Public hospitals overall relocation, land costs should be included in what accounting account

According to the "Ministry of Finance on the enterprise to receive the government allocated to the relocation of compensation for the financial treatment of the notice" (finance - enterprise [2005] No. 123) the provisions of the document, the enterprise received the government allocated to the relocation of compensation for the accounting as a special payable; relocation of compensation for interest on deposits, and transferred to the special payable. Losses or expenses incurred by an enterprise in the course of relocation and reconstruction are accounted for by distinguishing the following four situations. First, the fixed assets sold, scrapped or destroyed due to relocation are accounted for as fixed asset liquidation, and their net losses are written off as special accounts payable; second, the costs incurred for dismantling, transporting, re-installing and debugging machinery and equipment are directly written off as special accounts payable; third, the land use rights of the enterprise that are lost due to relocation and originally accounted for as an asset are directly written off as special accounts payable; fourth, the costs and expenses incurred for relocating the employees are directly written off as special accounts payable; and the interest on the deposit of the relocation compensation is added to the special accounts payable. The document also stipulates that the expenses for the relocation of enterprises shall be directly written off as special accounts payable. At the same time, the document also stipulates that after the end of the relocation of enterprises, special accounts payable, if any balance, need to be increased by the capital reserve and all shareholders **** enjoy; special accounts payable, if any shortfall, will be included in the current profit and loss.

It should be noted that the above provisions of the document only clarify the accounting treatment of the enterprise from the government to obtain the relocation compensation, but not clear enterprise from the government to grant... The party that obtains the compensation fee for the right to use the land, as well as the transfer of the right to use the land and obtain the compensation fee should be how to carry out the accounting treatment. In the author's opinion, the compensation fee obtained by the enterprise from the enterprise which obtained the land use right by way of grant should also belong to the compensation payment obtained from the government, and should also be handled in accordance with the above provisions; for the compensation fee obtained by transferring the land use right, it should be accounted for in accordance with the relevant provisions of the transfer of intangible assets.

Processed in accordance with the provisions of the new accounting standards:

The "Interpretation of Enterprise Accounting Standards No. 3" stipulates that enterprises relocated due to the overall planning of towns and cities, the construction of reservoirs, shantytown renovation, subsidence zone management and other public **** interests, received from the government from the financial budget directly allocated to the compensation for the relocation of the money should be handled as a special accounts payable. Among them, those belonging to the compensation for the loss of fixed assets and intangible assets incurred by the enterprise in the process of relocation and reconstruction, related cost expenses, loss of work stoppage and new assets to be constructed after relocation shall be transferred from the special accounts payable to deferred income and be accounted for in accordance with Accounting Standard for Business Enterprises No. 16 - Government Grants. Any balance of the relocation compensation obtained by the enterprise after deducting the amount transferred to deferred income shall be treated as capital surplus. Relocation compensation payments received by an enterprise other than those specified above shall be accounted for in accordance with Accounting Standard No. 4, "Fixed Assets" and Accounting Standard No. 16, "Government Grants".

According to the above provisions, only the relocation compensation payments directly allocated by the government from the financial budget need to be firstly accounted for through the "special accounts payable", and then transferred to "deferred income" and "capital surplus" from the "special accounts payable". "The relocation compensation obtained from other sources is not accounted for through "special accounts payable", but should be handled in accordance with the transfer of fixed assets or intangible assets. Similarly, the compensation fees obtained from the party that obtained the land use rights due to the government's resumption of land use rights should be treated as financial resources obtained from the government.