In December 2017, the Ministry of Finance issued the "Notice on Revision and Issuing the Format of General Enterprise Financial Statements" (Financial and Accounting [2017] No. 30), one of which was the addition of new items such as " Asset Disposal Income " to the "Income Statement". This article combines the "Annual Tax Return for Enterprise Income Tax of the People's Republic of China (Class A, 2017 Edition)" to analyze the tax returns and financial presentation of asset disposal and profits and losses.
Asset Disposal Profit and Loss Tax Return
Corporate Income Tax Divides the assets of the enterprise into six items, fixed assets, biological assets, intangible assets, long-term deferred expenses, investment assets and inventory. There is no fundamental difference between the classification of assets by taxation and the classification of accounting standards , but some assets are subdivided into several categories in accounting standards, but they are classified into one category in tax laws. For example, investment assets in tax laws include long-term equity investment and financial instruments. For asset disposal profit and loss, the new tax return is processed as follows:
1. For the disposal of fixed assets, under construction projects, productive biological assets and intangible assets, the "Tax Adjustment Project Detailed List" (A105000) and "Tax Adjustment Detailed List" (A105090) must be filled out.
2. For long-term equity investment and financial instrument disposal, the disposal income is adjusted in the "Detailed Table of Tax Adjustment of Investment Income" (A105030), and the disposal loss is adjusted in the "Detailed Table of Tax Deductions and Tax Adjustment of Asset Losses" (A105090).
case 1: On October 8, 2017, Tongsheng Company scrapped a machine and equipment in advance. The original value of the equipment was 150,000 yuan, depreciation of 60,000 yuan had been set, impairment provisions were set, and 20,000 yuan had been set, and the income from disposing of waste materials after scrapping was 10,300 yuan. Assuming that the company is a general taxpayer, the disposal of this equipment meets the conditions for simplified tax calculation and issue a special VAT invoice at a 3% collection rate.
accounting treatment is as follows: (unit: 10,000 yuan, the same below):
(1) Fixed asset transfer and cleaning:
Debit: cumulative depreciation 6
Fixed asset impairment provision 2
Fixed asset cleaning 7
Loan: Fixed assets 15
(2) Revenue obtained for sale:
Debit: Bank deposit 1.03
Loan: Fixed asset cleaning 1
Taxes and fees payable-simple tax calculation 0.03
(3) Cleaning net profit and loss carryover:
Debit: Non-operating expense disposal-non-current assets losses 6
Loan: Fixed asset cleaning 1
Loan: Fixed asset cleaning 6
Tax declaration: The second column "Asset loss account amount" corresponding to the "Detailed List of Asset Loss Pre-Tax Deduction and Tax Adjustment" (A105090) "(II) Non-monetary Asset Loss Losses" is 60,000 yuan, the third column "Asset disposal income" is 10,000 yuan, the fifth column "Asset tax basis" is 80,000 yuan, and the seventh column "Tax adjustment amount" is -20,000 yuan.
"Detailed List of Tax Adjustment Projects" (A105000)" in line 34, "(III) Asset Loss (Fill in A105090)" is 60,000 yuan, the "Tax Amount" in the second column is 80,000 yuan, and the "Reduced Amount" in the fourth column is 20,000 yuan.
Asset Disposal Profit and Loss Financial Reporting
Finance and Accounting [2017] No. 30 added a "Asset Disposal Income" profit statement item, reflecting the gains or losses recognized by the enterprise when selling non-current assets divided into holdings for sale (except financial instruments, long-term equity investments and investment real estate) or disposal groups, as well as disposal gains or losses caused by disposing of fixed assets, under-construction projects, productive biological assets and intangible assets that are not divided into holdings for sale. The gains or losses arising from the disposal of non-current assets and the gains or losses arising from the exchange of non-monetary assets during debt restructuring are also included in this item. This item should be filled in based on the analysis of the amount of the "Asset Disposal Profit and Loss" account newly set up in the profit and loss account; if it is a disposal loss, fill in it with the "-" number. The specific content is as follows:
1. The income statement of asset disposal does not include the following contents: (1) disposal of liquid assets such as inventory, consumable biological assets, accounts receivable; (2) financial instruments and long-term equity investment; (3) investment real estate; (4) gains or losses of debt restructuring and gains or losses of exchange of non-monetary assets.
2. The newly added "Asset Disposal Income" account is different from the accounting scope of the "No-operating Expenditure" account.The "Asset Disposal Profit and Loss" account calculates the disposal gains or losses arising from the sale of fixed assets, projects under construction, productive biological assets and intangible assets. The "No-operating expenditure" account calculates debt restructuring losses, public welfare donation expenditures, extraordinary losses, loss, loss, and non-current assets damage and scrapping losses. That is, the profit and loss of non-current assets will be included in the "Asset Disposal Profit and Loss" account, and the scrap or loss of non-current assets will be included in the "No-operating expenses" account. It turns out that the content of the accounting of "No-operating income (distribution)" is collected from the "Asset Disposal Profit and Loss" account.
Example 2: Both Tongsheng Company and Tongqiang Company apply a value-added tax rate of 17%. Tongsheng Company's accounts receivable of 36.6 million yuan of Tongqiang Company have been overdue, and it has been decided to reorganize the debt after negotiation. The debt repayment information on the debt restructuring of Tongqiang Company is: (1) Payment of 1 million yuan of Tongsheng Company's accounts with bank deposits; (2) Payment of the remaining debts with a fixed asset. The cost of Tongqiang Company's equipment is 28.5 million yuan, and a depreciation of 500,000 yuan has been set aside, and the fair value excluding tax is 30 million yuan, and the liquidation fee is 500,000 yuan.
(1) Tongqiang Company Accounting Processing:
Debt Restructuring Gains = 3660-(100+3000×1.17) = 500,000 yuan.
asset disposal profit and loss = 3000-(2850-50)-5=195 (10,000 yuan).
Debit: Fixed Assets Cleanup 2800
Cumulative Depreciation 50
Credit: Fixed Assets 2850
Debit: Fixed Assets Cleanup 5
Credit: Bank Deposit 5
Debit: Accounts Payable 3660
Credit: Bank Deposit 100
Fixed Assets Cleanup 3000
Taxes and fees payable—Value added taxes payable (output tax amount) 510
Non-operating income—debt restructuring gains 50
Debit: Fixed asset cleanup 195
Credit: Asset disposal profits and losses——profits for disposing of non-current assets 195
Financial presentation: The "Account for Asset Disposal Income Statement" is RMB 1950,000 in the current period, and the "Debt Restructuring Gains" is RMB 500,000 in the current period.
Tax declaration: "Detailed List of Tax Adjustment for Enterprise Restructuring and Deferred Tax Matters" (A105100) Line 2 "In which: Debt Payment with Non-monetary Assets" in the first column "The "Operation Amount" is RMB 200,000, the "Tax Amount" in the second column is RMB 20,000,000, and the "Tax Adjustment Amount" in the third column is RMB 0.
Author: Fu Zemin Qin Wenjiao
Author unit: Binzhou Highway Administration Bureau, Shandong Province
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