Small Business Accounting Standards

Small Business Accounting Standards
General Provisions
The first order to regulate small business accounting recognition, measurement and reporting behavior, promote the sustainable development of small businesses, small businesses play an important role in the national economy and social development, according to "People's Republic of China Accounting Law" and other relevant laws and regulations formulated guidelines.
This Standard applies to lawfully established within the territory of People's Republic of China, in line with small businesses, "Standard for SMEs planning regulations" under the standards of the enterprise.
The following three types of small businesses except:
(A) stocks or bonds in the market, publicly traded small businesses.
(B) the financial institution or other small business of a financial nature.
The parent company and subsidiaries within the (C) Enterprise Group.
The aforesaid enterprise groups, the definition of parent and subsidiary and the provisions of "Enterprise Accounting Standards" is the same.
Article comply with the criteria set forth in Article small businesses can perform this Statement to be "Corporate Accounting Standards."
(A) the implementation of the guidelines for small businesses, transaction or event occurred in the absence of this Code norms, it can be treated with reference to the relevant provisions of "Enterprise Accounting Standards" in.
(Ii) the implementation of "Enterprise Accounting Standards" small business can not be in the implementation of "Enterprise Accounting Standards" at the same time, select the relevant provisions of the Code.
(Iii) the implementation of the guidelines for small business public offering of stocks or bonds shall be converted to "Corporate Accounting Standards"; because of the size or nature of business operations do not lead to changes in accordance with the guidelines specified in Article II to become medium-sized enterprises or financial institutions It shall be from January 1 next year into "corporate accounting Standards."
(Iv) has been executed, "Enterprise Accounting Standards" of listed companies, medium-sized and small enterprises can not be converted to the implementation of the guidelines.
Article 4 of this code into the implementation of small businesses, "Enterprise Accounting Standards", shall - accounted for the relevant provisions of "Enterprise Accounting Standard No. 38 for the first time the implementation of Accounting Standards," and so on.
Chapter 4 Editing
Assets
Article assets, refers to small companies in the past transactions or events, small businesses owned by or controlled, is expected to give small businesses the resources to bring economic benefits.
Small business assets in accordance with the liquidity can be divided into current assets and non-current assets.
Article Small business assets shall be measured by cost, no provision for impairment of assets.
Section Current Assets
Article VII of liquid assets of small businesses, is expected to refer to 1 year (including 1 year, the same below) or more realizable within one year of a normal business cycle, asset sale or consumption.
Small businesses Current assets include: monetary funds, short-term investments, accounts receivable, prepayments, inventories and the like.
Article VIII Short-term investments are purchased by small businesses can readily realizable and held for not more than one year (including 1 year, the same below) of investments, such as small businesses in order to make the difference for the purpose from the secondary market purchase into stocks, bonds, funds.
Short-term investments should be accounted for in accordance with the following provisions:
(A) to cover short-term cash investments made shall be in accordance with the purchase price and related taxes as a cost measure.
Actually paid cash dividends declared but not yet paid or bond interest to price included matured but not yet received, shall be separately recognized as receivable dividend or interest receivable not included in the cost of short-term investments.
(B) short-term investment holdings, cash dividends declared by the investee or interest payable by the debtor in accordance with Japanese interest installments, the first repayment of principal interest coupon rate of the bonds shall be included in investment income.
(Iii) the sale of short-term investments, net of the book balance of the sale price, net of related taxes, should be recognized as investment income.
Article IX receivables and prepayments, refer to the various claims of small enterprise in the daily production and business activities. They include: notes receivable, accounts receivable, dividends receivable, interest receivable, other receivables and other receivables and prepayments.
Receivables and prepayments shall be accounted for in accordance with the amount occurred.
Article X small business receivables and prepayments, receivables and prepayments can not be recovered after the deduction of the recoverable amount recognized in one of the following conditions, as bad debt losses:
(A) the debtor declared bankrupt, shut down or dissolved, revoked, or is legally canceled, revoked the business license, the liquidation of its assets less settled.
(B) the death of the debtor, or legally declared missing, death, property or inheritance of insufficient liquidity.
(C) the debtor more than three years of outstanding and there is conclusive evidence that has been unable to repay the debts.
(Iv) the debtor or debt restructuring agreement reached after the court approved the bankruptcy reorganization plan, the recovery can not.
(V) force majeure natural disasters, war and as a result can not be recovered.
(Vi) the accounts, tax departments other conditions prescribed.
Receivables and prepayments bad debt losses should be recognized at the time of the actual operating expenses, and write-downs receivables and prepayments.
Article XI inventory, refers to small businesses held to prepare for the sale of finished goods or merchandise in the daily course of business, in the production process of the product will be consumed in the production process or provision of services and materials during materials, as well as small businesses (agriculture, forestry, animal husbandry and fishery) held for sale or consumption of agricultural biological assets in the future harvest.
Small business inventory includes: raw materials, products, semi-finished products, merchandise, working materials, processing materials and consumable biological assets.
(A) raw materials, refers to small enterprises in the production process by working to change its form or nature and pose a variety of raw materials and the main products are mainly entities, auxiliary materials, purchased semi-finished products (purchased parts), repair parts (spare spare parts), packaging materials, fuel and so on.
(B) products, refers to small manufacturing enterprises are unfinished products. Including: various production processes are processed products, and processed but not yet completed examination or inspection procedures but not yet handle storage products.
(Iii) semi-finished products, it refers to small businesses through the production process and some that have been qualified to deliver semi-finished products warehouse storage, but not yet completed in the manufacturing of finished products become subject to further processing of intermediate products.
(D) finished products, refers to small companies have completed the entire production process and have acceptance of storage,
Standard specifications and technical conditions, ordering units could be sent under the conditions specified in the contract, or can be sold as a commodity of foreign products.
(V) commodity refers to small businesses (wholesale, retail) purchased or commissioned processing has been completed and acceptance of storage of various commodities for sale.
(F) turnover materials, refers to small businesses can be used repeatedly, and gradually transfer its value but still maintain the original shape and not recognized as fixed assets in the material. Including: packaging, consumables and small enterprises (construction) of steel formwork, timber formwork, scaffolding.
(Vii) processing materials, refers to small business commission processing units in a variety of materials, goods and other supplies.
(Viii) consumable biological assets, refers to small businesses (agriculture, forestry, animal husbandry and fishery) growing field crops, vegetables, timber and livestock sale and the like.
Article XII of small business inventory acquired, shall be measured at cost.
(A) the cost of purchased inventory include: the purchase price, related taxes, transport, handling, insurance, and other direct costs of purchased inventory process occurs, but not in accordance with the tax law can deduct the input VAT .
(B) obtain inventory processing costs by further comprising: direct materials, direct labor and manufacturing costs allocated according to a certain method.
After one year in order to achieve the above manufacturing borrowing costs intended sale of the stock occurred also included in inventory costs.
The aforesaid Borrowing costs are interest and other costs associated with small businesses due to borrowings. They include: interest on borrowings, ancillary expenses, and exchange balance on foreign currency borrowings.
(C) the investor cost of inventory, shall be determined in accordance with the appraised value.
(Iv) the cost of providing services include: the provision of services directly related to labor costs, material costs and indirect costs should be assessed.
(E) self-cultivation, construction, cost - breeding consumable biological assets shall be determined in accordance with the following provisions:
1. Field crops and vegetables cultivated their own costs include: seeds, fertilizers, pesticides and other materials consumed before harvest costs, labor costs and indirect costs should be assessed.
2. The cost of consumable biological assets as forests create self include: reforestation fee before the occurrence of the canopy, tending, forest operating facilities, testing of good species, investigation and design, indirect apportionment.
3. The cost of self fattening livestock breeding include: feed costs occur before the sale, labor costs and indirect costs should be assessed.
4. Cost for aquaculture animals and plants include: seed, feed, fertilizer and other materials fee prior to the sale or storage consumption, labor costs and indirect costs should be assessed.
Cost (vi) inventory overage shall be determined in accordance with the same or similar stock market price or appraised value.
Article 13 For small businesses should adopt the FIFO method, the weighted average method or the specific identification method to determine the actual cost of inventories. Once the choice of valuation method shall not be changed.
For a similar nature and use of inventory, it should use the same costing method to determine the cost of inventories.
Availability is not a substitute for use for a specific purpose or to purchase inventory and manufacturing services provided by the individual valuation method to determine the cost of inventories.
For materials, are accounted for one-off basis, in the recipients included in their cost of production cost or current income; large amount of working materials, can also be accounted for using the graded method of amortization. Rent or lend working materials, do not need to account the cost, but should be reference to the registration.
For inventories sold, the cost should be carried forward to operating costs.
Article 14 Small businesses should be based on the characteristics of the production and cost management requirements, select suitable for the enterprise cost accounting objects, cost and project costing methods.
The production costs of small business users, shall be in accordance with, respectively, the imputation of cost accounting objects and cost of the project.
(A) belong to the cost of materials, labor fees direct costs, direct production costs included in the basic and auxiliary production costs.
(B) belong to auxiliary production workshop for the production of power products of other direct costs, production costs can be carried out as a secondary collection, and then follow the reasonable allocation method included in the basic cost of production; and to be directly included in the production of products produced by the occurrence of cost.
(Iii) other indirect costs should be treated as manufacturing costs imputation, end of the month, then a certain allocation criteria, the products included in the cost of distribution.
Article XV inventory derogation, disposal income, recoverable responsible for compensation and insurance claims, net of costs, related taxes, should operating expenses or operating income included.
Overage inventory gains achieved should be included in operating income.
Loss of inventory shortage occurs should be included in operating expenses.
Section long-term investment
Article XVI small business non-current assets are assets other than current assets.
Small business includes non-current assets: Long-term bond investments, long-term equity investments, fixed assets, productive biological assets, intangible assets, long-term prepaid expenses.
Article XVII long-term bond investments are small businesses prepared for the long (more than 1 year, the same below) bond investment holdings.
Article XVIII long-term bond investments should be in accordance with the purchase price and related taxes as a cost measure.
The actual payment of the price has been included in the bond interest due but not yet received, it shall be separately recognized as interest receivable not included in the cost of long-term bond investments.
Article XIX interest receivable long-term bond investments occurred during the holding period shall be recognized as investment income.
(A) interest installments, a principal long-term bond investments in debtor interest payable date in accordance with the coupon rate of interest receivable shall be recognized as interest receivable, does not increase the carrying balance of long-term bond investments.
(Ii) a long-term bond investment debt service, debtor interest payable in accordance with the date of the coupon rate of interest receivable balances should increase the carrying amount of long-term bond investments.
Discount or premium (c) bonds in the period to confirm the existence of bonds are amortized using the straight-line method when the relevant bond interest.
Article XX of long-term debt maturity investments, small businesses recover long-term bond investments shall be offset against the book balance. Disposal of long-term bond investments, net of the disposal price of the book balance, net of related taxes, should be recognized as investment income.
Twenty-one small business long-term bond investments meet one of the conditions listed in Article X of this Code, long-term bond investment can not be recovered after the deduction of the recoverable amount is recognized as a long-term bond investment losses.
Long-term bond investment losses should they actually arise included in operating expenses, while long-term bond investments offset against the book balance.
Article 22 Long-term equity investments are long-held small businesses ready to equity investments.
Article 23 Long-term equity investment shall be measured at cost.
(A) to pay for long-term equity investment acquired by cash, shall be in accordance with the purchase price and related taxes as a cost measure.
Actual payment have been declared but not yet paid cash dividends included in the price, should be recognized as a separate dividend receivable, is not included in the cost of long-term equity investment.
(Ii) Long-term equity investment acquired through non-monetary assets exchange, shall change the assessment of non-monetary assets and related taxes as a cost measure.
Article 24 Long-term equity investments should be accounted for using the cost method.
During long-term investments held by equity, was declared cash dividends or profit distributions, the amount shall be recognized as investment income share.
Article 25 Disposal of long-term equity investments, net of the cost of the disposal proceeds, net of related taxes, should be recognized as investment income.
Article 26 Long-term equity investment in small businesses comply with one of the following conditions, long-term equity investment can not be recovered after the deduction of the recoverable amount is recognized as a long-term equity investment losses:
(A) invested entity declared bankrupt, shut down or dissolved, revoked, or is legally canceled, revocation of business licenses.
(B) is a serious deterioration in the financial situation of the investment unit, accumulated huge losses occurred, have ceased to operate continuously for more than three years, and no reorganization plan to resume operations.
(Iii) investments which do not have control over the investment period of the expiry of the investment period or for more than 10 years, and the investment unit 3 consecutive years of operating losses resulting in insolvency.
(Iv) the investee financial situation seriously deteriorated, accumulated huge losses occurred, has completed the liquidation or liquidation of more than three years.
(V) the accounts, tax departments other conditions prescribed.
Long-term equity investment loss should be recognized at the time of the actual operating expenses, and write-downs of long-term equity investment Book balance.
Section III of fixed assets and biological assets
Article 27 Fixed assets, refers to small enterprises producing goods, providing services, lease or management and have useful lives more than two years of physical assets.
Small businesses Fixed assets include: houses, buildings, machinery, machinery, vehicles, equipment, appliances and tools.
Article 28 of fixed assets shall be measured at cost.
(A) purchased fixed assets includes the cost: purchase price, related taxes, transport, handling, insurance, installation fees, but not in accordance with the tax law can deduct input VAT.
In sum purchasing several fixed assets not priced separately, shall be in accordance with the market price of fixed assets or similar assets or appraised value ratio of total distribution costs were determined the cost of fixed assets.
(B) the cost of self-constructed assets, the expenses for building the asset before completion and settlement occurs (including related borrowing costs) composition.
Small business products, by-products or income test construction in the process of commissioning formed offset cost of construction.
(Iii) the cost invested to a fixed asset, shall be determined in accordance with the assessment and related taxes.
Cost of fixed assets (d) finance leases, the total payment shall be in accordance with the lease agreement and related taxes and other place in the process of signing the lease contract is determined.
(V) cost of fixed assets overage shall be in accordance with the market price or the same or a similar assessment of the value of fixed assets, net fixed assets determined in accordance with the newness of the estimated depreciation balance.
Article 29 Small businesses should depreciation for all its fixed assets, fixed assets have been fully depreciated but still in use and the land can not be separately accounted depreciation.
Fixed assets depreciation of fixed assets should be based on the beneficiary relevant asset costs or profit or loss.
Depreciation in the preceding paragraph, refers to the useful life of fixed assets, according to the method of determining the depreciable amount systematically assessed. Depreciable amount refers to the fixed assets to be depreciated original cost (cost) less estimated residual value after the amount thereof. Expected net salvage value refers to the full estimated useful life of fixed assets, net of small businesses may obtain from the disposal of fixed assets in the expected costs of disposal. Have been fully depreciated, it is one that has been set aside enough of the fixed assets accrued depreciation.
Small businesses in accordance with Article 30 shall be the straight line method (ie, straight-line method, the same below) depreciation. Small business fixed assets due to technological advances, accelerated depreciation is really necessary, you can use the double declining balance method and the sum method.
Small businesses should be based on the nature and use of fixed assets, and to consider the provisions of the tax law, reasonably determine the useful life of fixed assets and estimated residual values.
Fixed assets depreciation method, useful life, expected net salvage value, once established, can not be arbitrarily changed.
Article 31 Small businesses should be a monthly depreciation of fixed assets increased month, the month is not depreciated, depreciation from next month; the month to reduce fixed assets, depreciation is still the month, from next month not depreciated.
Article 32 routine repairs of fixed assets shall be based on fixed assets in the event of the beneficiary relevant asset costs or profit or loss.
Reconstruction spending Article 33 of fixed assets shall be included in the cost of fixed assets, but rebuilding expenditures have been fully depreciated fixed assets and operating lease of fixed assets shall be included in long-term prepaid expenses.
The aforesaid fixed assets remodeling expenditures refers to expenditures change house or building structure, to extend the service life and so happened.
Article 34 The disposal of fixed assets, less its book value, net related taxes and clean-up expenses, shall be included in operating income or operating expenses.
The aforesaid book value of fixed assets refers to Fixed Assets (cost) after deducting the accumulative depreciation.
Loss shortage of fixed assets shall be included in operating expenses.
Article 35 productive biological assets, refers to small businesses (agriculture, forestry, animal husbandry and fishery) for the production of agricultural products, and other services provided or rental purposes biological assets held. Including: forest, firewood, production of livestock and draft animals and the like.
Article 36 The production of biological assets should be measured at cost.
(A) the cost of production of biological assets purchased, shall be determined in accordance with the purchase price and related taxes.
The cost of producing biological assets (b) or create their own breeding, shall be determined in accordance with the following provisions:
1. Cost of production of forest biological asset class to create their own include: the necessary expenses for forestation rate occurs before the scheduled production and business purposes, and tending, forest operating facilities, testing of good species, investigation and design, indirect apportionment, and so on.
2. The cost of producing their own draft animals and livestock breeding include: feed costs necessary expenses occurred before the expected production, labor costs and indirect costs should be assessed and the like.
The aforesaid predetermined production and business purposes, refers to the production of biological assets into the normal production period may be continuous and stable output of agricultural products for many years, providing services or hire.
Article 37 productive biological assets to be depreciated according to the straight-line method.
Small business (agriculture, forestry, animal husbandry and fishery) should be based on the nature and use of productive biological assets, taking into account the provisions of the tax law, reasonably determine the service life of the production of biological assets and estimated residual values.
The method of depreciation of productive biological assets, useful life, estimated residual value has been established, shall not be changed.
Small business (agriculture, forestry, animal husbandry and fishery) shall produce biological assets from use in January next month into the monthly depreciation; discontinue use of productive biological assets, provision shall cease to stop using the month from next month depreciation.
Section IV of intangible assets
Article 38 Intangible assets, refers to small enterprises for the production of products, providing services, lease or administrative purposes, without physical form identifiable non-monetary assets.
Small intangible assets include: land use rights, patents, trademarks, copyrights, non-patent technology.
Developed constructed buildings, the land use right and buildings should be treated separately. Purchase of land and buildings to pay the price should be between buildings and land use rights in accordance with a reasonable allocation method; difficult to allocate should be recognized as fixed assets.
Article 39 of the intangible asset shall be measured at cost.
(A) the cost of purchased intangible assets include: the purchase price, relevant taxes and other related expenses (including related borrowing costs).
(B) the cost of intangible assets invested by investors, shall be determined in accordance with the assessment and related taxes.
(Iii) cost of intangible assets developed by post-capitalized expenditures incurred to achieve before the intended use (including related borrowing costs) composition.
Article 40 small businesses on their own development expenditure of intangible assets occurred simultaneously satisfy the following conditions in order to be recognized as intangible assets:
(A) the completion of the intangible assets for use or sale is technically feasible;
(B) complete the intangible asset and use or sell it;
(Iii) can demonstrate the existence of a market intangible products or the intangible asset itself, the intangible assets will be used internally, it should prove its usefulness;
(Iv) availability of adequate technical, financial resources and other support resources to complete the development of the intangible assets, and the ability to use or sell the intangible asset;
(E) expenditure attributable to the intangible asset development phase can be reliably measured.
Article 41 Intangible assets are amortized using the straight-line method over its useful life, according to its beneficiaries relevant asset costs or profit or loss.
Amortization of intangible assets begin to stop or sell stop from the time when it is available. Relevant laws and regulations or the useful life of the contract, may be amortized in accordance with the provisions of the agreement or the useful life.
Small businesses can not be reliably estimated useful life of intangible assets, the amortization period shall not be less than 10 years.
Article 42 Disposal of intangible assets, net of proceeds on disposal of their book value, relevant taxes and other post shall be included in operating income or operating expenses.
The aforesaid book value of intangible assets, intangible assets are costs accumulated amortization deductions.
V Long-term prepaid expenses
Article 43 Long-term prepaid expenses of small businesses include: fully depreciated fixed assets remodeling expenditures, operating leased fixed assets remodeling expenditures, fixed assets overhaul expenses and other long-term deferred expenses.
The aforesaid fixed assets overhaul expenditures refers to expenditures at the same time meet the following criteria:
(A) repair expenditures amounted to acquire fixed assets tax basis of more than 50%;
(2) After the repair of fixed assets extend the life of more than 2 years.
Article 44 Long-term deferred expenses shall be amortized using the straight-line method in its amortization period, according to the beneficiaries included in costs or administrative expenses related to assets and write-downs of long-term prepaid expenses.
(A) have been fully depreciated fixed assets renovation expenditures, in accordance with the remaining useful life of fixed assets is expected to be amortized.
(B) operating leased fixed assets remodeling expenditures amortized over the remaining lease term of the contract.
(C) fixed assets overhaul expenses, in accordance with the remaining useful life of fixed assets be amortized.
(Iv) other long-term expenses, expenditures incurred from the month from next month amortized over the amortization period of not less than 3 years.
Chapter 5 Editing
Liabilities
Article 45 liabilities, refers to small businesses over the past transaction or event, the outflow of economic benefits expected to result in a present obligation for small businesses.
Small business liabilities according to their mobility, can be divided into current liabilities and non-current liabilities.
Section Current liabilities
Article 46 of the current liabilities of small businesses, is expected to refer to more than one year or within a normal business cycle of debts within one year.
Small businesses Current liabilities include: Short-term loans payable, and advance payments, employee benefits payable, taxes payable, interest payable and other.
Article 47 of the current liabilities shall be accounted for according to their actual amount.
Payables small businesses really can not pay, it should be included in operating income.
Article 48 shall be in accordance with the loan principal short-term borrowings and interest rates in the loan contract interest payable date accrued interest expense included in financial expenses.
Article 49 Wages payable, refers to small businesses for services rendered by employees to deal with various forms of employees remuneration and other related expenses.
Small businesses pay workers include:
(A) wages, bonuses, allowances and subsidies.
(Ii) employee welfare.
(3) Medical insurance, endowment insurance, unemployment insurance, industrial injury insurance and maternity insurance and other social insurance.
(D) housing fund.
(E) labor union funds, employee education funds.
(Vi) non-monetary benefits.
(Vii) compensation for termination of labor relations with employees given.
(8) Other service rendered by employees related spending.
Article 50 Small business accounting period shall employees provide services, employee benefits are recognized as a liability, and provide the employee service beneficiaries were the following accounting treatment:
(A) by the production of goods or providing services for employee benefits recorded as the product costs and service costs.
(B) shall be in construction, development projects intangible compensation for the employee, the cost of fixed assets or intangible assets included in cost.
(C) Other employee benefits (including compensation for termination of the labor relationship with the employees), and profit or loss.
Section II non-current liabilities
Article 51 of the small business non-current liabilities, current liabilities refers to liabilities beyond.
Small business includes non-current liabilities: Long-term borrowings and long-term payables.
Article 52 Non-current liabilities shall be accounted for according to their actual amount.
It shall be in accordance with the loan contract loan principal and interest accrued in interest payable date interest expense included in the relevant asset costs or financial costs.
Chapter 6 Editing
Owners' equity
Article 53 Owners' equity refers to the residual interest in the assets after deducting liabilities from the small business owners enjoy.
Small business owners' equity includes: Paid-up capital (or share capital, the same below), capital reserve, surplus reserve and retained earnings.
Article 54 of the paid-up capital, is an investor in accordance with the relevant provisions of the contract or agreement into small businesses, small businesses constitute part of the registered capital.
(A) small business investors receive cash or non-monetary assets invested capital shall present its registered capital in the share of paid-in capital included, the excess part shall be included in capital surplus.
(Ii) the investor in accordance with the relevant regulations on small business capital increase or capital reduction, small businesses should increase or decrease the paid-up capital.
Article 55 Capital reserve, refers to the small business investor contribution received more than its share of the registered capital or equity part.
Small businesses with capital reserve into capital shall be offset against capital reserves. Small business capital reserve shall not be used to cover losses.
Article 56 Surplus reserve refers to the small businesses in accordance with the law to extract profit after tax in the statutory reserve and discretionary fund.
Small businesses with surplus reserves to cover losses or increase capital shall be offset against the surplus reserves. Small business surplus reserve can be used to further expand production.
Article 57 Retained earnings refers to small businesses achieved net profit, after making up losses, and any statutory reserve fund, distribution of profits to investors, retained in the enterprise, over the years the balance of profits.
Chapter 7 Editing
Income
Article 58 The income refers to small businesses in the daily production and business activities in the form, it will lead to an increase in owners' equity, total capital inflows unrelated to economic interests of the owner input. Including: sales revenue of goods and labor income.
Article 59 The revenue from selling goods, refers to income of small businesses selling goods (or finished products, the material, the same below) made.
Typically, small businesses should be when merchandise and receipt of payment or receipt for the right to confirm the sale of goods revenue.
(A) Sales of goods collection using the commitment approach, recognized when revenue for collection.
(B) the sale of goods taken by way of advance payment, revenue is recognized when merchandise.
(Iii) sale of goods using the installment method, revenue is recognized at the date of receipt of the contract.
(Iv) sale of goods need to be installed and tested, revenue is recognized in the purchase of goods as well as the installation and acceptance by the time of inspection. Setup is simple, and can be recognized as revenue when merchandise.
(V) sale of goods using premium way of consignment, confirmed upon receipt of consignment inventory revenue.
(Vi) the sale of goods trade, sales of goods as a commodity sales processing, recycling commodities as purchased goods.
(Vii) take into product revenue is acquired at the date of the share of product sales income in accordance with the amount of products in the market price or appraised value.
Article 60 small businesses from the purchaser shall have received or receivable contract or agreement, the amount of sales income.
Sales of goods involving cash discount shall determine the amount of sales income shall be deducted from the cash discount before. Cash discount should actually arise, profit or loss.
Sales of goods related to business discounts, it shall determine the amount of sales income shall be deducted from the business after discount.
The aforesaid cash discount, refer to the debts deducted in order to encourage the debtor to pay the creditor within the time specified and provided to the debtor. Commercial discount, refers to small businesses in order to promote the sale of goods and the price of goods given the price deductions.
Article 61 has confirmed that small business sales revenue of goods sold merchandise sales occurred return (whether part of the year or part of the previous marketing year) should be offset against current income in the event of sale of goods.
Small business has confirmed that sales of merchandise discount sales revenue of goods sold occurred, it should be offset against current income in the event of sale of goods.
The aforesaid sales return, refers to small businesses because of the quality of goods sold, the variety does not meet the return requirements of other reasons. Sales allowances, refers to small companies due to substandard quality of goods sold and other reasons given in the selling price concessions.
Article 62 small businesses rendering of services, refers to small enterprises engaged in construction and installation, repair, transportation, warehousing and leasing, telecommunications, advice Brokerage, culture and sports, scientific research, technical services, education and training, catering and accommodation, brokerage income health care, community services, tourism, entertainment, event processing, and other labor services acquired.
Article 63 within the same fiscal year started and completed services shall provide services in the transaction is completed and receive payments or obtain rights to receive payment, the income is confirmed. The amount of labor income from the receipt of services received or receivable contract or agreement.
Start and completion of the service belong to different fiscal years, labor income should be provided in accordance with the schedule of completion confirmation. Annual balance sheet date, in accordance with the total service revenues multiplied by the completion progress deducts the accumulated fiscal year has confirmed that the amount of labor income after confirmation this year's labor income; at the same time, according to the estimated total service cost multiplied by the completion progress deducts previous fiscal year, the cumulative amount recognized after operating costs, operating costs this year carried forward.
When the contract or agreement Article 64 small enterprises signed with other companies comprise sales of goods and services, sale of goods component and the services component can be distinguished and can be measured separately, should be part of the sale of goods as sale of goods, the service provided as part of providing labor services.
Sales of goods and rendering of services can not be distinguished or can be distinguished, but can not be measured, it should be treated as a sale of goods.
8 Chapter VI editor
Costs
Article 65 charges, refers to small businesses occurred in the daily production and business activities, and will lead to reduction of the owner's equity, and the total distribution of profits outflow of economic benefit to the owner.
Small business expenses include: operating costs, business taxes and surcharges, sales expenses, administrative expenses and financial expenses.