision for . Understand whether it is correct.
"2021 Annual Report Accounting Supervision Report of Listed Companies" 2. Expected Credit Loss is not properly reserved
Second, expectant credit losses are not reserved only on the grounds that the relevant funds are still in the credit period. Some listed companies divide accounts receivable into different combinations based on the credit period agreed in the contract. For accounts receivable during the credit period, the listed companies have not made up expected credit losses. Listed companies should analyze the customer's credit risk status based on customer credit risks and reasonably make provisions for impairment of .
5: The contract assets related to the same customer are inconsistent with the policy of impairment provision for accounts receivable. When measuring the expected credit losses of contract assets and accounts receivable related to the same customer, some listed companies adopt different provision ratios, among which the proportion of expected credit losses of contract assets of some listed companies is much lower than that of accounts receivable. The expected credit loss is based on the default risk of the customer. The default risk of the same customer is the same. When a listed company uses different provision ratios to measure the expected credit loss for the contract assets and accounts receivable of the same customer, it should fully analyze the reasons and rationality of the losses of the two with different default risk.
(1) Whether the accounts receivable in the above two items contain long-term receivable , long-term receivables have a credit period.
(2) Contract assets, accounts receivable, long-term receivable, etc. should all be based on customer credit risk. The contract assets related to the same customer are consistent with the provision for impairment of accounts receivable. Whether the three (contract assets, accounts receivable, and long-term receivable) are consistent within the same period, different account ages and stages may be inconsistent.
Under normal circumstances, especially in construction companies, it is common for owners to default on their arrears, but it does not mean that the owners will definitely default on their arrears.It is acceptable to use different ages as customers' different credit risks.
In extreme cases, if client A is sued to enter the bankruptcy stage or restricts high consumption or the defaulter (and it will continue to deteriorate), it is generally understood that client A's contract assets, accounts receivable, and long-term receivables have the same risks, and the time factor is no longer considered.
C social : Long-term receivables are equivalent to accounts receivable that contain major financing components. According to the financial instrument standards, it can be specified to measure its loss provisions in accordance with the amount equivalent to the expected credit loss within the entire lifetime. After designation, the expected loss is arrears as the general accounts receivable, and can be based on account age or migration rate, etc., but the specific arrears are inconsistent. After all, long-term receivables are installments, and unduly due should not be withdrawn if they are not due. It should be combined with the overall risk assessment of the enterprise and long-term receivables should be used as a separate risk combination.
Question: Long-term receivables are not considered. The policy of setting up impairment provisions for contract assets and accounts receivable is consistent. Do different account age periods need to be considered or not? Accounts receivables themselves have an overdue meaning, and the contract assets are not confirmed by Party A. Can the 2021 accounting supervision report continue to be discussed in these details.
C Society: Interpretation article has been published: "Regulatory Focus: How to make up expected credit losses for external guarantees, how to offset the receivable and payable of the same company"
7. Company A and Company B hold shares with each other, such as A holds 90% of B and B holds 49% of A. How to determine who is the parent company and who is the subsidiary? What should I do if I merge?
C Society : A is the parent company and B is a subsidiary. According to Article 30 of the consolidated financial statement standards, long-term equity investments held by subsidiaries shall be regarded as treasury shares of the enterprise group .
B holds shares of A as a treasury stock at the merger level of A, and the merger offsets: borrow treasury stocks and borrow long-term investment. A's long-term investment to B, as usual offset:
Debit: Company A's net assets Goodwill (if any)
Credit: Changtou Non-operating income (if any) Minority shareholder equity
For details, please refer to #C Fan Home# Standard Practice Course "The Seventh Cross-Share Holdings Merger Course", which has a merger demonstration process.
8. R&D-related employee compensation, capitalization and non-capitalization, how to list cash flow ?
C society : Capitalization forms intangible assets, investment activities, and expenses in business activities. According to the cash flow reporting standards, enterprises should list them in investment or operation according to the nature of the employees' work and service objects. See the picture for details:
9. Our company's foreign trademark registration entrusts an intermediary agency to handle it. The registration fee and agency fee total 60,000 yuan. Is it an intangible asset-trademark right or a direct entry fee? If the entry fee is an administration fee or a sales fee?
C Society: Application Guidelines according to the application of intangible assets standards: "Intangible assets mainly include patent rights, non-patent technology , trademark rights, copyright, land use rights, franchise , etc.." Trademark rights can be included in intangible assets, but in practice, trademark rights are usually difficult to price, and the company has not confirmed the relevant intangible assets. The corresponding registration and agency fees are directly charged, and the management fees are included in management fees.
10. How should the following businesses be handled? Background: Company A provides the data of the charging operators on the SYC platform of Company A to the interconnection channel providers (such as Evergrande , Huolala ), so that users of the interconnection channel providers can use the interconnection channel provider platform (Evergrande and Huolala APP) to awaken the interconnection charging pile stations (such as the charging piles of Company A) on the interconnection of the SYC platform of Company A and complete the charging service. The user's charging consumption funds will first be transferred to the Internet channel provider (such as Evergrande). After Company A and the Internet channel users are clear, the Internet channel provider will deduct the charging transaction fees and pay Company A.For example, Evergrande’s A user used Evergrande’s APP to charge 100 yuan on Company A’s charging pile on January 1, 2022. After Evergrande reconciliation with Company A, it will pay 100* (1-10%) = 90 yuan to Company A. 100*10%=10 yuan is the drainage fee. Should this business recognize revenue based on the net or total method? Using the total amount method, is the drainage fee recognized as a sales fee as a sales commission? Or should it be recognized as the operating cost as the contract performance cost? If the net amount method is used to confirm whether the income is in line with commercial essence ? Is there a possible tax risk (10% less VAT).
C Society : I think Evergrande should follow the net amount method. The use of electric pile is actually provided directly to users by A. The user only initiates demand through the Evergrande platform. A bears the main responsibility for charging services, and Evergrande assumes the agency responsibility. Just like Didi, drivers assume the main responsibility for passenger transport services, Didi bears the responsibility of agents such as transactions between passengers and drivers, life safety, etc. Taxation and accounting are two calibers. Taxation may be calculated based on invoices for collection. After all, please consult a specialist or other tax professionals for details.
Question: The main body of the consulting business is Company A, not Evergrande, and Evergrande is the channel customer of Company A. What I asked you about is how Company A should deal with drainage fees. The platform operated by Company A has self-operated charging piles and franchise operators. The specific pricing power is determined by the operator itself. Just like the third-party sellers on JD.com can price the products themselves, and the pricing power is not with Evergrande.
C Society : As mentioned above, A bears the main responsibility for charging. If 100 is set by Evergrande, add 10 yuan to the 90 yuan displayed on the charging display, then A directly confirms the income at the 90 yuan displayed on the charging display, which is equivalent to the user's burden of the service fee. If 100 is the charge displayed by A, then A recognizes the income at 100, and at the same time, 10 recognizes the contract performance cost.
Question: Why can't 10 be used as customer acquisition cost? Similar to the sales commission confirmation as the contract acquisition cost and subsequent conversion of sales expenses? Instead, confirm the contract performance cost? What is the reason for the difference between the two.
C Society : Does Evergrande provide more than just customer acquisition services, and does its agency responsibility also include the stability guarantee of the entire charging process? If it is just customer acquisition service, there is no problem with the cost of obtaining the contract.
Question: Evergrande's responsibility does not include the stability guarantee of the entire charging process. Its owned app will also show that the charging service is provided by the corresponding operator, and the relevant responsibility is borne by the corresponding operator.
C social : For example, do you want to maintain the rights and interests disputes between users and charging operators? That is to say, whether Evergrande is just customer acquisition service and does not assume other agency responsibilities. If so, you can get the cost by entering the contract.
11. What are the audit procedures, ideas, and information collected for real estate companies?
C social : Real estate companies' inventory mainly includes land and development costs, and the development costs include construction costs, interest costs, etc. There will be a large cost table for enterprises:
First, obtain relevant original documents item by item to verify and calculate, land certificate , construction contract , loan contract , four certificates, invoices, payments, etc.; the second is to review the accuracy of cost sharing. Enterprises will share, one is to share between different projects, and the other is to share between completed and unfinished, and the auditor will review it; finally, inventory depreciation calculation, comparing the surrounding housing prices to reduce sales taxes and fees with the book value of finished products ; for those that are not completed, plus the expected costs to be incurred until completion, it will be compared with surrounding housing prices to reduce sales taxes and fees.
12. Our company purchased 3 patents at one time. The remaining protection period stipulated by the laws of each patent are different. The total purchase price of these three patents is 7 million yuan (the purchase amount of each patent is not separately listed). Now we want to amortize them separately for the remaining years protected by the law. How should we amortize these three patents? Also, do you have any good methods or reasonable amortization options?
C society : (1) Questions about amortization period.According to the intangible assets standards, the intangible assets held by enterprises usually come from contractual rights or other statutory rights, and have a clear service life stipulated by the contract or law. If there is no contract to apply for use period, it can be based on the legal protection period; (2) Regarding value allocation, if there is no market price for each patent, it is recommended to evaluate it, and it is divided into 7 million yuan according to the fair value of and .
13. During enterprise mergers, the transfer of control rights and the consolidation of business must be met before it can be handled according to the principle of enterprise merger. Regarding whether the judgment constitutes a business, should we consider whether the conditions such as input, processing process, output, etc. are met from the perspective of the seller or from the perspective of the buyer (merger)? Or it depends on whether the merged target itself constitutes a business?
C Society : According to the statement of "Interpretation of Enterprise Accounting Standards No. 13", when a company determines whether the combination constitutes a business, it should consider it as a business from the perspective of market participants, rather than judge it based on the management intention of the merger or the business history of the merged party. Simply put, it is to look at the problem from a more neutral perspective and consider the general situation.
Explanation No. 13 My understanding is whether the merger target itself has the ability to invest/process in the market environment. Why can't the merging party be managed according to the intention of the merging party? Because the merging party can say that after the acquisition, the target company does not invest or process it, then whether to merge will become more subjective due to the management intention. Similarly, it cannot be based on the previous business conditions of the seller. For example, the seller did not invest or make good use of the target, so the target company's own investment/processing capabilities cannot be denied and merged as a business.
Welcome to join #C Fan Home#, This is an audit investment bank financial verification and standard practical training platform created by C Society for investment banks, auditors, and corporate accounting personnel. Thousands of students are here to listen to lectures systematically and discuss in depth, and make progress with President C! Scan the QR code to learn more:
For more articles, please add the official WeChat account: CPA Learning Society
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-