What are the changes to this year’s new accounting system?

Comparison of the differences between the new accounting standards that will be implemented on January 1, 2007 and the old version 1. "Accounting Standards for Business Enterprises - Basic Standards" (1) It is still called the basic standards and must be implemented by all enterprises. It is not used in accordance with international practice.

The term "Conceptual Framework for Financial Accounting" (CF).

(2) Accounting objectives are clarified.

The goal of financial accounting reports is to provide users of financial accounting reports with accounting information related to the company's financial status, operating results and cash flows, reflect the performance of corporate management's fiduciary responsibilities, and help users of financial accounting reports make economic decisions.

Theoretically speaking, my country's accounting objectives combine the concept of fiduciary responsibility and the concept of usefulness in decision-making.

However, my country's accounting objectives clearly put the concept of fiduciary responsibility first and emphasize the reliability of accounting information, which is somewhat different from the international emphasis on the relevance of accounting information.

(3) The general principles of accounting are deleted and replaced by quality requirements for accounting information.

The quality requirements of accounting information include eight aspects: reliability, relevance, clarity, comparability, substance over form, importance, prudence and timeliness.

(4) The accrual basis is integrated into the basic assumptions, and historical costs are reflected in the measurement of accounting elements.

(5) The definition of accounting elements complies with the provisions of the "Enterprise Financial Accounting Reporting Regulations", but the definition of income and expenses partially introduces the concept of assets and liabilities, which is mainly based on the "Framework for the Preparation of Financial Statements" of the International Accounting Standards Board (IASB)

》Related terms.

(6) Introduce the concepts of gains and losses.

At the same time, gains and losses are divided into gains and losses that are directly included in owners' equity and gains and losses that are directly included in current profits.

In theory, the former kind of gains and losses have not yet been realized in substance, while the latter kind of gains and losses have already been realized.

(7) Standardizing accounting measurement attributes for the first time.

It stipulates five measurement attributes: historical cost, replacement cost, net realizable value, present value and fair value, and emphasizes that enterprises should generally use historical cost when making accounting measurements.

The International Accounting Standards Board's "Framework for the Preparation of Financial Statements" stipulates that the measurement attributes of financial statements include historical cost, current cost, realizable value and present value.

(8) The requirement that accounting records must be written in Chinese and that capital expenditures and revenue expenditures be divided is cancelled.

2. "Accounting Standards for Business Enterprises No. 1 - Inventories" (1) Borrowing costs incurred for eligible inventories can be capitalized.

This provision is reflected in the "Accounting Standards for Business Enterprises No. 17 - Borrowing Costs", that is, the scope of capitalization of borrowing costs is expanded to certain inventory items, that is, those inventories that take a long time to reach a salable state (such as

shipyards).

Because the shipyard cannot complete inventory such as large ships with its own funds alone, it must resort to bank loans. And the bank loans obtained by enterprises cannot distinguish between specialized loans and non-specialized loans. The original guidelines only allow special loans.

The provisions on capitalization of borrowing costs are not reasonable enough.

(2) The last-in-first-out method was cancelled.

One is because the improved "International Accounting Standards No. 2 - Inventories" cancels the LIFO method; the other is because the LIFO method cannot reflect the true situation of inventory circulation.

(3) The moving weighted average method is cancelled.

Because the moving weighted average method is essentially a form of the weighted average method, there is no moving weighted average method in international accounting standards.

(4) It is clarified that low-value consumables and packaging materials are amortized using the one-time write-off method or the 50-50 amortization method.

3. "Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment" (1) Narrowed the scope of application.

Compared with the original "Accounting Standards for Business Enterprises - Investment", this Standard only regulates the accounting of long-term equity investments. Short-term investments and long-term debt investments are regulated by "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments". This standard

Fully consistent with international accounting standards.

(2) For long-term equity investments formed by business mergers, different methods are used to determine the investment cost for business mergers under the same control and business mergers not under the same control. This is mainly in line with "Accounting Standards for Business Enterprises No. 20 -

Business Merger" coordination.

(3) The scope of application of cost method and equity method has been re-standardized.

The cost method is applicable to long-term equity investments in which the investing enterprise can exercise control over the invested unit, and the equity method is applicable to long-term equity investments in which the investing enterprise does not have exclusive control or significant influence on the invested unit, and there is no quotation in the active market and the fair value cannot be determined.

For long-term equity investments that can be measured reliably, the above provisions are completely consistent with international accounting standards.

That is to say, for subsidiaries included in the scope of consolidation, the parent company should use the cost method to account for it. When preparing consolidated financial statements, it should make adjustments according to the equity method, which is commonly known as the "on-balance sheet equity method", which is completely different from the original method used in my country. "On-book equity method".

Regarding changes in the scope of application of the cost method and equity method, it is consistent with relevant international accounting standards.

(4) The long-term equity investment balance was cancelled.