On the balance sheet date sales income tax return processing

Thesis Keywords: balance sheet date sales to return the income tax treatment

Abstracts: Return of sales refers to the enterprises sold goods because of quality, variety does not meet the requirements because the return for the Return of sales, the enterprise should be a different accounting treatment. This article will discuss the balance sheet date sales returned to explore .

Return of sales, the balance sheet date occurred in both the reporting year, or report the medium-term sales of goods returned in the balance sheet date sales also includes future sales of sales of goods during the previous reporting year or in an interim report on the balance sheet returns that is, the balance sheet belongs to the period or before during the sale of goods in the balance sheet to be returned, should be a matter of balance sheet adjustments in future. In addition, the future in the balance sheet to the financial report is authorized between the reported Return of sales matters may occur before the final settlement of the annual income tax, may also occur after the final settlement of the annual income tax.

(Guo Shui Fa [2003] According to the State Administration of Taxation on the implementation of the << Enterprise Accounting System >> clear the Income Tax Issues No. 45 provides that: the balance sheet events occurred prior to the corporate year-end tax declaration, involving taxable income tax adjustments, tax adjustments should be used as the annual accounting reports, the business end of the year to declare the tax final settlement after the balance sheet events, the taxable income adjustment should be involved as this year's tax adjustment.

The balance sheet date the principles of the adjustment of matters is to adjust the balance sheet date the financial statements prepared for the annual financial report, the matter of adjustment often involves the income tax accounting treatment of specific should be adjusted to the current income tax or deferred income tax reporting year should be as the case may be an example to analyze the adjustment of matters of income tax accounting treatment of sales returned.

First, the sales that occurred prior to the final settlement of the reporting year income tax returned

Balance sheet events involved in sales during the reporting year belongs returned before the final settlement of the reporting year, income tax should be adjusted to report annual income statement of income, cost, and a corresponding adjustment to the annual report taxable income and the reporting year income tax payable.

Example 1, Company A November 20, 2010 the sale of a number of goods to Company B, revenue $ 500,000 (excluding VAT, the VAT rate is 17%, A company merchandise, normally recognized income and carry-over cost of 400,000 yuan, December 31, 2010, the sum of money not yet received a company's accounts receivable provision for bad debts on February 10, 10,000 yuan .2011 years, due to product quality problems, this shipment be returned. assume that A Company for the year in addition to provision for bad debts of amounts receivable from Company B, no other matters of tax adjustments. A February 28, 2011 to complete the 2010 income tax final settlement, the income tax rate applicable to the Company for 25 %, the financial report is authorized for March 31, 2011.

In this case, sales returned to business in the balance sheet events covering the period belongs to the balance sheet adjusting events in the future. Return of sales a company reports before the annual income tax final settlement in the final settlement of the income tax should be deducted the part of the Return of sales amount of taxable income.

(1) A company's accounting treatment as follows:

(A reduction in 2010 sales.

By: prior period adjustments 500 000

Taxes payable - VAT payable (output tax amount 85000

Credit: Accounts receivable - Company B 585 000

(2 reduced cost of sales in 2010.

By: inventory of goods 400 000

Credit: The prior period adjustment 400 000

(3 reduced provision for bad debts in 2010 to prepare.

By: bad debts 10000

Credit: The prior period adjustment of 10000

(4) Provision for bad debts written off, deferred income tax assets recognized in the end of 2010 under the receivables book value and tax basis differences should be eliminated.

By: prior period adjustments 2500

Credit: Deferred income tax assets 2500

(Return of sales before income tax final settlement, and should therefore be reduced reporting year (2010 year the taxable income of 100,000 yuan and income tax expense, at the same time reduced the taxes payable - Income tax payable.

By: Taxes payable - Income tax payable 25,000


Credit: The prior period adjustment of 25000

(6 "prior period adjustments to the account balance to the distribution of profits - Retained earnings" account.

By: distribution of profits - the undistributed profits 67500

Credit: The prior period adjustment of 67500

(7 corresponding reduced surplus due to reduced retained earnings reserve.

By: surplus reserve 6750

Credit: The distribution of profits - the undistributed profits 6750

(2) adjusting the reporting year (2010 financial statements the number of related projects (slightly

Second, the sales that occur after the final settlement of the reporting year income tax returned

Balance sheet events involved in the reporting year, the period of sales returned after the final settlement of the reporting year income tax should be adjusted to the reporting year (2010 annual accounting statements of revenues, costs, but returned in accordance with the tax law during this period sales involved in the income tax payable, as the current year (2011) tax-adjusting events. Share Free paper Download Center http://eng.hi138.com
Example 2, for the previous example, assume that sales returned in March 2011 on the 1st.

(1) A company's accounting treatment as follows:

(A reduction in 2010 sales.

By: prior period adjustments 500 000

Taxes payable - VAT payable (output tax amount 85000

Credit: Accounts receivable - Company B 585 000

(2 reduced cost of sales in 2010.

By: inventory of goods 400 000

Credit: The prior period adjustment 400 000

(3) reduced the 2010 provision for bad debts.

By: bad debts 10000

Credit: The prior period adjustment of 10000

(4 to adjust the original Deferred income tax assets.

By: prior period adjustments 2500

Credit: Deferred income tax assets 2500

(5 "prior period adjustments to the account balance to the distribution of profits - Retained earnings" account.

By: distribution of profits - the undistributed profits 92500

Credit: The prior period adjustment of 92500

(6 corresponding reduction of surplus due to reduced retained earnings reserve.

By: surplus reserve 9250

Credit: The distribution of profits - the undistributed profits 9250

(2) adjusting the reporting year (2010 financial statements the number of related projects (slightly

Should be noted that: the balance sheet date the period covered by the sales returned are adjusting events occurred in the reporting year, the year following the reporting year the accounts have been carried forward, in particular, is no longer balance the profit and loss account checkout, should be By "prior period adjustment" account to adjust the previous year's sales revenue, cost of sales, asset impairment loss, income tax expense and loss category subjects, while adjusting the tax payable, accounts receivable, inventory of goods, bad debts, deferred income tax assets under the tax law, asset impairment loss does not allow tax deduction provision and write-off of bad debts can be offset to the formation and reversal of temporary differences do not affect the calculation of the reporting year taxable income. sales return before income tax final settlement should be reduced taxes payable and income tax expense of the reporting year, sales returned to occur in the final settlement of the income tax should be adjusted taxable income for the year, reporting year, the formation of a deductible temporary differences and deferred tax assets.

References:

[1] Ministry of Finance. << Accounting Standards for Enterprises >> (M] Beijing: Economic Science Press, 2006.

[2] Ministry of Finance. << Accounting Standards for Enterprises - Application Guide >> (M), Beijing: Economic Science Press, 2006.

[3] << accounting >> Chinese Institute of CPAs (M], Beijing: China Financial and Economic Publishing House, 2011.
[4] Ministry of Finance. Accounting qualification evaluation. Intermediate Accounting Practice (M), Beijing: Economic Science Press, 2011. Share Free paper Download Center http://eng.hi138.com

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