Scope, application sequence and function of five certificates
"Five Certificates" include construction land planning permit, construction project planning permit, commencement permit, state-owned land use permit and commercial housing sales permit (commercial housing pre-sale permit).
The original bid for the project is a planning permit for construction land, which strictly limits the scope, boundary and area of land use.
The second bid section is the Construction Project Planning Permit, which defines the functional categories of buildings built on this planned plot, belonging to businesses, factories, houses, apartments, etc.
The third bid is a "construction permit", which is an application for legal construction.
The fourth bid is the "State-owned Land Use Certificate", which is a document that developers spend more, and developers have to pay the corresponding state-owned land use fees to the state. Whether the house has property rights depends on this certificate. The service life of state-owned land for ordinary houses is 70 years.
The final bid is the commercial housing sales license, and the commercial housing with this license is the commercial housing that can be legally bought and sold. It is a house that developers can legally buy and sell after paying land use fees.
2. Several issues that should be focused on and the corresponding audit evidence.
(1) Income is defined in the Accounting Standards for Business Enterprises-Income, and the particularity of real estate should be considered. The commodities provided by real estate development enterprises are buildings such as land or houses. When real estate development enterprises sell goods, especially houses, they often take the form of bank mortgage, that is, buyers only need to pay 20% or more of the purchase price, and the rest is provided by mortgage banks. According to the agreement reached with the bank, property buyers will regularly repay the loan principal and interest to the bank in the next few years. In general, revenue is recognized when the customer completes the bank mortgage and receives the mortgage payment. However, according to the different management requirements of enterprises, many real estate development enterprises now confirm their income when they receive the down payment, and some have not yet completed the mortgage procedures. However, in the accounting of accounts receivable, especially for real estate companies with year-end promotion, a large number of accounts receivable will be formed in the annual balance sheet.
Audit evidence collection:
(1) Ask for the pre-sale permit of commercial housing to see whether the commercial housing that the enterprise has sold and confirmed its income is on the pre-sale permit of commercial housing.
(2) Ask for the sales list provided by the enterprise, compare it with the statistical table of housing sales contracts of the sales department, and take a certain sample to see if there is any difference in the amount.
(3) Spot-check some purchase contracts, especially the provisions on the delivery time and the time limit for handling real estate licenses and land use certificates. Pay attention to the turnkey procedures and the check-in procedures of customers, and check some information about the owner's check-in.
(4) Obtain the settlement statistics of the sold buildings from the sales agent, and compare them with the subscription book and the enterprise sales list to see if they are consistent.
(5) Ask the property management company for the collection statistics of the property management fees of the sold and unsold houses. Spot-check the sold commercial houses to see the occupancy of the owners, and make an inventory of unsold houses. At the same time, the sales progress of the sales office can be combined to judge the sales situation of the developed commercial housing.
(6) Pay attention to the collection of accounts receivable after the balance sheet date, and analyze the aging of accounts receivable, so as to judge whether there is any false income in the enterprise, especially the customers who have not completed the mortgage for a long time.
(II) Transfer of cost of finished products Real estate development enterprises, especially large real estate enterprises, are often inconsistent with the book cost due to the long development cycle. If the cost of finished products is transferred according to the book cost, there will inevitably be less transfer costs; Now the development of commercial housing is often divided into two parts, above ground and underground, which is also the main tool for developers to adjust profits. Enterprises often divide the cost of real estate into above-ground and underground parts according to the audit of external project final accounts, and cut them off artificially, so that the cost of underground foundation part is completely borne by underground products. The cost of the above-ground part has dropped sharply, resulting in the serious inaccuracy of the carried-over main business cost. There are many water tanks, which enterprises can't sell, as the base of cost allocation to achieve the purpose of reducing costs.
Audit evidence collection:
(1) Analyze whether there are large prepayments in the book. For real estate enterprises, prepayments are mostly a part of development costs, but in order to reduce costs, enterprises often pay prepayments on the pretext of unsettled accounts.
(2) Ask the developer for complete budget data and major change data, ask the engineering department for the project completion progress report, ask the contract management department for the contract signed between the enterprise and the developer, and analyze whether the developer has fully estimated the development cost of commercial housing and the corresponding project payment payable to the construction contractor.
(3) If the project has been completed, the settlement data submitted by the constructor shall be obtained. Enterprises often do not record the reasonably estimated variable costs, and then make adjustments after the final accounts come out. This practice can actually be used to adjust profits and reduce liabilities.
(4) Obtain the enterprise cost carry-forward table and check whether the carry-forward method adopted is reasonable. Some enterprises settle accounts according to the average cost, but what they actually sell is income, which leads to a serious mismatch between income and cost. Pay attention to whether the cost carry-forward of the self-occupied floor is the same as other sales parts. Many enterprises carry forward the cost of their own floors according to the average cost, and the sales part is in accordance with the established distribution method.
(5) Real estate companies can only ask the general contractor about the settlement project payment paid by the developer to the construction unit as of the balance sheet date.
(3) Taxes and fees The business tax and income tax of real estate companies are often collected in advance according to a certain proportion of the advance payment. Calculate the tax payable of the balance of accounts received in advance, and compare it with the tax payable of prepaid expenses to calculate whether to deduct less tax. According to the consistent practice of income tax collection of real estate development enterprises in China, tax authorities generally estimate income tax according to the advance payment of housing sales. At the end of the year, according to the audit report of certified public accountants and the audited net profit, the actual income tax payable is calculated at a certain tax rate. Therefore, whether the sales cost carry-forward of completed commercial housing is accurate has a great influence on the calculation of enterprise income tax and net profit, and the amount of cost carry-forward often becomes a means for listed companies to manipulate profits.
Real estate occupied by real estate companies often do not carry forward fixed assets, but are still accounted for in the development of products, excluding depreciation, business tax and property tax payable according to deemed sales.
At present, the biggest loophole in taxes and fees of real estate companies is the land value-added tax, which is basically not paid. Or pay only a small part. The common tax owed by real estate companies is stamp duty.
(iv) Capitalization of interest
Under certain conditions, special loans related to the purchase and construction of fixed assets in general enterprises are allowed to be included in the cost of related assets, which is called interest capitalization; At the same time, the Accounting System for Business Enterprises also stipulates that the interest expenses related to real estate development borrowed by real estate development enterprises should be included in the real estate development cost before the development products are completed. According to different purposes, some real estate companies increase interest capitalization, while others do not, all of which are included in the current expenses. We should mainly pay attention to increasing the capitalization of interest.
Audit evidence collection:
1. Ask for the loan contract, pay attention to whether the loan contract is related to real estate development, the loan interest rate and the loan term, and check whether the calculation is correct in combination with the capitalization interest rate.
2. Judge whether the capitalization period is reasonable by combining the delivery records of the construction party and the acceptance records of relevant departments such as quality inspection and fire control.
3. Loans granted by group companies to subsidiaries through collective unified loans. For example, if a subsidiary of a real estate company uses a group loan to develop real estate, the interest it pays is not higher than the bank's interest in the same period, and the part that meets the capitalization conditions can be capitalized.
(5) Loan mortgage
For real estate companies with tight funds, there are often a lot of bank loans. Due to the increasing difficulty of financing in financial markets, most of the loans obtained are secured loans and mortgage loans. The fixed assets and equipment of real estate companies are of little value, and most of the assets used for mortgage involve real estate for sale. Pay special attention to whether the property sold will be used for mortgage.
Audit evidence collection:
Ask for a mortgage contract, and analyze the types, values and locations of assets used for mortgage in the list of collateral. If the mortgaged property is for sale, compare the mortgaged area of the property with the unsold area in the sales statistics. If the former is greater than the latter, it means that the property that has been sold is used for mortgage.
(6) False sales
False sales are generally divided into false mortgages, and tacit understanding is reached with relevant parties, especially when the company needs profits, and then the house is returned after it is really sold. False mortgage refers to a practice that real estate development enterprises reach a sales agreement with the so-called "buyer" and then take mortgage funds from banks when the commercial housing is not really sold. The so-called "buyers" are actually impostors found by real estate developers, often their internal employees. Before finding a real buyer, the interest is often provided by the real estate development enterprises themselves. In this way, you can obtain bank credit funds and obtain the interest difference of bank credit. Generally speaking, the interest rate of bank loans is lower than the normal level in the mortgage interest rate. Create a false sales atmosphere to attract other property buyers, so as to achieve the purpose of indirect sales promotion. The amount of money purchased by related parties is often large, and the property purchased is a floor with higher profits, mainly to generate profits.
Audit evidence collection:
(1) Ask for the sales contract. Compared with the normal mortgage contract, the elements of the contract terms are basically the same, but the contents of the false mortgage contract are incomplete.
(2) If the principal and interest of the mortgage is provided by the real estate enterprise itself, at this time, the enterprise often pays the same amount to the bank on a regular basis, and at the same time falsely hangs an enterprise;
(3) Pay attention to the large-value sales business, and ask for contracts, delivery records and payment collection. Often false sales are 100% payment, but there is no delivery record. It is also not agreed to handle real estate licenses, land use certificates and other related matters. Pay special attention to the later sales payment. For such sales, you should go to the scene to see the use of the house. If it is idle, there may be problems. Obtain the visa information for handling the owner's stay. False sales often do not go through these procedures.
(4) The residential mortgage provided by the enterprise to employees, which is not deducted from the employee's salary income, is regarded as the welfare provided by the enterprise to employees, and employees need to pay personal income tax. If the enterprise does not deduct personal income tax, it may be a false mortgage.
(7) Land to be developed
After the real estate company applied for land, it did not develop in time or had no development ability. With the development of the market, the land continues to appreciate, but the land to be developed is not allowed to be transferred. Land that has not been developed according to the approved use shall be recovered by the Bureau of Land and Resources and dealt with separately. Enterprises often transfer land in disguised form by means of joint development.
Pay attention to whether the land to be developed is allocated.
(8) The information provided upon request is different from other enterprises.
Expense allocation table (mainly what is the basis of expense allocation, such as allocation according to estimated sales amount), project final accounts data, and project acceptance data.