Article 1 In order to strengthen the unit's financial management work, according to the "People's Republic of China *** and the State Accounting Law", "Small Business Accounting System", "Enterprise Accounting System", combined with the characteristics of the unit's production and operation and management requirements, the development of this system.
Article 2 The unit carries out independent accounting, is responsible for its own profit and loss, in accordance with the principle of the accrual system, the actual reflection of the financial situation and operating results, pay taxes in accordance with the law, and accept the inspection and supervision of the tax authorities.
Article 3: Owners' equity includes paid-in capital, capital surplus, surplus reserves, profit for the year and profit distribution. The surplus is used to make up for losses or to increase capital.
Article 4 Liabilities are divided into current and long-term liabilities. Current liabilities include short-term loans, notes payable, accounts payable, other accounts payable, wages payable, benefits payable, taxes payable, other payables, profits payable, value of assets to be transferred, and accrued expenses.
If there is a payable that really cannot be paid due to creditors, it is transferred to non-operating income.
Benefits payable is 14% of the total taxable wages, labor union expenses and employee education expenses are 2% and 1.5% respectively.
Withholding expenses include rent, insurance premiums and interest on short-term loans.
Article 5: Current assets include money funds, accounts receivable, bad debt provisions, other receivables, inventories, amortized expenses and so on.
At the end of the year, a provision for bad debts is made based on 1 % of the balance of accounts receivable, and a provision for decline in value of inventories is made based on 0.5 % of the closing balance of inventories.
Inventories include substances in transit, materials, low-value consumables, inventory goods, commissioned processing substances, and commissioned goods for sale. Inventories are accounted for at actual cost, and the issue of inventories is carried at cost by the moving average method. Low-value consumable goods are charged to cost at one time after they are received (generally, a larger amount is charged to amortized cost, which is accounted for by the 50-50 amortization method).
Article 6 Non-current assets include fixed assets, construction in progress, intangible assets, deferred assets and so on. Houses, buildings and major equipment, apparatus and tools for production and operation purchased and constructed by the unit with a service life of more than one year and non-production and operation major equipment, apparatus and tools with a unit price of more than RMB 2,000 and a service life of more than two years are classified as fixed assets. Fixed assets are depreciated using the straight-line method (average life method), and the net value of fixed assets is determined at 5% of the original value of fixed assets. Depreciable lives are determined as follows:
(1) 30 years for houses and buildings;
(2) 10 years for trains, ships, machines, machinery and other production equipment;
(3) 5 years for electronic equipment and means of transportation other than trains and ships, as well as appliances, tools and furniture related to production and business operations;
(Fixed asset repair costs) Directly included in the cost in the period of occurrence, repair costs account for more than 20% of the original value of fixed assets or repairs can extend the useful life of more than two years after repair and repairs for new purposes, is considered to be fixed asset improvement expenditures. Fixed asset improvement expenditure increases the value of fixed assets accordingly or is treated as deferred assets.)
Deferred assets are amortized on a straight-line basis over five years, and intangible assets are amortized evenly over 50 years.
The inventory and fixed assets of the enterprise are regularly inventoried and checked, and the net gain or loss of the inventory is reported to the tax authorities for approval and recorded as administrative expenses or non-operating income and expenditure.
Article VII of the cost category (industrial enterprises), including production costs, manufacturing costs, production costs incurred by the enterprise according to the product category and cost items are pooled; manufacturing costs are pooled according to the project and then allocated in accordance with the standard of sales revenues are included in the cost.
Article VIII of the profit and loss category includes main business income, main business costs, main business taxes and surcharges, other business income, other business expenses, operating expenses, administrative expenses, financial expenses, non-operating expenses and other subjects.
Main business income accounts for the revenue generated from the sale of products (commodities), the provision of industrial labor services, etc., and set up a detailed account according to the category of products (commodities). Revenue from the main business is recognized when the enterprise issues products (commodities), provides labor services, and receives the price or obtains the documents to claim the price.
The cost of main business accounts for the actual cost of products (commodities) sold and industrial services provided by the enterprise, and the ledger is set up according to the category of products (commodities).
Operating expenses account for the costs incurred by the enterprise in the process of selling products (commodities), including transportation, loading and unloading costs, packaging costs, insurance costs, exhibition costs, advertising costs, business promotion costs, etc., and set up a detailed account by expense items.
Taxes and surcharges on main business include business tax, urban construction tax and education surcharge paid in accordance with the tax law.
Administrative expenses include salaries and benefits of administrative personnel, taxes and fees directly charged to administrative expenses, business entertainment expenses, depreciation, employee education expenses, labor union funds, labor insurance premiums, travel expenses, meeting expenses, board of directors' fees, legal, financial, data processing and accounting services costs. Bad debt losses incurred by an enterprise in excess of the provision for bad debts made in accordance with the approval of the tax authorities are charged directly to the current period's administrative expenses, and the recognition of all bad debts is reported to the tax authorities for approval in accordance with the requirements of the tax law. The expenses incurred by the enterprise personnel on business trips such as transportation, airplanes, accommodation, etc. are reimbursed with valid legal certificates after signing, and the business trip subsidy is issued at RMB 20 per day in the city, RMB 30 per day outside the city and the province, RMB 50 per day outside the province and RMB 60 per day in the Special Administrative Region.
Out-of-business income and expenditure refers to the income and expenditure not directly related to the production and operation of the enterprise, including asset losses and extraordinary losses.
Other business income and expenditure refers to the operating income and expenditure other than the sales (business) of the main products (commodities).
Article 9 Profit is the net profit of a certain period of time after deducting costs, expenses and taxes, and after corresponding adjustments in accordance with the provisions of the national tax law, income tax shall be paid in accordance with the law, and income tax shall be accounted for by the tax payable method. Profit after the payment of income tax is firstly used to make up for the losses of previous years, then 10% of the profit after the deduction of the preceding item is withdrawn from the surplus reserve, and then distributed to investors.
This system shall be implemented from January, of the year.