Operating profit should not include investment gains and asset impairment losses

This statement is incorrect, and operating profit includes investment income and asset impairment losses.

Operating profit is the result of the most basic business activities of an enterprise, and it is also the most important and stable profit obtained by an enterprise in a certain period. In 2006, the Ministry of Finance promulgated the New Accounting Standards for Business Enterprises - No. 30 in the presentation of financial statements, the operating profit has been adjusted, the investment income has been transferred to the operating profit, and the reference to the main business profit and other business profits has been cancelled, and the subsidy income has been merged into the non-operating income, and the operating profit minus the adjustment of non-operating income and expenditure has obtained the total profit.

The formula for calculating operating profit is: operating profit, operating income, operating costs, business taxes and surcharges, period expenses, asset impairment losses, fair value change gains, fair value change losses, and investment income (investment losses).

Incorrect. 1. Operating income.

Less: Operating costs.

Sales tax and surcharges.

Selling Expenses Administrative Expenses.

Financial Expense Asset impairment loss.

Add: Fair value change gain (loss is listed with "-") Investment income (loss is listed with "-").

Among them: investment income in associates and joint ventures.

2. Operating profit (loss is listed with "-").

Plus: Non-operating income.

Less: Non-operating expenses.

Among them: loss on disposal of non-current assets.

3. Total profit (the total loss is listed with a "-" sign).

Less: Income tax expense.

4. Net profit (net loss is listed with "-").

In the old accounting standard, operating profit did not include investment income and asset impairment losses, and in the new accounting standard, operating profit includes investment income and asset impairment losses.

Attached: New Profit ** Formula.

1. Operating income.

Less: Operating costs.

Sales tax and surcharges.

Selling expenses. Management fees.

Finance Expenses. Asset impairment losses.

Add: Fair value change gain (loss is listed with "-") Investment income (loss is listed with "-").

Among them: investment income in associates and joint ventures.

2. Operating profit (loss is listed with "-").

Plus: Non-operating income.

Less: Non-operating expenses.

Among them: loss on disposal of non-current assets.

3. Total profit (the total loss is listed with a "-" sign).

Less: Income tax expense.

4. Net profit (net loss is listed with "-").

Asset impairment losses.

It will affect operating profit.

Profit from sales. It is the profit realized by the enterprise in all its sales business, which includes the profit of the main business. Sales profit is always the goal of business and economic activities, without enough profits can not continue to survive enterprises, without enough profits, enterprises can not continue to expand and develop.

Many business owners are at a loss in the face of fierce competition in the market and ultra-low profit product sales. But if the price is not reduced, the product cannot be sold, and the company can not survive. Sales profit is the main profit of the enterprise, and the sales profit is mainly composed of operating income.

Operating costs, period expenses.

Asset impairment losses, net gains on fair value changes.

Composition of net investment income.

Profit is the business result of the entrepreneur, the comprehensive reflection of the business effect of the enterprise, and the concrete embodiment of its final result. The essence of profit is the first form of expression of enterprise profit, is the labor performance of all employees, and the enterprise produces high-quality commodities for the market and obtains profits, and surplus value.

In contrast to profits, which are not only qualitatively the same, but also quantitatively equal, profit differs only in the case of surplus value in respect of variable capital and in respect of all costs. Thus, once earnings are converted into profits, the origin of profits and the material production they reflect are earned, and thus there are many forms of earnings. In a capitalist society, the essence of profit is:

It is a product of capital, which has nothing to do with labor, profit is the life of capital, and capital pursues the maximization of profits.

Asset impairment refers to the fact that the recoverable amount of an asset is less than its carrying amount. The assets here, unless otherwise specified, include individual assets and asset groups. The term "asset group" refers to the smallest asset portfolio that an enterprise can identify, and the cash inflow generated by it should be basically independent of the cash inflow generated by other assets or asset groups.

Summary. Hello, glad to answer for you. Asset impairment losses are represented in other operating income:

This entry generally appears in the accounting treatment of financial assets, because it is continuous, and other comprehensive income that has temporarily entered the debit side before it is transferred out, and this step is to transfer out other comprehensive income into asset impairment.

Hello, it's a pleasure to answer for you. Asset impairment loss represents in other operating income: the entry generally appears in the accounting treatment of financial assets, due to the lack of continuous **, before the temporary discrepancy of other comprehensive income into the debit to be transferred out, this step is to transfer out other comprehensive income into asset impairment.

For example, the fair value of the financial assets available for ** has changed, but the impairment has not yet reached the bureau to make the following entries: borrow: its orange to do his comprehensive income 1 credit: available for ** Jinyuan Laheng financing property 1

In the event of impairment on a certain day, Zhengnaran needs to transfer the other comprehensive income previously recognized to the impairment loss account of the company: asset impairment loss 5 credit: available for ** financial assets - fair value change 4 other comprehensive income 1

Combining the above two entries to break the knowledge and see the bridge, we can get the other comprehensive source sales = 1-1 = 0 asset impairment loss = 5 available for ** financial assets = -1-4 = -5

The accounting entries will appear in the financial assets equity instruments that can be used for impairment after the provision is reversed, for example, the enterprise obtains some **, Hu Quezao because the purpose of holding is not **investment, so it is divided into financial assets.

In order to avoid the manipulation of profits by enterprises, the fair value changes that can be used for the judgment of Zirong are generally included in other comprehensive income, and if the price is very strong in the later stage, the fair value of a small amount of financial assets that can be provided before needs to be included in the current profit and loss by other comprehensive income, that is, asset impairment losses.

This accounting entry actually reflects the process of including the owner's equity in the current profit or loss when the fair value changes.

Gains and losses on disposal of assets fall under the category of operating profit

Gains and losses on disposal of assets are the profits or losses incurred by a business when it disposes of assets. These assets can be fixed assets, intangible assets, long-term investments, etc. The profit or loss on disposal of assets is a very important indicator in the financial statements of a business, as it directly affects the profit level and profitability of the enterprise.

When an enterprise disposes of an asset, if the transaction price is higher than the original cost or book value, then the enterprise will receive an asset disposal gain, on the contrary, if the transaction price is lower than the original cost or book value, then the enterprise will incur an asset disposal loss. The cost of an asset includes the cost of acquisition and related expenses in the later stage, such as depreciation, maintenance, etc.

Gains and losses on the disposal of assets are included in the company's income statement. Since these gains and losses are non-recurring, they are included in the non-recurring profit or loss in the income statement. This means that they are different from the gains and losses of regular business activities, such as profits from the sale of products or the provision of services.

The profit and loss from asset disposal has a great impact on the financial condition and operating performance of the enterprise. On the one hand, it directly affects the profits and performance of enterprises, so enterprises need to dispose of assets according to market demand and development strategies to strive for as much income as possible.

On the other hand, the profit or loss on asset disposal can also reflect the operation and management ability of the enterprise. If the profit or loss on the disposal of assets of the enterprise has been negative, it means that the enterprise is not well managed or the market environment is relatively poor, and active measures need to be taken to improve.

The manner in which the asset is disposed of

1. Assets: It is the most common way to dispose of assets. Enterprises can give their assets to other enterprises or individuals through public bidding, bidding, direct negotiation, etc.

2. Asset replacement: It is the behavior of an enterprise exchanging one asset under its name for another asset. Common asset swap methods include asset swaps, asset swaps, and equity transfers.

3. Leasing: Enterprises can obtain economic benefits by leasing their own assets. Leases can take the form of long-term leases, short-term leases, and operating leases, among others.

4. Mortgage: Enterprises can mortgage their assets to obtain economic benefits, which is more common in the financing of enterprises.

The loss of the impairment loss of assets will lead to a decrease in operating profit, which in turn will lead to the impact of total profit and net profit.

It can be understood more clearly from the formula for calculating each profit:

Operating profit = operating income Operating costs Taxes and surcharges Selling expenses Administrative expenses Financial expenses Asset impairment loss Credit impairment loss + fair value change gain (fair value change envy mitigation loss) + investment income (investment loss) + asset disposal gain (- asset disposal loss) + other income, total profit = operating profit + non-operating income - non-operating expenses, net profit = total profit - income tax.

Asset impairment losses had an impact on Tangerine's operating profit and total profit.

Asset impairment loss refers to the loss caused by the carrying amount of the asset being higher than the recoverable amount of the rounded shed.

Asset impairment losses are profit and loss accounts in accounting.

Asset impairment loss accounting: The enterprise accrues the loss caused by the provision for asset impairment in accordance with the asset impairment and other standards. If the impairment of an asset is determined according to the criteria of asset impairment, this account shall be debited according to the amount that should be written down, and the asset impairment loss = the book value of the asset - the recoverable amount of the asset.

Answer]: "C Asset impairment loss" accounts for the loss caused by the enterprise's provision for impairment of various air-damaged assets. However, if the inventory loss of raw materials cannot be ascertained, the net loss after deducting the compensation and net residual value shall be recorded in the account of "management expenses", and the net loss after deducting compensation and net residual value of abnormal losses shall be recorded in the account of "non-operating expenses"; The net loss on disposal of intangible assets should be recorded in the "non-operating expenses" account.

For cash shortfalls for which the reason cannot be ascertained, the "Management Expenses" account of the person should be credited.

Answer]: Option B A should be included in administrative expenses or non-operating expenses, Option C should be included in credit impairment losses, and Option D should be included in the gains or losses on the disposal of assets or non-operating expenses.