Earnings Should Be Credited To Other Comprehensive Income Subjects.

Originally recorded in the "capital surplus - other capital surplus" subject, is now credited to the "other comprehensive income" subject, the subject conversion, this change is mainly due to other comprehensive income refers to the enterprise in accordance with the accounting standards of enterprises in the profits and losses recognized in the gains and losses after deducting the income tax after the net.

That is to say, it will eventually be included in profit and loss accounts, but business is not suitable for profit and loss accounting directly.

It's like turning all the way to the sea. It needs to take a turn in the middle. This pfer station is a "other comprehensive income" subject, which mainly includes the following situations:

1. the increase or decrease in other comprehensive income resulting from changes in the fair value, impairment and disposal of the available financial assets.

It also includes the difference between the fair value and the book balance on the reclassification day when the holding to maturity investment is reclassified as a sale of financial assets.

2. long term equity investment refers to the increase or decrease of other comprehensive income caused by the share in the other comprehensive income of the invested unit in accordance with the equity method.

There are two situations.

(1) the increase in other comprehensive income caused by other changes in the owner's equity other than net profit and loss, which is recognized by the equity method, is not a capital paction, but a holding gain.

Therefore, both individual statements and consolidated statements of investment units should be attributable to other comprehensive income.

(2) pairs of subsidiaries

When preparing consolidated statements, only the other companies of the company

In the consolidated financial statements, the other comprehensive income and minority shareholders' rights and interests recognized by the equity method are all other comprehensive income. The changes in the capital reserves or retained earnings caused by the rights and interests pactions of the subsidiaries make the changes of other capital reserves and minority shareholders' interests corresponding to the consolidated statements according to the rights and interests law are not other comprehensive income.

3. conversion of self employed real estate or inventory to fair value measurement.

The fair value of the conversion date is greater than the original book value, and the difference is recorded in the increase of other comprehensive income caused by the owner's equity and the pfer of the disposal date into other comprehensive income subjects.

4. the balance of foreign currency non currency items can be sold into other comprehensive income subjects.

The original "capital surplus - other capital accumulation" subjects are still accounted for in the "capital surplus - other capital accumulation" subjects.

For example, the equity payment of equity settlement shall be credited to the "capital surplus - other capital reserves" subject to the fair value credit of the equity instrument, but the fair value change of the equity components of Switching Company bonds shall still be recorded in the capital reserve - other capital reserves.

When dealing with long-term equity investments calculated by the equity method, all other related comprehensive income of the original equity method shall be accounted for when the equity interest method is used for accounting for the long term equity investment, and the same basis shall be used for the accounting of the assets or liabilities directly disposed of by the invested entity when the equity method is used for termination. The long-term equity investment calculated by the investor's equity disposal method shall be accounted for by the equity method.

Example: A enterprises hold 30% of B enterprises, which can exert a significant impact on B enterprises.

The amount of current B enterprises' accounts for other comprehensive income is 12 million yuan due to the change of fair value of the assets available for sale. In addition to that, the net profit and loss realized by B enterprises in the current period is 64 million yuan.

Suppose that the accounting policies and accounting periods applied by A enterprises and B enterprises are the same, the fair value of the identifiable assets and liabilities of B enterprises is the same as their book value when investing.

No internal pactions occurred during the current and prior periods.

The factors affecting income tax are not considered.

When A enterprises confirm that they should enjoy changes in the rights and interests of the owners of the invested units, their accounting treatments are as follows: (10000 yuan)

Borrowing: long-term equity investment -- profit and loss adjustment 1920

Other comprehensive income 360

Loan: investment income 1920 (6400 x 30%)

Other combined income was 360 (1200 x 30%).