Newly enacted <<Accounting Standards No.
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Post Time:2011-12-26 11:03:00
18 - Income tax>> in the balance sheet liability method for income tax accounting treatment, in view of our practitioners are relatively unfamiliar to the law, this will balance sheet liability method of introduction, and familiar with the income statement liability method of comparative analysis.
A 、 overview of the balance sheet liability method, the balance sheet liability method is expected back at the year's income tax rate to calculate the tax effect of, as a deferred tax liability or deferred tax assets as a method from the balance sheet liability method temporary differences arising from the nature, analyzing the causes of temporary differences and the closing balance 、 liability impact. the balance sheet liability method to confirm that all deferred tax assets and deferred income tax liabilities. 1 、 tax base.
Tax base is the tax authorities under the 、 tax when an asset or liability attributable to the amount Specifically, the tax basis of assets is book value of assets of an enterprise to recover the process, the calculation of taxable income, in accordance with tax law can be deducted from the taxable amount of economic benefit if the tax base is less than the carrying amount of the taxable temporary differences, and vice versa resulting in deductible temporary differences liabilities of the tax base is defined as debt minus the book value of future taxable income during the calculation of the amount can be deducted in accordance with the provisions of the amount of tax, if some or all of the liabilities in future periods to offset the amount of taxable economic benefits, this amount may be deductible in future periods constitute deductible temporary differences; if the debt is not deductible in future periods taxable economic benefits, the liabilities of the tax base equal to its carrying amount, no temporary differences. 2 、 temporary differences.
In accordance with <<Accounting Standards No. 18 - Income tax>> on the temporary differences is defined as the book value of assets or liabilities and their tax basis of the difference between; not recognized as assets and liabilities items can be determined in accordance with tax law its tax base, the tax basis difference between its book value is also a temporary difference illustrates the assets of the temporary differences: a foreign-funded enterprises to accept donations of fixed assets combined total of ad valorem duty of 10 million, the other payment of freight and insurance is $ 10,000, accounting for its treatment: the total tax and freight price as the recorded value of fixed assets, but only the ad valorem tax on the total value of assets recorded for the confirmation, and the extraction of the depreciation deduction in the tax base, when the temporary differences arising from the business: 110,000 yuan -10 million = 1 million examples of temporary differences on liabilities: Enterprises have a maturity The long-term debt borrowings 100 million, accrued interest on borrowings corporate quarterly total of 3 million loan to pay principal and interest due $ 30,000, then the book value of liabilities for the quarter of $ 10.3 million, while the total debt tax base: the book value of liabilities - tax law of the future tax deduction amount = 103-3 = 100 million, then the temporary difference arising from the business as follows: 1.03 million yuan -100 million = 30,000 million.
Second, the balance sheet liability method and the income statement liability method of comparison (a) both the same point 1 、 the same theoretical basis, are on the rights of property owners.'s Balance sheet and income statement liability method of income tax liability method are that the cost of nature rather than income distribution, both corporate income tax is that ultimately, net profit for the expenses incurred, in line with the definition and nature of costs and should therefore be treated as an expense. 2 、 line accrual.
Debt Law changes in income tax rates for adjustment of a deferred tax asset balance, adjusted according to changes in the amount of tax rates, so is the debt for income tax timing differences on the impact of the original amount in the accounting statements payable in the future as a future debt or on behalf of an asset that can truly reflect the actual tax impact of more interest accrual.
(B) the difference between 1 、 accounting "discrepancies" different income statement liability method is based on timing differences, and the balance sheet liability method on temporary differences concept. The income statement liability method to timing differences on the future the impact of income tax on current income tax expense as the adjustment of the balance sheet liability method, temporary differences arise from the nature, analyzing the causes of temporary differences and the closing balance 、 liability impact.
Timing differences are differences in emphasis on the formation and reversal of temporary differences and emphasize the differences in content; timing differences reveal the existence of such differences in a certain period differences, temporary differences are revealed when a point on the existence of such differences than the income statement under the concept of temporary differences between the wider range of timing differences, and some permanent differences, from the tax basis of assets and liabilities and the difference between the book value of the point of view is a temporary difference, and some temporary differences in the timing of the period did not result in differences as to accept the donation of assets previously cited example, the income statement liability method under depreciation, because depreciation will result in the formation of different methods of timing differences, The balance sheet liability method, under depreciation, the temporary differences arising not only includes the timing differences, but also contains the recorded value of fixed assets are recorded and recognized the value of different tax depreciation arising from the permanent differences, therefore, deferred income tax assets or liabilities because the book value of assets or liabilities and the tax basis of assets or liabilities inconsistent, as the balance sheet items of deferred income tax asset or liability balance sheet items directly from the comparison concludes that reflect their root causes, whereas in the income statement liability method, deferred tax indirectly by the project's profit and loss account. Links to free download http://eng.hi138.com
2 、 understanding of the benefits of different income statement liability method focuses on the income statement, income statement is considered one of the most easy to understand the fiduciary responsibility of reporting, hence the "concept of the cost of income" definition of income, focused on earnings is the ratio of income and expenses . the balance sheet liability method focuses on the balance sheet, balance sheet that is most likely to provide decision-useful information reports, hence the "balance view" defined benefits.
The so-called asset-liability concept is to develop guidelines for the development of norms in certain types of transactions or matters of accounting standards, the first attempts to define and regulate transactions of this class about the measurement of assets and liabilities; then, according to the definition of assets and changes in liabilities to revenue recognized in the balance sheet under the concept of the accounting treatment of transactions and events including the identification of assets and liabilities, as well as matters related to these transactions and the assets and liabilities. Correspondingly, the revenue cost concept requires standard-setting in the standard-setting, first consider certain types of transaction-related income and expenses directly to the recognition and measurement.
Revenue cost concept, the recognition of revenue and expense must then confirm the benefits, so you can get details of the nature of income data, which detail the total revenue is undoubtedly more than a useful concept is the cost advantages of income due to income and expenses must be traced back to the original transaction or matter determined by the data, so historical cost as the cost of recognition of revenue and a more realistic choice of measurement attribute, while the revenue cost concept also has a historical cost measurement almost all the drawbacks In addition, the concept emphasizes the cost of income and expenses to income ratio, the ratio of income to determine the principle is the core principle of those who do not meet the matching requirements but business income and expenses will impact the project will serve as cross-phase of the project suspense account to the balance to go until the next accounting period and then gradually into its income statement, for example, the balance sheet in a variety of prepaid expenses 、 deferred expenditure 、 expected proceeds, which makes the balance sheet as before and after the two the transition period the income statement or intermediary, greatly reduces the usefulness of the balance sheet. 3 、 analysis of a different focus.
The income statement liability method of accounting profits and focus on analysis of the timing difference between taxable income to the income statement of income and expense items for the focus, each of recognized income and expense items in the accounting and tax law on timing differences, and these differences impact on the future as current income tax expense is adjusted its formula is as follows:
= Current income tax expense applicable to accounting profit × income tax rate + tax changes on deferred tax adjustments before then, according to the income tax expense and current tax liability of the difference between the introduction of the current period down of deferred tax assets or liabilities, the method processing of income tax from the income statement items in the order is released balance sheet items.
Attention to the balance sheet liability method of income tax asset or liability recognition and measurement; deferred income tax expense is a residual value, which is the accounting of deferred income tax assets and liabilities during the opening balance and closing balance required by the difference between, the formula is as follows:
Current income tax expense = taxes payable + current (end of deferred income tax liabilities - deferred tax liabilities, beginning of period) - (end of deferred income tax assets - beginning of deferred tax assets). The income approach is the order of items down from the launch of the balance sheet income statement items.
4 、 recognition and measurement of different addition to the temporary differences include timing differences, but also including some permanent differences. The income statement liability method, when this part do not reflect the future tax effect of permanent differences, it directly through profit or loss, without affecting the subsequent accounting period. The balance sheet liability method in dealing with this part of the permanent differences in their current generated on the recognition of deferred tax assets or deferred tax liabilities, and reversed in subsequent periods.
5 、 the presentation of financial statements in different income statement liability method using "deferred tax" concept, which represent prepaid debit balance of the tax credit balance on behalf of the tax payable, but in the balance sheet as a separate project to reflect. This confused the meaning of assets and liabilities, is not conducive to the use of the balance sheet of the enterprise's financial assessment of the situation, while the balance sheet liability method using "deferred income tax assets" and "the deferred income tax liabilities," the concept of deferred tax greatly expanded the meaning of section, and more practical significance. Income tax assets and tax liabilities as non-current assets and non-current liabilities in the balance sheet presented, this approach can clearly reflect the financial situation, more conducive to the proper business decisions. Links to free download http://eng.hi138.com