外商投资企业会计制度

外商投资企业会计制度第一页第二页第三页第四页第五页Chapter 6 Fixed Assets andWork in ProgressArticle 29 Fixed assets of enterprises with foreign investment shall be accounted for separately and separately disclosed in the balance sheet. Assetsunder finance leases shall be accounted for separately until ownership is transferred. Assets under operating leases shall be recorded in supporting memorandum books and shall be disclosed in the notes to the accounts. Article 30 Fixed assets shall be accounted for at cost.The cost of fixed assets contributed by the investors represents the amount stated in contracts, agreements, the enterprise's application document for incorporation or the statement of examination and receipt of fixed assets contributed including transportation, loading and unloading expenses, insuranceand taxes payable borne by the enterprise.The cost of fixed assets purchased represents the purchase consideration including transportation, loading and unloading expenses, insurance and taxespayable. Cost of fixed assets manufactured and constructed by the enterpriseitself represents actual expenses incurred in the manufacturing and constructionprocess.The cost of fixed assets under finance leases represents the purchase consideration stated in the contracts including transportation, loading and unloading expenses, insurance and taxes payable borne by the enterprise. Wherethe purchase consideration stated in the contracts includes interest and handlingcharges, that portion of the interest and handling charges shall be deducted fromthe cost. Such interest and handling charges need not be accounted for separatelyif the value of the fixed assets under finance leases is not substantial and the term of the lease is not long.The cost of fixed assets donated to the enterprise represents the price ofthe fixed assets determined based on the provisions set out in the second paragraph of Article 49 of these Regulations, including transportation, loading and unloading expenses, insurance and taxes payable borne by the enterprise. Forused assets, the rate of depreciation shall be estimated according to the condition of these assets.Surplus of fixed assets on physical counts shall be determined by the replacement cost of such assets and their rates of depreciation shall be estimated according to the condition of these assets.Expenses incurred in modifying fixed assets for the purpose of expansion, replacement, renovation or technological improvement may be included under thecost of fixed assets.Cost shall also include installation costs, if any, of the fixed assets.Article 31 Fixed assets shall generally be depreciated using the straightline method. The production or service output method may also be used where thestraight line method is not appropriate.Depreciation of fixed assets shall generally be determined based on the cost of fixed assets and the depreciation rate set for each category of fixed assets. Depreciation rates may also be applied on an individual asset basis where the depreciation rate by category is not appropriate. The rates of depreciation of fixed assets shall be determined based on their cost, estimated residual values,which shall generally be not less than 10% of their cost, and their expected useful lives.Accelerated depreciation shall generally be calculated using only the double reducing balance method or sum-of-digits method.Fixed assets shall be depreciated on a monthly basis from the month following that in which the assets are used in operation. For fixed assets which are no longer used in operation, provision for depreciation on such assets shall ceaseto be made from the month following that in which the assets cease to be used.Fixed assets may continue to be used after they have been fully depreciated during which time no further depreciation shall be required. Provision for depreciation shall also cease to be made for fixed assets damaged before the endof their expected useful lives.Where the cost of fixed assets is adjusted for the purpose of expansion, replacement, renovation or technological improvement, depreciation shall be calculated after taking into account the adjusted cost, accumulated depreciationalready provided, estimated residual values and the remaining useful lives. Fixedassets used in construction work during the set-up period of the enterprise maybe depreciated in full on completion of work or by equal installments over the period of construction and the depreciation charge shall be included in the costof construction. In respect of fixed assets used during the set-up period but notdirectly related to the construction work, the depreciation charge shall be included in pre-operating expenses. Assets under finance and operating leasesshall also be depreciated. Fixed assets, other than buildings, idle for a long period shall not be depreciated.Accumulated depreciation shall be accounted for separately and separately disclosed as a deduction under fixed assets in the balance sheet. Accumulateddepreciation for fixed assets under finance leases shall be accounted for separately.Article 32 A physical count of fixed assets shall be made on a regular basis, at least once every year. Differences between the physical count resultsand book records shall be adjusted for as soon as possible after the reasons forsuch differences are identified. The adjustment shall normally be made before thefinalisation of accounts for the accounting year in which the physical count of assets is conducted. Any surplus of fixed assets identified on physical counts shall be accounted for as operating income at an amount equal to their costaccumulated depreciation while losses shall be accounted for as operating expenses at an amount equal to their cost less accumulated depreciation and anycompensation from person(s) causing such losses or from insurance companiones.Surplus and shortage of fixed assets on physical counts during the constructionperiod shall be included in the related construction cost.Net profit or losses on disposals of fixed assets arising from sale, obsolescence or damage shall be accounted for as non-operating income or expenses.Net profit or losses on the disposal of fixed assets arising during the period of construction shall be accounted for as part of the construction cost.During the set-up period of the enterprise, surplus or shortage of fixed assets on physical counts or on disposals not directly related to any construction work, and profits of losses on disposals of fixed assets as a result of extraordinary causes shall be accounted for as pre-operating expense. Article 33 Construction in progress of enterprises with foreign investment shall include preparation work before commencement of the construction, workunder construction, and construction and installation work completed but notused in operation. Construction in progress shall be accounted for separately andseparately disclosed in the balance sheet.Where the period of construction exceeds one year, and construction items arenumerous and construction cost is substantial, construction items may be accounted for separately.Construction in progress shall be accounted for on the following basis: Materials used in —— provisions set out inconstruction Article 23 of theseRegulations;Equipment to be installed —— provisions set out inArticle 30 of theseRegulations;payment on account to —— the actual amount paid;contractorsManagement expenses of —— the actual managementthe construction work expenses incurred;Construction work under- —— the direct materials,taken by the enterprise direct labour, directitself mechanicalwork expenses andattributablemanagementexpenses;Construction work under- —— the amount paid totaken by third party subcontractors andsubcontractors attributablemanagementexpenses;Installation of equipment —— the cost of equipmentincluding installationcharges, trial runexpensesand attributablemanagementexpenses.Equipment acquired or invested during the set-up period of the enterprise but not yet installed may also be accounted for as construction in progress. Article 34 Where there is spoilage or damage to the construction in progress, net losses resulting shall generally be accounted for as part of the cost of construction in progress after deduction of the residual value and compensation from person(s)causing such losses or from insurancecompanies. Netlosses arising from spoilage or damage as a result of extraordinary causes shallbe accounted for as pre-operating expenses if the construction is undertaken during the set-up period and accounted for as non-operating expenses if the assethas already been used in operation.Net expenses arising from trial runs before the asset is used in operation shall be accounted for as part of the cost of construction in progress. Where products produced during trial runs can be sold to third parties, the actual or estimated sale proceeds shall be deducted from the cost of construction in progress.Article 35 When the construction of an asset is completed and it is used in operation but the total cost of the asset is yet to be determined, the asset shall be transferred to fixed assets at the estimated value based on the budgetedprice or cost of the work, and shall be depreciated according to the provisions set out in Article 31 of these Regulations. The estimated value of the asset andits accumulated depreciation shall be adjusted for after the actual cost of the asset is ascertained.Chapter 7 Intangible and Other AssetsArticle 36 Intangible assets of enterprises with foreign investment include patents, proprietary technology, patents and trademarks, land occupancy rightsand other intangible assets, and shall be accounted for separately and separatelydisclosed in the balance sheet.Intangible assets contributed by the investors shall be accounted for at the amount specified in the contracts, agreements or the enterprise's application document for incorporation including related expenses borne by the enterprise. Intangible assets acquired by the enterprises shall be accounted for at cost. Article 37 Intangible assets shall be amortised by equal installments overthe beneficiary period from the time the enterprise starts deriving benefits from the intangible assets or, where there is no specified beneficiary period, over the estimated beneficiary period.Article 38 Other assets of enterprises with foreign investment include pre- operation expenses, exchange losses during the set-up period, deferred investmentlosses and other deferred expenses to be amortised by installments, and shall beaccounted for separately and separately disclosed in the balance sheet.Pre-operating expenses shall be accounted for based on cost incurred in relation to business registration fees, wages and salaries, business trip expenses, staff training expenses, expenses incurred by the board of directors(ora joint management committee. The same definition applies wherever reference ismade to the board of directors.)and other expenses not included in the purchaseor construction of fixed assets or intangible assets.Exchange losses during the set-up period shall be accounted for based on the amounts realized during the set-up period.Deferred investment losses shall be accounted for based on the difference between the appraised value and the book value of the investments. Deferred expenses shall be accounted for based on actual expenses incurred. Article 39 Other fixed assets shall be amortised on the following basis:Pre-operating expenses and —— by equal installmentsexchange losses during over a period of not lessthe set-up period than 5 years from the datethe enterprise commencesoperationDeferred investment losses —— by equal installmentsover the investmentperiod but not lessthan 10 yearsOther deferred expenses —— by equal installmentsover the estimatedbeneficiary period butnot less than 10 yearsChapter 8 Current Liabilities,Long Term Liabilities and Other LiabilitiesArticle 40 Current liabilities of enterprises with foreign investmentinclude short term borrowings, payables, deposits from customers (advance deposits ) and accrued expenses.Short term borrowings, deposits from customers (advance deposits)and accruedexpenses shall be accounted for separately. Payables shall be accounted for separately where appropriate as bills payable, accounts payable, accrued payroll,tax payable, dividend payable and other payables. Current liabilities denominatedin multi-currencies shall be individually accounted for in their originatingcurrencies.Staff and workers' bonus and welfare fund and other funds, which are liabilities in nature, shall be accounted for as current liabilities.Amounts payable after one year from the balance sheet date shall be separately disclosed under long term liabilities in the balance sheet.Article 41 Long term liabilities of enterprises with foreign investmentinclude long term borrowings, redeemable bonds and amounts payable under financeleases, and shall be accounted for separately and separately disclosed in the balance sheet.Long term liabilities repayable within one year from the balance sheet date shall be separately disclosed under current liabilities in the balance sheet. Article 42 Redeemable bonds shall be accounted for based on the face value of the bonds issued. The difference between the proceeds of issue and the facevalue of the bonds shall be accounted for as the premium of discount on issue andshall be accounted for separately and separately disclosed as an addition to or adeduction from the redeemable bonds account in the balance sheet. Accrued interest included in the proceeds of issue shall be accounted for as a temporaryreceipt and disclosed under other payables.Premium of discount on the issue of redeemable bonds shall be amortised by installments using the straight line method or effective interest method over theperiod to maturity of the bonds and shall be charged against the related interestexpenses.Handling charges paid to financial institutions which act as agents to the issue shall be accounted for as finance charges.Article 43 Other liabilities of enterprises with foreign investment include exchange difference during the set-up period and income derived from deferredinvestment, and s hall be accounted for in the “exchange difference during the set-up period”account and the “deferred investment losses”account respectively.Article 44 Interest accrued on liabilities shall be accounted for in the appropriate period at the actual interest rate paid.Interest directly related to fixed assets purchased or constructed shall be included in the purchase or construction cost of the assets before the assets areused in operation or before final accounting has been completed for assets already used in operation. Other interest shall be accounted for aspre-operatingexpenses during the set-up period and shall be accounted for as expenses of therelated accounting period after the enterprise has commenced operation. Chapter 9 Investors' EquityArticle 45 Investors' equity in enterprises with foreign investment include paid-in capital, capital reserve, general reserve, enterprise expansion fund andundistributed profits, and shall be accounted for separately and separately disclosed in the balance sheet.Article 46 Paid-in capital represents contributions by investors in accordance with the amount specified in the contracts, agreements or the enterprise's application document for incorporation.Contributions in the form of cash shall be accounted for at the amount actually deposited into the bank account of the enterprise.Contributions in the form of assets shall be accounted for at the amount specified in the contracts, agreements, the enterprise's application document forincorporation or statement of inspection and receipt of assets contributed. Contributions in the form of intangible assets shall be accounted for at theamount specified in the contracts, agreements or the enterprise's application document for incorporation.Where the paid-in capital booked does not agree with the amount stated in the certificate of paid-in capital reported by a certified public accountant in China, proper adjustment shall be made in accordance with the appropriate regulations.Article 47 Where capital contributed by investors requires translation intothe reporting currency, the amount debiting to the corresponding asset accountshall be translated in accordance with Article 61 of these Regulations, and the amount crediting to the paid-in capital account shall be translated at the foreign exchange rate specified in the agreement as quoted by the State Administration of Exchange Control(hereinafter this exchange rate is referred toas the “official foreign exchange rate”).Where the exchange rat e is not specified in the agreement, translation shall be made at the official foreign exchange rate quoted on the date when the contribution is received.Where enterprises translate the paid-in capital in foreign currency at the official foreign exchange rate quoted on the date when the contribution is received, and where the currency adopted at the time of registration of incorporation is different from the reporting currency, and where the capital is contributed at different times, the capital shall be translated at the officialforeign exchange rate prevailing on the date when the first contribution is received. Where the capital is contributed by installments, each amount receivedshall be translated at the official foreign exchange rate prevailing on the date of the first receipt.Exchange differences arising from the adoption of different exchange rates in the corresponding assets account and the paid-in capital account shall be dealtwith in the capital reserve account.Enterprises with foreign investment shall generally translate the paid-in capital account at the official foreign exchange rate quoted on the date when thecontribution is received.Article 48 Capital returned to investors by chinese-foreign cooperativejoint ventures in accordance with relevant laws and regulations during the periodof cooperation shall be accounted for separately and separately disclosed as adeduction under the paid-in capital account in the balance sheet.Article 49 Capital reserve includes donation reserve, exchange differences on the translation of capital and premium on capital.Donation reserve represents the increase in investors' equity arising fromthe receipt of a donation in cash or in the form of assets. A donation in cash shall be accounted for at the amount received. A donation in the form of assetsshall be accounted for at the amount stated in the invoice or, where there is no invoice, at the fair market price of a similar object available in China or overseas. Where assets donated are used fixed assets, they shall be accounted forat their original cost less estimated accumulated depreciation.Exchange differences on the translation of capital represent exchange differences arising from the adoption of different exchange rates in the corresponding assets account and the paid-in capital account referred to in Article 47 of these Regulations.Premium on capital represents the excess amount contributed by investors overthe amount of the registered capital.Chapter 10 Cost and ExpensesArticle 50 Material consumption, labour cost and all other expensesincurred during operation shall be accounted for as cost of sales or expenses. Raw materials consumed by the enterprise during operation shall be accountedfor as cost of sales or expenses based on actual quantities consumed and the bookunit prices.Accrued payroll shall be accounted for as cost of sales or expenses based on specific pay scale, ways of remuneration, bonuses and allowances schemes, workinghours and production volume. Payments in relation to social welfare insurance,retirement benefits schemes, unemployment insurance schemes, housing allowanceand various allowances payable by the State, to employees from the Chinese partyshall be accounted for as wages and salaries and be included in cost of sales orexpenses.Other expenses incurred during operations shall be accounted for as cost of sales or expenses at the amount actually incurred. Expenses attributable to thecurrent accounting period but not yet paid shall be accrued for as cost of sales of expense of the period. Expenses paid but attributable to the current and subsequent accounting periods shall be accounted for as deferred charges or deferred expenses and shall be charged by installment to cost of sales ofexpenses.Article 51 Enterprises with foreign investment shall accumulate allexpenses incurred during operation into the relevant cost items or expense items.1.The direct cost of production of industrial enterprises include direct materials, direct labour and production over heads. Enterprises may, based onactual requirements, separately account for items such as fuel and power, subcontracting charges, special purpses tools and others.Direct materials represent raw materials and semi-finished goods which can bedirectly taken into product cost.Direct labour represents the wages of those workers who are directly engaged in production.Production overheads represent expenses incurred by the workshop or the factory management department in organising and managing production and includewages, depreciation charges, maintenance expenses, materials consumed, amortisation of low-value consumables, labour protection expenses, water andelectricity charges, office expenses, travelling expenses, transportation charges,insurance expenses, rental expenses, design and drawing expenses, experimentaland inspection expenses, environmental protection expenses and inventory losses(less gains).Expense items of industrial enterprises include selling expenses, general and administrative expenses and financial expenses which shall not be taken into thedirect cost of production but accounted for separately as expenses of the currentaccounting period and separately disclosed in the income statement.Selling expenses are expenses incurred by the enterprise during the selling activities and include transportation charges, loading and unloading expenses,packaging expenses insurance expenses, sales commission, handling charges paid tosales agents, advertising expenses, rental expenses and sales services charges.Selling expenses also include operating expenses of the sales department, such assalaries and wages, business trip expenses, depreciation charges, maintenanceexpenses, office expenses, materials consumed, amortisation of low-valuedconsumables and other expenses.General and administrative expenses include general office expenses, labour union expenses, expenses incurred by the board of directors, consulting fees, legal fees, entertainment expenses, taxes(including urban real estate tax and license tax for vehicles and vessels),property rental charges, technology transfer fees, amortisation of intangible assets, amortisation of other assets, bad debts written off, staff training expenses, research and development expensesand other general and administrative expenses.Financial expenses include interest expenses(less interest income),exchange losses(less exchange gains),handling fees charged by financial institutions andother expenses incurred in financial operations.2.Expenses incurred by commercial enterprises during operation include purchase expenses, selling expenses, general and administrative expenses andfinancial expenses.Purchase expenses include transportation charges, loading and unloading expenses, packaging expenses and insurance expenses incurred during the purchasing process, normal losses in transit and sorting and material handling expenses incurred before warehousing.General and administrative expenses are expenses incurred during storageandexpenses incurred by the management department of the enterprise, and includesalaries and wages, depreciation charges, maintenance expenses, materials consumed, amortisation of low-value consumables, labour protection expenses,water and electricity charges, office expenses, business trip expenses, transportation charges, insurance expenses, rental expenses, inventory losses(less gains),labour union expenses, expenses incurred by the board of directors,consulting fees, legal fees, entertainment expenses, taxes(including urban realestate tax and license tax for vehicles and vessels),property rental charges, amortisation of intangible and other assets, bad debts written off, staff training expenses and other general and administrative expenses.Selling expenses and financial expenses are similar to those of industrial enterprises.3.Expenses incurred by servicing enterprises during operation include operating expenses, general and administrative expenses and financial expenses.Operating expenses include expenses incurred during operation and may becategorised into different types in accordance with services provided. General and administrative expenses include expenses incurred in the management of the enterprise.Financial expenses are similar to those of industrial enterprises.4.Expenses incurred by other enterprises may be dealt with in the similar manner provided above.Article 52 Sample products and equipment produced in trial runs during product development of an industrial enterprise shall be accounted for as cost ofsales and be separately booked if these products and equipment can be sold or,where these products and equipment cannot be sold, the costs for producing suchproducts and equipment shall be included in general and administrative expensesor product cost, on commencement of production, after deduction of the residualvalue.。