政府补助在实务中的风险防范 英文版

Risk Prevention in Government Grants’ Practical Treatment

Youjiao Hu1

North China Electric Power University, baoding

071003

Yongchen Li2

North China Electric Power University, baoding

071003

Abstract-Government grants are monetary or non-monetary assets free to obtain from the

government. In our current criteria, government

subsidies to get are recognized as income by

enterprises. However, we find there are hidden

risks in practice treatment due to the lack of

standardized business processing for government

subsidies. This paper points out hidden risks in

order to strengthen enterprises’ awareness of

dealing with government subsidies practice

treatment of the future more scientific,

standardized, rational, avoiding placing

unnecessary troubles and losses.

Keywords-government grants , risks

I.R ELEVANT P ROVISIONS OF

G OVERNMENT G RANTS UNDER

THE N EW G UIDELINESS The main forms of government grants are financial allocations, interest subsidy, tax rebates and free transfer of non-monetary assets. Our governme nt grant’ criteria requires the recognition and measurement of income approach, divided into two categories government grants related to assets and government grants related to income.

Government grants related to assets are government grants which are obtained by the enterprise for the construction or formation in other forms long-term assets. The measurement principles: government grants related to assets which are obtained by enterprises, can not be directly recognized as current income ,but should be recognized as deferred income. From the time relevant assets are available, asset allocation under the average life is included after graded phases of the operating income.

In addition, when the related assets using the proceeds before the end or the end of life are sold, transferred, scrapped or damaged ,not assigned deferred balance should one-time be transferred to operating income of assets’ current disposal.

Government grants related to income, is defined in the related to assets other than government grants. The measurement principles: government grants related to income obtained by the enterprise are used as compensation for business expenses or losses in subsequent periods, made when the first recognized as deferred income, and then confirm the related costs included in the current period operating income; As the compensation for business expenses or losses that have occurred, and get taken directly to current operating income.

II.G OVERNMENT G RANTS

D IFFERENTS B ETWEEN

A CCOUNTING AND T AX

T REATMENT

A.before the promulgation of the new

Enterprise Income Tax Law

Ministry of Finance and State Administration of Taxation, ‘Income tax on corpora te subsidies and other issues,’(Cai Shui [1995] No. 81) provides that, state financial subsidies and other subsidy income obtained by enterprises, in addition to the State Council, Ministry of Finance and State Administration of Taxation excluding profit and loss provisions, should be incorporated into taxable income for the year of the actual receipt of the subsidy income.

2010 Third International Conference on Education Technology and Training (ETT)

978-1-4244-9659-4/10/$26.00 ©2010 IEEE ETT2010