Docstoc

Period costs

Document Sample
Period costs Powered By Docstoc
					Period costs
Period costs
During the fees outlined
Cost of an enterprise during the current period and can not be classified as direct or
indirect operating costs, but directly through profit or loss the fees. Including sales
charges, management fees and finance charges.
During the cost is not directly attributable to the cost of a particular product cost. It
happened over time with the current product management and product sales directly
related with the output of products, products not directly related to the manufacturing
process, that is easy to determine the period of its occurrence, it is difficult to
distinguish it belongs products, and therefore can not be included in the product
manufacturing costs, but in the event of the period is deducted from the profit and loss.
Period includes the direct sales from the company's current revenue less
operating expenses, management fees and finance charges.
We often say that the "current expenses" generally refers to
narrow the cost during the current period, that is, during a particular accounting
period costs (operating expenses, management fees, finance charges).
If the broad sense, the cost should include the current period of current costs and
current costs.
Cost differences during the
First, differences in management costs
(A) Business entertainment expenses
Accounting system provides an enterprise business                       hospitality in
"management fees charged to''subjects, honestly, no
way to withholding. Occur entertainment expenses, the debit" management
fees       "(entertainment        expenses),       credit      "bank
deposits", "cash''subjects.
Tax law allows taxpayers to place their business directly related to entertainment
expenses, the ratio in the range of the following provisions can be deducted: annual
sales (business) in 15 million yuan and its net income less, not more than sales
( business) net income 5 ‰; annual sales (business) more than 15 million yuan of net
income does not exceed that part of the 3 ‰.
Taxpayers to claim certain deductions for business entertainment expenses, the tax
authorities require that information should be provided to prove the authenticity of the
adequate and effective evidence or information. Can not be provided, shall not be
deductible.
Some explanations:
1. The standard refers to net income of taxpayers engaged in production and business
activities of the revenue net of sales discounts, sales and other expenses to return the
amount of income after, including the main business income and other operating
income. Taxpayer from the joint venture after-tax profits divided back or from the
stock dividends and other business points back, not as a provision for the base
entertainment expenses, because their after-tax profits, dividend income related to
provision for the other companies have a business Hospitality. In general, the
provision      for    entertainment      expenses     of    the    income     can    be
"profit" in the amount of operating profit before income base,
operating profit after investment income, subsidy income, operating income should be
calculated net of the standard business hospitality base.
2. Foreign Investment Enterprises and Foreign Enterprises Income Tax Law of the
standard deduction on entertainment expenses and income tax provisions within the
different enterprises. Foreign Investment Enterprises and Foreign Enterprises Income
Tax Law Implementation Rules, regulations, enterprises for the same production and
business-related, reasonable entertainment expenses (entertainment expenses), should
provide reliable records or documentary evidence, within the following limits were
granted As costs are incurred:
(1) annual net sales 15 million yuan (inclusive) below, shall not exceed the net sales
of 5 ‰; annual net sales more than 15 million yuan, and shall not exceed that part of
net sales 3 ‰;
(2) the total annual business income of 500 yuan (inclusive) below, shall not exceed
the total revenue 10 ‰; annual business income portion of the total over five million
yuan, part of the business shall not exceed the total income for 5 ‰.
Total net sales and operating income is business income or business income, sales of
the net book does not include companies selling goods or providing taxable services
of VAT charged by the output tax. Therefore, no provision for value-added output VAT
entertainment expenses.
Calculated according to net sales entertainment expenses charged to the industry:
industrial manufacturing, farming, aquaculture and commercial. Income by business
entertainment expenses charged to the industry: hotels, restaurants, entertainment,
transport, construction and installation industry, finance, insurance, leasing, repair,
design and consultation, and other service industries.
Cross-sector business enterprises, should be split by net sales or business
entertainment expenses charged to income limits, if the division are unclear,
according to their main business to determine their trades.
3. Business enterprises should strictly distinguish between hospitality and conference
fees, entertainment expenses shall not squeeze into the meeting fee.
"Enterprise income tax deduction approach" provides the
taxpayer with business activity occurring reasonable travel expenses, conference fees,
directors fees, the competent tax authorities require that information should be able to
provide legitimate evidence to prove its authenticity, or shall not be deductible.
Meeting cost evidence should include: meeting time, place, persons present, and the
content, purpose, cost standards, payment vouchers, etc..
4. National Shopping Service on the import and export business agent charged to
operating income of hospitality sales agency has special provisions for the issue,
Deputy Shopping Service consignment import and export business income can not
exceed 2% of the ratio of charged to entertainment expenses, part of more than 2% for
tax adjustment. "Enterprise income tax deduction approach"
after the enactment of the policy still continues.
5. Major in foreign investment, agency and other business enterprises, not financial
accounting system provides the main business revenue, business hospitality industry
can not be in accordance with the provisions of the financial system, the ratio of
execution. "Is not the main business income on corporate hospitality
expenditure business issues notice" (Financial Enterprise [2001] No. 251)
stipulates that all financial accounting system provided no sales or business and other
main business income of the enterprise, it can be to obtain various types of income
does not exceed 2% of the proportion of costs in the management of the necessary
factual entertainment expenses are incurred. Various types of business benefits
achieved, including investment income, futures receipts, purchasing consignment
income, other business income. Whether the enterprise income tax treatment in
accordance with the provisions of the present State Administration of Taxation has not
yet deduction of such percentage in business to make clear that hospitality.
Differences and deal with: tax law and the difference between the accounting system,
accounting system requires enterprises to truly charged to entertainment expenses, tax
law provides that the income tax before the deduction limit for business entertainment.
Difference arises because each provides different purposes, the accounting system to
reflect the profit or loss situation, factual entertainment expenses charged to allow.
However, pre-tax limit tax deduction provisions, mainly to ensure the
country's revenue, to prevent taxpayers from deducting pre-tax cost of
more than reduce the tax base.
Usually occurs when corporate hospitality business, according to the provisions of the
accounting system, when the end of corporate income tax levied tax adjustments to
deal with differences.
(B) of the various insurance funds and co-ordinate fund
Company to pay insurance fund and co-ordinate the various funds, is essential to
protect the national nature of the insurance.
Accounting system provides enterprises and co-ordination for various types of
insurance funds incurred by the Fund, not subject to the restrictions, according to
actual amount included in "management fees" Subject
accounting. Payment, debit "management costs" (staff pensions,
unemployment insurance staff, legal personal safety insurance, insurance, etc.) and
credit the "bank" subject.
Tax law, taxpayers provided for all employees by the state tax authorities, labor and
social security department or its designated agency to pay the basic old-age insurance,
basic medical insurance, unemployment insurance and other basic security nature of
the payment by the tax authorities for examination , you can deduct a specified
percentage. Part of the economic good enterprises to establish supplementary pension
insurance and pay the amount of total wages less than 4% in the part, and enterprises
to establish supplementary medical insurance, the amount extracted in less than 4% of
total wages part of the payment of corporate grant in full before income tax deduction.
This applies to the province of Liaoning and other provinces, autonomous regions and
municipalities according to the provisions of the experimental areas.
Non-pilot areas enterprises to est

				
DOCUMENT INFO