Difference Between Adjusting Entries and Offsetting Entries, Difference Between Tax exempt Consolida

The difference between an adjustment entry and an offsetting entry is as follows:

1. The influencing factors are different.

Adjusting entries is an important factor that directly affects the size of the market capacity.

On the one hand, the offsetting entries are subject to the influence of macroeconomic conditions, and on the other hand, they are affected by the national income distribution policy and consumption policy, and the artificial profit rate directly determines the level of consumer purchasing power.

2. The scope of inclusion is different.

Adjusting entries include: the wages of administrative and technical personnel, personnel who procure, store and drive various machinery and vehicles, handling and unloading workers before materials arrive at the site warehouse, full-time trade union personnel, medical personnel and other personnel who are paid by construction management fees or non-operating expenses.

The offsetting entries include: income obtained by individuals engaged in design, decoration, installation, drawing and laboratory, testing, medical treatment, law, accounting, consulting, lecturing, news, broadcasting, translation, auditing, calligraphy and painting, engraving, film and television, audio and video recording, performance, performance, advertising, exhibition, technical services, introduction services, brokerage services, agency services and other services.

The differences between tax-exempt consolidation and taxable consolidation are as follows:

1. The regulatory authorities are different.

Tax-exempt mergers are approved and supervised by the CBRC, and only leasing companies approved by them can be named cost.

Taxable consolidation of borrowing (short-term) funds from the financial market does not involve the size of the credit, but involves the funds or credit of the public's deposits, so the amount of leasing transactions (in order to prevent the systemic risk caused by the long-term use of short-term funds) should be included in the strict management of credit scale. As a result, the leasing company is supervised as a lending department.

2. The service objects are different.

The tax-free combination is mainly applicable to the payment and transfer of daily consumption for individuals and families. Customers can complete real-time inquiry, transfer, online payment and remittance functions through personal internet banking services. The emergence of personal online banking services marks the direct extension of the bank's business tentacles to the home PC desktop of individual customers for easy use, which truly reflects the style of family banking.

Taxable consolidation is mainly aimed at enterprises and institutions such as enterprises and ** departments. Enterprises and institutions can understand the financial operation of enterprises in real time through corporate online banking services, allocate funds within the organization in a timely manner, easily handle large quantities of online payment and payroll business, and handle L/C-related business.

Encyclopedia - Adjusting Entries.

Encyclopedia - Offsetting entries.

Encyclopedia - Tax-free merger.

Encyclopedia - Taxable consolidation.

Tax-exempt consolidation is considered from a tax point of view, and if it is in line with special tax restructuring, special tax restructuring can be used as a tax-exempt merger, then in the process of consolidation, the assets are recorded at book value, and there is no problem of tax payment and deferred income tax treatment. There are five conditions for qualifying for special tax treatment: 1. The restructuring is not for the purpose of tax avoidance.

2. The restructuring accounts for more than 75% of the net assets of the acquired enterprise. 3. The acquired enterprise guarantees that it will not change its main business within 12 months, and more than % of the assets used for acquisition are equity. 5. Obtain the equity used for the acquisition and ensure that the main business will not be changed within 12 months.

Hope it works for you.

Adjusting entries are records of implied transactions at the end of the period, and each adjusting entry includes the recognition of revenue or expenses.

An offsetting entry is an offsetting entry in a consolidated accounting statement, which refers to an adjustment entry made to the relevant items that should be offset when preparing the consolidated accounting statements.

In accordance with the provisions of the Notice of the State Administration of Taxation on Income Tax Issues Related to Business Mergers and Acquisitions (GSF No. 2000119), in the income tax treatment of business combinations, if the non-equity payment paid by the merged enterprise to the merged enterprise does not exceed 20% of the book value of the equity, it can be treated as a tax-free merger with the approval of the tax department, that is, the merged enterprise does not recognize the income or loss from the transfer of all assets, and does not calculate and pay income tax. In addition, if the losses of the merged enterprise in previous years have not exceeded the statutory time limit for making up for it, the merged enterprise may continue to make up for it with the income related to the assets of the merged enterprise realized in the following years in accordance with the regulations.

Taxable consolidation means that under normal circumstances, the merged enterprise shall be deemed to transfer and dispose of all assets at fair value, calculate the income from the transfer of assets, pay income tax in accordance with the law, and the tax basis may be determined according to the value confirmed by the appraisal when the merged enterprise accepts the tax calculation of the relevant assets of the merged enterprise.

Special circumstances: 1. Its shareholders should be treated with income tax according to liquidation;

2. The losses of the merged enterprise shall not be in the merged enterprise.

Consolidated offsetting of input tax entries 1, offsetting the relevant statement item data is the main role of consolidating offset entries.

On the basis of this feature, it is possible to determine the specific items involved in the borrower of the consolidated offsetting entries in combination with the nature of the statement items, and the direction of borrowing to offset the statement items will not be misplaced.

2. The difference between consolidated offsetting entries and ordinary entries is that they do not need to be posted, and will not lead to changes in the data of financial-related items in the current period and other individual periods in the future. The reflection of internal transactions in the individual financial statements in the preparation of the consolidated financial statements and the offsetting entries is consistent with the reflection in the consolidated financial statements, and this situation has little to do with the adjustment of the individual financial statements provided by the parent company and the subsidiaries.

3. When merging, you will find that the merger offset entries offset the statement items rather than the specific accounts when doing the accounts as usual. If the name of the item in the accounting statement is not exactly the same as the name of the corresponding account, the credit and debit should use the corresponding name of the statement item when preparing the consolidated offset entries.

If there is a discrepancy between the report item name and the account name, the report item name must be used. For example, in the preparation of consolidated offset entries, the names of the items in the report statement such as "inventory", "original price of fixed assets", "undistributed profits", and "withdrawal of surplus reserves" are used instead of account names such as "raw materials", "bank deposits", "inventory goods", "fixed assets", and "profit distribution".

Difference Between Offsetting Entries and Adjusting Entries in Consolidated Financial Statements:

Adjusting the entries, that is, adjusting the calendar records of individual reports to the approved caliber of consolidated statements.

If an individual statement makes a provision for inventory decline of 1 million, but it needs to be provided for 1.2 million from a consolidated perspective, then it is necessary to make an adjustment entry to adjust the 1 million yuan of the individual statement to the 1.2 million recognized by the consolidated statement.

Offsetting entries is to offset the entries in individual statements, which is not recognized in the consolidated statements, so it needs to be offset.

Some individual statements have made a provision for impairment of 1 million, but the consolidated statements do not believe that there is no need to make a provision, so they need to be offset.

To be precise, the adjustment entry is an adjustment to the single table before the merger so that the table within the scope of consolidation meets the unified requirements of the merger (see the prerequisites for merger for details).

Set-off is the set-off of internal transactions during the merger process.

Borrow: Long-term equity investment - change in other equity 40

Credit: Capital Reserve - Other Capital Reserve 40

Borrow: Long-term Equity Investments - Profit and Loss Adjustment 404

Credit: Investment Income 404 Borrow: Dividends Receivable 20

Credit: Long-term Equity Investments - Profit and Loss Adjustment 20

Long-term equity investment balance: 404 + 40-20 = 424 borrow: bank deposits.

Credit: Long-term Equity Investment - Cost.

Profit and loss adjustments. Changes in other benefits are omitted above.

I'll take a closer look at this question and give you the answer tomorrow. Excuse me.