According to accounting standards, debt restructuring refers to the matter that creditors make concessions according to the agreement reached with the debtor or the court ruling when the debtor has financial difficulties (such as cash flow difficulties, operational difficulties or other reasons) that make it impossible or impossible to repay the debt according to the original conditions. Creditors give in, that is, they agree that the debtor will repay the debt in an amount or value lower than the book value of the restructured debt now or in the future, such as reducing the principal or interest of the debtor's debt and lowering the interest rate of the debtor's debt payable.
In fact, debt restructuring is a typical exchange of non-monetary assets, and the gains and losses are handled according to the relevant rules of non-monetary assets exchange under the fair value model.
1. Pay off debts with assets.
It mainly includes two forms: paying off debts with cash and paying off debts with non-cash assets.
When the debtor pays off the debt in cash, the difference between the book value of the restructured debt and the actual cash paid shall be included in the current profit and loss (non-operating income-restructuring income).
Example: Guan Ying Company owes Guan Jie Company a loan of 2 million yuan. In 2008, Guan Ying Company encountered financial difficulties. After consultation with Guan Jie Company, both parties agreed to restructure the debt and exempt Guan Ying Company from the debt of 700,000 yuan. In June 2008, Guan Ying Company paid Guan Jie Company RMB 6,543,800+RMB 0,654,380+RMB 0,300, and both parties settled their debts. The relevant accounting treatment of Guan Ying Company is as follows:
Debit: Accounts Payable-Guan Jie Company 200
Loan: bank deposit 130
Loan: Non-operating income-debt restructuring income (Guan Jie Company) 70
Fill the "non-operating income-debt restructuring income" of 700,000 yuan into line 23 of the income statement.
When the debtor pays off the debt with non-cash assets, the difference between the book value of the restructured debt and the fair value of the transferred non-cash assets shall be included in the current profit and loss (restructuring income). The difference between the fair value of the transferred non-cash assets and their book value is included in the current profit and loss (asset disposal income, non-reorganization income).
If the non-cash assets are inventory, they are treated as sales. According to the Accounting Standards for Business Enterprises No.65438 +04- Revenue, revenue is recognized at fair value and the corresponding costs are carried forward. For non-cash assets belonging to fixed assets and intangible assets, the difference between their fair value and book value is included in non-operating income or non-operating expenditure.
Example: Jinping Company owes Jinchuan Company 3 million yuan for steel products. In 2008, Jinping Company had financial difficulties, and it was difficult to pay the above sum in a short time. After negotiation, Jinping Company repaid its debt with its product billet. The actual cost of this billet is 6.5438+0.8 million yuan, and the market price is 2.2 million yuan (excluding tax). Both parties are general VAT taxpayers, and the applicable tax rate is 17%. The relevant accounting treatment of Jinping Company is as follows:
Debit: Accounts Payable-Jinchuan Company 300
Loan: income from main business 220
Credit: Taxes payable-VAT payable (output tax) 37.4
Loan: non-operating income-debt restructuring profit 42.6
Carry forward inventory cost at the same time:
Debit: main business cost 180
Loan: Goods in stock 180
Paying off debts with inventory should be regarded as sales, and the income of 2.2 million yuan and the cost of 6.5438+0.8 million yuan are listed in lines 1 and 2 of the main table of the annual enterprise income tax return, and the "non-operating income-debt restructuring income" of 426,000 yuan is listed in line 23 of the income statement.
Example: In 2006, a property management company borrowed RMB 6,543.8+0,000 from Bank B, with an annual interest rate of 654.38+00% and a term of two years. In 2008, the loan expired and Company A was in financial trouble. After consultation, Company A checked out. The original price of the house is 6,543,800 yuan, the residual value is 880,000 yuan, and the appraised value is 6,543,800 yuan. Regardless of relevant taxes and fees. The accounting treatment of a property company is as follows:
Debit: Liquidation of Fixed Assets 88
Debit: accumulated depreciation 12
Loan: fixed assets-house 100
Borrow: Long-term loan-Bank B 100
Borrow: Interest payable 20
Loans: liquidation of fixed assets 88
Loan: non-operating income-net income from disposal of fixed assets 17
Loan: non-operating income-debt restructuring income (Bank B) 15
In line 23 of the income statement, "non-operating income-debt restructuring profit" is 6,543,800 yuan, and in line 654.38+0.9, "non-operating income-net income from disposal of fixed assets" is 6,543,800 yuan.
If the non-cash assets are long-term equity investments, the difference between their fair value and book value shall be included in the investment profits and losses.
2. Convert debt into capital.
In the process of debt-to-equity swap, the debtor will recognize the total face value of the shares enjoyed by the creditor who gave up the creditor's rights as the capital stock (or paid-in capital), and the difference between the total fair value of the shares and the capital stock (or paid-in capital) will be recognized as the capital reserve (which is handled at the equity level and does not involve the profit and loss of the enterprise). The difference between the book value of the restructured debt and the total fair value of the shares is included in the current profit and loss (restructuring profit and loss).
For example, Shuguang Real Estate Development Company owed 80 million yuan to Shida Cement Factory in 2005, which has not been paid back yet. Shuguang real estate company has difficulty in cash flow. In order to ensure the continuous use of building materials products in Shida Cement Plant, in 2008, Shuguang Company and Shida Company reached an agreement to pay off debts with 3,000 shares of Shuguang Company, with a par value of 1 yuan per share. At the time of transfer, the stock price of 3,000 yuan was 75 million yuan. The relevant accounting treatment of Shuguang Company is as follows:
Debit: Accounts Payable-Shuguang Company 8000
Loan: paid-in capital is 3,000 yuan.
Loan: capital reserve 4500.
Loan: non-operating income-debt restructuring profit (Shida Cement) 500.
Fill in "non-operating income-debt restructuring profit of 5 million yuan" in line 23 of the income statement.
Third, modify other debt conditions.
Such as reducing the principal of debt and reducing the interest on debt.
The debtor shall take the fair value of the debt after modifying other debt conditions as the book value of the restructured debt, and the difference between the book value of the restructured debt and the book value of the restructured debt shall be included in the current profit and loss (restructuring profit and loss).
The benefits of debt restructuring actually come from the concessions made by creditors to debtors. In the process of debt restructuring with non-cash assets and equity, the debtor may get gains (or losses) from asset disposal in addition to the gains from debt restructuring.
The debtor should distinguish between debt restructuring gains and asset disposal gains (losses).
Only when the debtor pays off his debts with non-cash assets will the disposal of non-cash assets be involved, and there will be gains and losses in the disposal of non-cash assets. Accounting standards make it clear that non-cash assets such as fixed assets, intangible assets and inventories are not non-monetary assets. For the debt paid off by shares (debt-to-equity swap), the debtor recognizes the total face value of the shares that the creditor gave up the creditor's rights as capital stock (or paid-in capital), and the difference between the total fair value of the shares and the capital stock (or paid-in capital) is recognized as capital reserve, which does not involve asset disposal, and of course there is no income from asset disposal. In accounting and income tax declaration, we should distinguish between debt restructuring income and asset disposal income. The income from debt restructuring shall be filled in the "income from debt restructuring" in line 23 of this schedule; According to the design spirit of this declaration form, the income from asset disposal should be reported in the "non-monetary asset transaction income" in line 20 of this form, except for inventory. Asset disposal losses shall be filled in the relevant columns of Schedule 2, Cost and Expense Table.