Difference and connection between original replacement cost and renewal replacement cost

The relationship between the original replacement cost and the economic basis is as follows:

The original replacement cost is an integral part of the updated replacement cost: it is an economic management work to organize the financial activities of the enterprise and deal with the financial relations in accordance with the financial regulations and systems and the principles of the management level. Organic composition of capital is the organization of enterprise financial activities, financial relations of an economic management.

The original replacement cost is centered on the renewal of the replacement cost, the original replacement cost of the enterprise management of the funds needed to raise, put, use and distribution, as well as throughout the process of decision-making planning, budgetary control, analysis and evaluation of the overall management.

The original replacement cost of the control of the decision must be updated replacement cost elements as the center. The original replacement cost functions include financial forecasting, financial decision-making, financial planning, financial control and financial analysis and evaluation. Among them, financial decision-making and financial control is in a key position, related to the success or failure of the enterprise,

On the one hand, the employer is employed by the employer, engaged in the work for wages, on the other hand, is the employer of labor business owners, business operation of the person in charge of or on behalf of the owner of the business of the person to deal with the labor affairs, the relationship between each other that is the relationship between labor and employer. Good or bad labor-management relations have a bearing on the order of production, social stability and national security.

The difference between the original replacement cost and the renewed replacement cost is as follows:

1. Different treatment

Renewed replacement cost should be calculated on an annual basis, and prepaid in monthly or quarterly installments. At the end of each month, the enterprise shall transfer the balance of the cost and tax accounts to the debit side of the "profit for the year" account, and the balance of the income accounts to the credit side of the "profit for the year" account.

Then calculate the difference between the current period's debit and credit balances in the "profit for the year" account. The credit balance is the total profit realized by the enterprise that is the pre-tax accounting profit, and the debit balance is the total loss incurred by the enterprise.

And the original replacement cost that the primary purpose of income tax accounting should be to recognize and measure the impact of accounting and tax differences on the inflow or outflow of future economic benefits to the enterprise, the income tax accounting affects the assets and liabilities of the enterprise in the first place. The income statement debt approach starts from the view of income and expenses, and considers that the first consideration should be the direct recognition of income and expenses related to the transaction or event,

measuring the enterprise's income from the direct matching of income and expenses.

2, including the scope of the different

Upgrade replacement cost includes: administrative and technical personnel, material procurement, storage and driving a variety of machinery, vehicles, materials before the arrival of the site warehouse handling and loading workers, full-time trade union personnel, medical personnel and other personnel by the construction management fees or non-operating expenses of the salaries of the personnel.

And the original replacement cost includes: income derived from individuals engaged in design, decoration, installation, graphic laboratory, testing, medical, legal, accounting, consulting, lecturing, journalism, broadcasting, translation, auditing, painting, calligraphy, sculpture, film and television, sound recording, video recording, performances, shows, advertisements, exhibitions, technical services, referral services, brokerage services, escrow services, and other labor services.

3. Different calculation methods

The formula for updating the replacement cost is:

Net income from operations = income from operations - operating expenses - depreciation of productive fixed assets - production tax +

Net income from renting out houses, net income from renting out other assets, and depreciated net rent from owned housing. Net income from property excludes proceeds from premiums on transfer of ownership of assets.

Net Transfer Income The formula for calculating net transfer income is: Net Transfer Income = Transferred Income - Transferred Expenditure

And the formula for calculating the original replacement cost is expressed as: Real Growth Rate of Per Capita Disposable Income = (Per Capita Disposable Income of the Reporting Period / Per Capita Disposable Income of the Base Period)/Consumer Price Index -100%.

Baidu Encyclopedia - Updated Replacement Cost

Baidu Encyclopedia - Replacement Cost