Stock trading, for beginners, it is necessary to know some basic knowledge of beginners if they want to manage their money quickly and not lose their way. This issue of Bian Xiao summarizes the knowledge points about equity investment for your reference. Let's take a look!
Subsequent measurement of long-term equity investment
1. Subsequent measurement by cost method:
(1) Confirmation of investment income: the investment income is limited to the dividend distribution within the net profit share realized after investment.
For example, if the accumulated net profit after investment is 100000 and the share ratio is 10%, then the dividend within the range of1000×10% =100 should be recognized as the investment income.
Accounting treatment: if the investee declares to pay cash dividend 1000, the investment income shall be confirmed according to the shareholding ratio 10%:
Debit: dividend receivable1000×10% =100.
Loan: investment income 100
Cash bonus received:
Debit: bank deposit 100
Credit: dividends receivable 100
Confirm cost reduction
If the accumulated cash dividend exceeds the share of accumulated net profit invested in the previous year, the excess is recognized as cost reversal; If the cost has been reduced before, then the reduced cost should be washed back.
For example, the accumulated net profit after investment is 654.38+million, accounting for 654.38+00% of the shares, the accumulated dividend is 2 million, and the accumulated write-down cost is 200-654.38+000× 654.38+00%, and the previously written-down part should be washed back.
accounting treatment
If the invested company declares to pay the cash dividend 1000, its share shall be calculated according to the shareholding ratio 10%, and the expenses for the part exceeding the net profit shall be reduced by 50%:
Debit: dividends receivable 100
Loan: Long-term equity investment 50 (beyond the book net profit)
Investment income 50
If the investment cost has been reduced before 100, it is necessary to turn back to the reduced part 50 and confirm the investment income 150:
Debit: dividends receivable 100
Long-term equity investment 50 (previously offset)
Loan: investment income 150
Subsequent measurement method of equity
(1) Reduction of profit and loss adjustment: the reduction of profit and loss adjustment is limited to the dividend distribution less than the confirmed investment income.
For example, if the investment income confirmed after investment is 2 million, then the dividend distribution less than 2 million should be deducted as the profit and loss adjustment details.
Accounting treatment: the investee has declared to pay cash dividend 1000, and the due share is calculated according to the shareholding ratio of 25%, which is less than the confirmed investment income:
Debit: dividend receivable 1000×25%=250.
Loan: long-term equity investment-profit and loss adjustment 250
Cash bonus received:
Debit: Bank deposit 250
Credit: Dividend receivable 250
Confirm investment income
If the accumulated cash dividend exceeds the accumulated share of book net profit after investment, the reduced confirmed cost is less than book net profit, and the confirmed investment income is greater than the confirmed investment income; If the investment income is lower than the confirmed part, the detailed deduction is confirmed as profit and loss adjustment.
For example, if the accumulated net profit after investment is 6,543,800,000, with a share of 25% and a dividend of 3,000,000, the recognition cost of more than 2,500,000 will be reduced.
Accounting treatment: the invested company declares to pay cash dividend 1000, and the share of 250, which is 25% of the shareholding ratio, is used to offset the investment cost, and the investment income 180 is confirmed before.
Debit: Dividend receivable 250
Loan: long-term equity investment-cost 50
Long-term equity investment-profit and loss adjustment 180
Investment income 20 (dividend received is greater than the share of confirmed investment income less than book net profit)
Cash bonus received:
Debit: Bank deposit 250
Credit: Dividend receivable 250
Profit and loss adjustment processing
The investing unit shall adjust the long-term equity investment-profit and loss adjustment ledger according to the net profit realized by the invested unit and the share calculated according to the shareholding ratio.
Accounting treatment: the net profit realized by the invested company is 1000, and the investment income is confirmed according to the shareholding ratio of 25%:
Borrow: long-term equity investment-profit and loss adjustment 1000×25%=250.
Loan: investment income 250
Adjust net profit
If the fair value of the identifiable net assets of the investee is inconsistent with the book value, the investee needs to adjust the book net profit of the investee according to the fair value of the investee, and then calculate its share according to the shareholding ratio.
For example, the fair value of fixed assets is inconsistent with the book value, which affects depreciation and amortization. If the fair value is greater than the book value, depreciation should be calculated more, so the net profit should be reduced.
Accounting treatment: if the investor holds 25% of the shares, the investee will realize a net profit of10 million, the book value of fixed assets 1000, the fair value 1500, and the service life is 5 years, which will affect the net profit =-(1500-1.
The book value of intangible assets is 654.38+million, the fair value is 8 million, the service life is 5 years, and the affected net profit = (65.438+0000-800)/5× 25% = 65.438+00.
After adjustment, the net profit share of the invested company =1000× 25%-25+10 = 2.35 million.
Note: the adjustment of net profit here does not need to consider the impact of income tax. The reason is that the value-added changes in asset appraisal are not recognized by the tax law, and there is no income tax problem.
Handling of other changes in rights and interests
Where the capital reserve of the invested entity changes, the investing entity shall calculate its share according to the shareholding ratio and confirm the adjustment of long-term equity investment.
For example, if the fair value of the investee's available-for-sale financial assets changes, the impact of income tax should be considered.
Accounting treatment: if the capital reserve of the invested unit changes, the investing unit shall calculate its share according to the shareholding ratio, confirm other changes in rights and interests, and adjust long-term equity investment. If the fair value of the investee's available-for-sale financial assets increases by 65,438+0,000, it will be included in the capital reserve after considering the impact of deferred income tax, and the investee will be calculated according to the shareholding ratio:
Borrow: Long-term equity investment-other changes in equity 750×25%
Loan: capital reserve-other capital reserve 750×25%
Loss recognition and adjustment
The confirmation and adjustment of loss can refer to the confirmation and adjustment method of net profit. The reason is the same, but net profit is a negative loss, so it is easier to understand the treatment of loss from this perspective.
In addition, if the long-term equity investment is confirmed to be impaired, the book value will be written down to zero. If it is an excess loss, the long-term receivables and estimated liabilities will be written off in turn, and the amount of each subject will be written back in the opposite direction after the net profit is realized.
Accounting treatment: if the net loss of the investee is 6,543,800,000 yuan, its share shall be confirmed according to the shareholding ratio of 25%:
Borrow: investment income
Loan: long-term equity investment-profit and loss adjustment
After the book value of long-term equity investment is written down to zero:
Borrow: investment income
Loans: long-term receivables
If it is necessary to undertake additional obligations according to the provisions of the investment agreement, it is necessary to confirm the estimated liabilities:
Borrow: investment income
Loans: estimated liabilities