What is the percentage of provision for bad debts in other receivables?

The proportion of allowable pre-tax deductions is different from the concept of bad debt reserves made by enterprises themselves. The scope of provision for bad debts of domestic enterprises in accordance with the Guo Shui Fa [2003] No. 45 document "Notice on the Implementation of the Accounting System for Business Enterprises on Income Tax Issues Requiring Clarification" is consistent with the accounting system, including accounts receivable and other receivables, and the proportion is still the same. For foreign-funded enterprises, it is stipulated:

Enterprises engaged in the credit and leasing industries and foreign-funded enterprises engaged in loan guarantee business may, according to actual needs, make provision for bad debts at 3% of the balance of accounts receivable and notes receivable at the end of the year after submitting for approval (except that loans secured by various properties are not subject to bad debt reserves). In general, no provision for bad debts is made for other enterprises. If the tax accrual requirement is exceeded, the income tax adjustment shall be made before the income tax final settlement date.

Otherwise, during the annual inspection, it may be required to be adjusted by the auditors of the firm, or investigated and punished by the tax authorities.

When the accounts receivable have not been collected beyond the collection period, a provision for bad debts can be made. However, the regulations are different for each enterprise, and the state has not made substantive regulations. Generally, 1-30 days overdue is not accrued, 31-60 days overdue, 50% overdue, 30% overdue, 50% overdue, 50% overdue, 100% overdue, 100% overdue

Enterprises are generally accrued at the rate of accrual, and foreign-funded enterprises engaged in the leasing industry and loan guarantee business are accrued at 3%.

The provision ratio for bad debts is formulated by the company's accounting policy, which is generally formulated according to the actual situation of the company and according to the aging analysis, such as 5% within one year, 20% in one to two years, 50% in two to three years, and 100% in more than three years. However, the amount of bad debt losses that can be deducted according to the tax law: bad debts written off - bad debts written off in previous years + (balance of receivables at the end of the year - balance of receivables at the beginning of the year) 5.

Extended information] Bad debt loss refers to the uncollected accounts receivable of the enterprise, which has been approved for inclusion in the loss. Enterprises that have withdrawn bad debt provisions also reflect in this account that when bad debts occur, they will directly offset bad debt provisions. Enterprises that do not make provision for bad debts shall directly account for bad debts in this account when bad debts occur.

The bad debt loss of the enterprise shall be confirmed in accordance with the provisions of the Notice of the Ministry of Finance on Establishing and Improving the Management System of Enterprise Receivables (Cai Qi [2002] No. 513). Bad debt losses and their accounting are an important aspect of accounts receivable accounting. As the name suggests, bad debt loss refers to the loss due to bad debts, so to understand bad debt losses and their accounting, we must first start from what bad debts are.

The conditions for when an account receivable can be recognized as bad are usually given by accounting standards or systems. No matter how the accounting standards or systems change, in accounting practice, the recognition of bad debts should follow the basic objectives of financial reporting and the general principles of accounting, and try to be true, accurate and in line with the reality of the unit. Generally speaking, accounts receivable should be recognized as bad debts if they meet one of the following conditions:

1.Accounts that cannot be recovered after the debtor's death has been paid off by his estate;

2.If the debtor goes bankrupt, the debtor is still unable to recover the accounts after the bankruptcy estate is settled;

3.The debtor has not fulfilled its debt repayment obligations for an extended period of time and there is sufficient evidence that it is impossible to collect or the accounts are unlikely to be recovered.

Each of the above three conditions is a sufficient condition, and the third condition requires the accountant to make a professional judgment. China's current system stipulates that the right to decide the bad debt loss of a listed company lies with the company's board of directors or shareholders' general meeting.

Accounts receivable within the year.

The proportion of bad debt provision varies according to the actual situation of each company.

The proportion of bad debt provision for accounts receivable within one year is generally 3%-5%.

Bad debt provision refers to the bills receivable, accounts receivable, prepaid accounts and other receivables that are expected to be irrecoverable.

Provisions for bad debts drawn from long-term receivables and other receivables and other receivables.

The method of making provision for bad debts shall be reasonably estimated by the enterprise based on historical experience, the financial situation of the debtor unit and relevant information, and the proposed omission and withdrawal ratio shall be approved by the board of directors of the enterprise.

The provision for bad debts is 5%.

The method of making provision for bad debts is determined by the enterprise itself. The enterprise shall list a catalogue, specifically indicating the scope of provision for bad debts, the method of withering and withering prudently, the division of aging and the proportion of withdrawal, and in accordance with the management authority, with the approval of the general meeting of shareholders or the board of directors, or the meeting of managers (factory directors) or similar institutions, and in accordance with the provisions of laws and administrative regulations, it shall be reported to the relevant parties for the record, and shall be placed at the location of the company for investors' reference.

Once the method of drawing bad debt provision is determined, it shall not be changed at will. If there is a need for change, it should still be submitted to the relevant parties for the record after approval in accordance with the above procedures, and explained in the notes to the accounting statements.

Generally, according to the actual situation of the company, it is formulated according to the aging analysis, such as 5% within one year, 20% in one to two years, 50% in two to three years, and 100% in more than three years.

However, the amount of bad debt losses that can be deducted according to the tax law: bad debts written off - bad debts written off in previous years + (balance of receivables at the end of the year - balance of receivables at the beginning of the year) 5.

Within one year, accounts receivable bad debts are allowed to make a spine provision, and the proportion of provision is 3%-5%.

The meaning of "bad debt provision":

The significance of setting a "bad debt provision" mainly reflects the application of the principle of prudence.

The principle of accounting prudence is an important principle in enterprise accounting, which is widely used to prevent the increase of assets and earnings, the reduction of liabilities and expenses, and the role of early warning and mitigation of risks. However, in practice, there is a phenomenon of using the principle of prudence to manipulate profits, so it is necessary to take necessary measures to pursue the advantages and disadvantages and make the accounting information more objective.

According to the principle of prudence, the accounts receivable of an enterprise should be based on the value that can be realized in the future, and the possible bad debt losses should be estimated and recorded.

At present, China's accounting practice stipulates that only the percentage method of accounts receivable can be used, that is, enterprises can make bad debt reserves at the end of the year according to 3%-5% of the balance of accounts receivable at the end of the year, which is included in management expenses to form bad debt provisions.