directly affects the fair expression of the enterprise's financial position and results of operations, and at the same time is closely related to the return of funds and social integrity, etc. Therefore, it is important to review the relevant provisions of the current
accounting system to standardize the accounting, in conjunction with the characteristics of the economic transition period.accounting system's relevant provisions are of great significance to standardize accounting.
Keywords: accounts receivable accounting
0Introduction
According to the concept of modern enterprise system, combined with the buyer's market-oriented economic environment, enterprises
in order to sell their products as soon as possible, it is inevitable that they take the means of lowering the credit standards
and conditions in order to carry out the promotions. However, the historical legacy of "triangular debt", "polygonal
debt" phenomenon and poor social integrity, and make enterprises face a large number of accounts receivable
because of difficulties in recovering and into the "At the same time, users of the information are disappointed by the lack of cash to support the results of operations, which in turn shakes their confidence in the information provided in the financial statements
. In order to ensure the realization of assets and avoid overestimation of assets and profits, the current accounting system makes full use of the principle of prudence to regulate, and the provision for impairment can also be used as a tool for management to manipulate profits
. The reason for this is that in addition to the information provider itself, there is also an ambiguity
in the institutional norms
. This article only from the accounting point of view.
1 Accounting for Bad Debts in Enterprises
1.1 Comparison of Accounting Methods for Bad Debt ProvisionThe so-called bad debts refer to uncollectible receivables
accounts. The loss incurred due to bad debts is called bad debt loss. How to account for bad debt losses, is it
recognized in the bad debt period, or in the accounts receivable to be estimated in the period of recognition,
the formation of direct write-off method and allowance method. The current system standardizes the use of the allowance method,
which is consistent with the accrual and matching principles and facilitates the comparability of information.
From the accounting point of view, accounts receivable generally include the extraction of bad debt provision, occurrence of
bad debt, recognition of bad debt and recovery, make up or write off the bad debt provision and so on. Except for the percentage of sales
method, the bad debt provision made by the other three methods generally maintains
a certain ratio with the ending receivables balance, which is equivalent to the provision by total, category and individual, respectively. In terms of the closeness of the allowance for bad debts
to the dependent receivables, except for the individual recognition method, the allowance for bad debts under the remaining methods
cannot be aligned with the receivables.
1.2 Methods Applicable to the Provision for Bad Debts in Full The current accounting system provides
criteria for the recognition of bad debts and also suggests several situations in which the provision for bad debts cannot be made in full. However,
recognizing bad debts and making full provision for bad debts are not the same concept. The former is a judgmental act under any
method, while the latter is a question of how much the full amount of bad debt provision is,
and only has practical significance under the individual determination method. The system either confuses the two,
or implies that the individualized approach must be used for bad debt provisioning.
1.3 Carrying value of assigned receivablesWhether an enterprise uses receivables to
finance or restructure a debt, the system suggests that its carrying value be carried forward. The "book value" of an account receivable is the difference between its balance and the balance of the "bad debt provision". Since the balance of "bad debt
provision" has different meanings under different accrual methods, and not all of them are the same as accounts receivable,
this gives rise to the following question: whether it is necessary to carry forward the book value, and if it is necessary to carry forward, of course, according to the principle of retroactivity is not impossible, but it is obvious that it is against the principle of substance over form. It is against the principle of substance over form
. If it is not necessary to carry forward, the negligence provided for in the system is not appropriate.
1.4 Provisioning and reversal of secret provisions are not in accordance with the scope or criteria set out in the system
Provisioning for bad debts is known as secret provisioning. The reason why companies make secret provisions is that
by making them and writing them off at a later date they can break the accounting period assumptions and thus reconcile the profit
of each period. The problem is that the percentage of bad debt provisioning is only God knows what is correct. The state can't
make the mistake of one-size-fits-all in the past, and the accounting services company has more in mind
than the company does in terms of accrual ratios? At the end of the day, the accrual rate should be a spaced value in a certain region, never an absolute
right value, so where does the rate set out in the system come into play? On the other hand, if the enterprise accruals outrageous,
it will be considered that the provision of secret provision, but also nothing more than as a correction of accounting errors, if it can not be found
present may be disclosed to the public as the correct information.
2 Financing of accounts receivable
The current accounting system, the financing of accounts receivable, from the sale, pledge borrowing and discount
Currently three aspects to be introduced, and will be the sale of parallel definition of financing, resulting in many of the concepts of the
Abstruse and difficult to understand, the accounting provisions of the inconsistency.
2.1 The appropriateness of the concept of sale On the surface, accounts receivable as a transfer of assets
Ownership and sales are similar, but the accounting "income" standard does not include the sale of accounts receivable
Sale. Generally, a sale requires recognition of revenue, carrying costs, and calculation of profit and loss, which are not available in the accounts receivable
carryover, and are not even considered a deemed sale. On the other hand, accounts receivable
is itself a monetary fund. When traded with other assets, they are often measured as a yardstick, so it would be unfair to call them a sale and thus recognize a gain or loss. It would be more appropriate to refer to it as a transfer.
Because calling it a transfer is more compatible with the transfer of risks and rewards.
2.2 Whether sale and financing are parallel or inclusive, the purpose of transferring accounts receivable, regardless of the method of transfer, is to obtain funds in order to accelerate the turnover of funds. From the point of view of obtaining funds
, sale (assuming it is valid) is just a form of financing. The two are not
not parallel but inclusive and inclusive
2.3 The connotation of discounting Discounting for accounting purposes used to refer only to the act of financing outstanding commercial bills of exchange
through banks. The current system has expanded its scope to include the discounting of accounts receivable
. According to whether the discounting bank has recourse after discounting, discounting is divided into two kinds of discounting with
recourse and without recourse. Obviously, discounting is also
a way of financing. Discounting with and without recourse is essentially the same as the assignment of accounts receivable
.
2.4Reconstructing the conceptual system of accounts receivable financingThe act of obtaining funds by transferring and pledging accounts receivable
is financing. Financing includes transfer and pledge. Assignment is further divided into real
quality assignment (transfer of risk and reward) and formal assignment (no transfer of risk and reward). Accounting
accounting can be based on the principle of substance over form, divided into two categories, one is the transfer of ownership
accounting, and the other is the transfer of non-ownership accounting, the former includes the transfer of the substance and without recourse
discounting, and the latter includes non-substantial transfers, pledge borrowing, and discounting with recourse.
2.5 Substantial transfer is recognized as profit or loss or as financial expenses according to the current system,
Substantial transfer to be recognized as profit or loss as non-operating profit or loss, I beg to differ. Accounts receivable of the original
creation, necessarily as operating income to be measured in monetary terms, now due to the recovery of accounts receivable
reduction, can only be recognized as the original operating income offset, can not be used as non-operating
expenditure, otherwise it is clearly contrary to the principle of proportionality. From the point of view of accounts receivable financing,
it is in essence nothing more than a financial activity. It seems more reasonable to treat it as a financial management expense. Similarly, under the enterprise
cash discount, the accounting system provides for the total method of accounting, because of the purchasing unit discount period payment
and less cash received as a finance charge recognized, and the substance of the transfer is not different.
Enterprise accounts receivable is one of the main liquid assets of the enterprise, and its management status directly affects
The quality of enterprise assets and asset operating capacity. Currently, there are a large number of accounts receivable, poor liquidity, slow turnover and other problems, implying a large number of bad debt loss
loss, affecting the overall quality of the enterprise assets, resulting in the enterprise virtual profit and loss. From the perspective of financial management
starting from the establishment of accounts receivable management system, the establishment of accounts receivable collection responsibility system, the establishment of
establishment of annual inventory system of accounts receivable, the establishment of bad debt write-off management system, strict bad debt loss
internal processing procedures and other related measures and regulations, from the system level, the level of responsibility
to play the role of strengthening management. The role. With this matching accounting, especially accounting recognition and
measurement must also be standardized. In my opinion, in-depth analysis of receivables bad debt accounting principles
rationale and methods, not only is the requirement of the presentation of asset realizability, but also involves the corresponding standards
connections, such as debt restructuring; receivables transfer financing accounting boundaries in the concept of factoring, not only
favorable to regulate the concept of the current financial system is mixed, the inclusion of the relationship between the lack of clarity of the systematic obstacles
Hindered, but also can integrate social resources, solve the enterprise financing, expand the financial institutions business paradigm
Surrounding, reduce the risk of bad debt, create social integrity.
References:
[1] Li Jian. Comparison of Various Methods of Provisioning for Bad Debts[J]. Shanghai Accounting, 2002(6).
[2]Zhao Junling. On the Scope and Method of Bad Debt Provisioning by Enterprises[J]. Finance and Finance, 2001
(12).
[3]Chen Hua. New Exploration on the Method of Provisioning for Bad Debts---Double Factor Analysis Method[J]. Journal of Nanjing Institute of Economics
, 2002(3).
[4]. Li Yimin, Lu Xiaohui. Considerations on Accounts Receivable Accounting [J] Business Accounting, 2008(3).
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