Usage And Accounting Treatment Of Other Comprehensive Income Subjects

The combined income gross project reflects the aggregate amount of net profit and other comprehensive income.

In the balance sheet, "other comprehensive income" has not been regarded as a separate subject before, but has been included in the capital reserve, and now it is a separate subject, so that it can be distinguished from capital reserve.

This way of accounting helps to make the accounting content of capital surplus clear.

The content of capital accumulation is mainly accounting for the part of shareholders' capital investment, which is confused with other comprehensive income in one subject, and will not be easy for users to understand and analyze.

A project that is realized but temporarily can not be included in the current profit or expense.

Generally speaking, capital surplus is a fact that has been established and will not be pferred again during the subsequent period.

Other comprehensive income is similar to a pitional subject and needs to be pferred in the future.

(1) re calculate the changes caused by net liabilities or net assets of the benefit plan.

According to the accounting standards for Enterprises No. ninth - employees' remuneration, enterprises with set off benefits in the form of beneficial plans shall include the changes caused by the net liabilities or net assets that are remeasured and set to the benefit plan into other comprehensive income, and shall not be allowed to be pferred back to profits or losses during the subsequent accounting period.

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Termination of the scheme means that the scheme no longer exists, that is, the enterprise has lifted all future obligations arising from the plan.

(2) the share that is accounted for by the equity method in the other comprehensive income changes that cannot be reclassified into profits and losses by the invested unit.

According to "accounting standards for Enterprises No. second - long-term equity investment", after obtaining long-term equity investments, investors should confirm other comprehensive income according to the share of other comprehensive income of the invested units that should be or should be shared, and adjust the book value of long-term equity investment.

In determining the share of other comprehensive income of the invested entity, the nature of the share shall be determined by the nature of the other comprehensive income of the invested entity, that is, if the other comprehensive income of the invested unit belongs to the category of "no longer classified profits and losses" in the subsequent accounting period, the share recognized by the investor shall also belong to the category of "no reclassification of profits and gains" after the accounting period.

When terminating the investment to the invested entity, the part that is originally included in the other comprehensive income shall be pferred to the undistributed profit within the scope of rights and interests.

1. changes in other rights and interests of long-term equity investments under equity method.

In accordance with the long-term equity investment criteria, the equity method is used to calculate the uncontrolled but heavily affected investment entities.

After obtaining long-term equity investment, the investor should confirm other comprehensive income according to the share of other comprehensive income of the invested unit that should be or should be shared, and adjust the book value of long-term equity investment.

If the other comprehensive income of the invested unit belongs to the category of "after the accounting period will be classified into profit and loss" when meeting the prescribed conditions, the share recognized by the investor is also "classified into profit and loss" category after the accounting period meets the specified conditions.

When terminating the investment in the invested entity, the part that is originally included in the other comprehensive income shall be pferred to relevant profits and losses within the scope of rights and interests.

2. profits or losses arising from the change in the fair value of the available financial assets and the profits or losses from the holding to maturity investments are classified as the sale of financial assets.

According to the accounting standards for Enterprises No. twenty-second - confirmation and measurement of financial instruments, gains or losses arising from the change of fair value of the sale of financial assets shall be directly included in the owner's equity (his comprehensive income) except the impairment loss and the exchange difference between the foreign currency and the monetary assets. When the financial asset is terminated, it will be included in the profits and losses of the current period. According to the financial instruments recognition and measurement criteria, the holding to maturity investment will be classified as the available for sale financial assets. On the date of reclassification, the difference between the book value of the investment and its fair value will be included in other comprehensive income and pferred to the current profits and losses when the sale of the financial asset is impaired or terminated.

3. the portion of gains or losses arising from the cash flow hedging instrument is part of the effective hedging.

According to the accounting standards for Enterprises No. fourth hedging, part of the cash flow hedging gains or losses that belong to effective hedging should be directly recognized as other comprehensive income. Those that belong to the invalid hedging should be included in the current profits and losses.

For the former, the hedging standard stipulates that under certain conditions, the gains or losses of hedging instruments that are directly included in owners' equity should be pferred out into the current profits and losses.

4. conversion of foreign currency financial statements.

According to the accounting standards for Enterprises No. nineteenth - foreign currency conversion, when the enterprise plations the financial statements of overseas operations, it should list the difference between the foreign currency financial statements and the other comprehensive income. When dealing with overseas operations, the enterprise should convert the difference between the foreign currency statements listed in the balance sheet of the owner's equity item and those related to the overseas operation, pfer from owner's equity items to the disposal of current profits and losses, and partially dispose of overseas operations.

An investment unit is a subsidiary of foreign currency used as a bookkeeping standard currency.

In the case of compiling the consolidated financial statements, it should be listed separately as the "balance of foreign currency statements" in the preparation of the consolidated financial statements.

Investment units may dispose of their interests in overseas operations by selling, liquidating, returning shareholders or giving up all or part of their rights and interests.

The enterprise shall, within the current period of disposing of overseas operations, convert the foreign currency statements that have been included in the financial statements of the consolidated financial statements into the difference between the foreign currency statements and the relevant parts of the overseas operation, and pfer them from the owner's equity items to the current profits and losses.

5. other items according to the relevant accounting standards.

For example, according to the "accounting standards for enterprises third, investment real estate", the real estate or the real estate that is used as a stock is converted into a fair value model, and the investment real estate will be included in other comprehensive income in the fair value of the conversion day than the book value. When the real estate is disposed of, the part will be pferred to the current profits and losses.

Other comprehensive income as a gain or loss that the enterprise does not include in the current profits and losses is different from that in the tax law.

The tax law stipulates that if the accounting treatment is inconsistent with the tax law, the tax adjustment should be made according to the tax law on the basis of the pre tax profit (gross profit) of the enterprise.

In accounting, where temporary differences are stipulated, the deferred income tax assets or deferred income tax liabilities shall be recognized and pferred back to the standards.

Enterprises shall generate profits or losses that are not recognized in the current profits or losses according to the regulations. Whether they can be reclassified into profits or losses after the accounting period, they should confirm the other comprehensive income while confirming the deferred income tax liabilities or assets, and return them in accordance with the relevant accounting standards during the subsequent accounting period.

The specific method is to recognize the deferred income tax liabilities according to the expected tax rate when the profits are not included in the current profits and losses. If the losses are not included in the current profits and losses, the deferred income tax assets will be recognized at the time of occurrence, according to the expected tax rate, unless the operating conditions of the enterprises do not have the conditions for confirming the deferred income tax assets.

When other comprehensive income is generated, no tax adjustment is required, and the tax adjustment will be made when the related assets are terminated.

For specific tax matters, the matching principle should be followed.

For other comprehensive income that can not be classified into profits and losses in the future period, the deferred income tax shall be included in other comprehensive income when it is recognized, and it will not be included in the income tax expense when it is turned back, but will be included in the undistributed profit directly.

For other comprehensive income that can be classified into profits and losses in the future period, the deferred income tax will be included in other comprehensive income when confirmed. When the relevant profits and losses are realized, the deferred income tax assets or liabilities will be turned back, and it will be recognized as the current income tax expense.

For example, at present, the income of our country

No provision has yet been made for the taxation of the changes in the net liabilities or net assets caused by the benefit plan.

However, according to the basic principles of the tax law, the salary payable for employees can only be deducted before the actual payment is made.

Therefore, when confirming the payable employees' remuneration, deferred income tax assets or liabilities should be recognized at the same time.

As the subsequent accounting period is not allowed to be pferred back to profit and loss, the return of deferred income tax assets or liabilities is not included in the income tax expense, but is directly included in the undistributed profit.

In other words, the fair value change of the sale of financial assets is not directly recognized as profit or loss in the current period of change. Instead, the change of fair value is included in other comprehensive income. At the same time, the deferred income tax liabilities of the fair value change gains are recognized. The deferred income tax assets of the loss of fair value are recognized as the other comprehensive income, and the net income after tax is reflected in the income statement.

Only when the disposal of the available financial assets is disposed will it be returned to the recognized deferred income tax assets or liabilities, which is recognized as the current income tax expense.

Similar to the accounting principles of other subjects, the other comprehensive income reflected in the balance sheet is the balance, while the other comprehensive income in the profit statement reflects the amount.

Two the relationship between the tables is reflected as follows: the other comprehensive income period of the balance sheet plus profit statement. The net income of other comprehensive income after tax is attributable to the parent company = the end of other comprehensive income of the balance sheet.

The net income of other consolidated income is the net part of the net income of other comprehensive income, which belongs to the parent company and the net income of other comprehensive income after tax is attributable to minority shareholders.

The calculation of other comprehensive income does not affect the specific cash flow, so it is not reflected in the main table of the cash flow statement.

However, it should be noted that in the supplementary information of the cash flow statement, when deferred income tax is adjusted, the deferred income tax changes recognized by other comprehensive income should be eliminated.

The reason is that the deferred income tax changes in this part are related to other comprehensive income and are not included in profit and loss. Therefore, they do not belong to the content of net profit.

In the adjustment of supplementary information, it is necessary to grasp such a principle. Only when the net profit is affected, it does not affect the contents of the cash flow of business activities.

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