Does profit only include capital reserve and non operating income?

1. Profits do not only include capital reserves and non-operating income.

2. The profits also include:

1.Gains directly credited to owners' equity;

2.Gains directly included in the profit for the period;

3.Gains arising from changes in the fair value of financial assets;

4.The difference between the fair value of owner-occupied real estate or inventory converted to investment real estate measured using the fair value model on the date of conversion and the original book value.

3. Profit refers to the inflow of economic benefits formed by the non-routine activities of the enterprise, which will lead to an increase in the owner's equity and have nothing to do with the owner's capital investment. Gains do not necessarily affect profits, such as gains included in owners' equity. However, whether it is a gain directly included in the current profit or loss or a gain directly included in the owner's equity, it will eventually lead to an increase in the owner's equity.

1.There are two types of gains and losses:

One is the gain or loss that is directly credited to the owner's equity; One is the gain or loss that is directly included in the current profit.

Gains or losses can involve a lot of business

1) The gains or losses included in the current profit include the following businesses: inventory losses, extraordinary losses, public welfare donation expenses, inventory profits, subsidies, donation gains, gains or losses from the disposal of non-current assets, gains or losses from the exchange of non-monetary assets, gains or losses from debt restructuring, etc.

2.）.Generally, the gains or losses included in the current profit are accounted for by the accounts of "non-operating income" and "non-operating expenses".

2.The gains or losses included in the owner's equity are generally accounted for by the "capital reserve" account, and the common business includes the change in the fair value of the financial assets available for **, and the capital reserve increased or decreased by the investor according to the share when the change in the equity of the investee other than the net profit or loss changes.

No, the profit capital reserve credited to the owner's equity - other capital reserve. Losses and gains recorded in profit refer to non-operating expenses and non-operating income.

Directly included in the capital reserve - the gains from other capital reserves will not affect the income statement in the current period, but when the assets are disposed of, this part of the capital reserve will be transferred to investment income, thus affecting the profit.

Gains and losses directly charged to owners' equity.

If there is a change in the investee's other rights and interests (capital reserve) under the equity method, the investor shall also recognize the capital reserve on a pro rata basis;

equity-settled share-based payments;

investment real estate measured on the conversion of owner-occupied real estate to a fair value model;

Gains or losses arising from changes in the value of financial assets, exchange differences and reclassifications;

Gains and losses that are directly included in the current profit.

1) Non-operating income.

2) Non-operating expenses.

gains on disposal of non-current assets (fixed assets, intangible assets, construction in progress); loss on disposal of non-current assets (fixed assets, intangible assets, construction in progress);

Cash orders where the reason cannot be ascertained; loss of inventory due to extraordinary reasons;

Debt restructuring gains; debt restructuring losses;

Donation Profits;

Generally, gains and losses are included in the current profit or loss, such as the disposal of fixed assets, gains and losses on intangible assets, etc.

Some gains and losses are included in the capital reserve, such as the change in the fair value of the financial assets available for **, such as the book and fair difference between the conversion of self-used real estate into investment real estate, and the change in the book value of long-term equity investment in the nature of non-investment income under the equity method, all of which are included in the capital reserve.

Enterprises should set up a "capital reserve" account to account for the increase or decrease of capital reserve. In order to reflect the increase or decrease of various types of capital reserves, detailed accounts such as "capital (or equity) premium", "provision for non-cash assets receiving donations", "provision for equity investment", "transfer of appropriations", "difference in translation of foreign currency capital", "difference in related party transactions" and "other capital reserve" should be set up according to the type of capital reserve. Capital (or equity) premiums, transfer-ins of appropriations, differences in foreign currency capital translation and other capital reserves can be used directly to increase capital (or share capital); The non-cash asset reserve and equity investment reserve for accepting donations can be used to increase capital (or share capital) after being transferred to other capital reserves; The difference in the price of related party transactions cannot be used to increase capital (or share capital) and make up for losses, and will be handled when the listed company is liquidated.

Once the reserve for non-cash assets received from donations is transferred to other capital reserves, this part of the capital reserves can be used to increase capital. The acceptance of donations of non-cash assets and the disposal of non-cash assets received by donations should also be accounted for accordingly when income tax is involved. The equity investment reserve cannot be directly used to increase capital, and only after it is transferred to other capital reserves, this part of the capital reserve can be used to increase capital.

Non-cash assets received as donations should be gains and losses recorded in profit or loss for the period. Can I understand it this way? The depreciation of the difference in the translation of foreign currency capital is a loss recorded in the capital reserve. Is that right.

1. The amount invested by shareholders is consistent with the amount specified in the business license is the paid-in capital, and the amount exceeding the paid-in capital is the capital reserve.

2. Non-operating income is the inflow of benefits generated by projects outside the business scope specified in the business license, such as the collection of fines or the income from the liquidation of the balance of accounts payable.

3. Profit is the income inflow directly included in the owner's equity, that is, the capital reserve account, and the current new standard has a very small scope, and the original scope is very large. Now I don't give an example, because there are so few, the original items are all classified as non-operating income.

Is it okay to say that?

Paid-up capital Lender 1Accept investment from investors2The surplus reserve and capital reserve are converted into increased capital, and the balance credit represents the actual amount of capital deposited

A debit is a capital reduction in accordance with the legal procedure.

Capital Reserve Lender 1Capital premium 2Equity premium 3The foreign currency capital translation difference debit is expressed as 1Conversion of capital 2Conversion Difference of Outbound Capital There is no balance at the end of the month

Non-operating income For example, the income of the cloth factory company from the sale of waste fabrics increases the capital, and the more non-operating income, the greater the company's profits

Paid-up capital is the paid-up capital that a company receives from investors (a joint-stock company calls it share capital).

Capital reserve is the part of the capital contribution received by an enterprise from investors in excess of its share of the registered capital or share capital. Gains and losses directly credited to owners' equity are also accounted for.

Non-operating income mainly includes gains from the disposal of non-current assets, gains from the exchange of non-monetary assets, gains from debt restructuring, profits from subsidies, gains from donations, etc.

Profit is the formation of non-ordinary activities that lead to an increase in the owner's equity, and the inflow of economic benefits that are not related to the capital invested by the owner.

Operating income refers to the total inflow of economic benefits formed by daily activities that will lead to an increase in the owner's equity and are not related to the capital invested by the owner.

Paid-in capital is the actual amount of capital contribution payable, and capital reserve are two concepts, capital reserve refers to the capital or assets of investors or other people to the enterprise, the ownership belongs to the investor, and the amount exceeds the authorized capital; The difference between business income and profit is the relationship between the income from the sale of goods and the provision of services and the net income obtained in the end.

Paid-in capital is the money invested, and paid-in reserve is the capital converted from capital reserve.

For example, the changes in the fair value of financial assets can be included in the capital reserve, the capital reserve recognized by the long-term equity investment under the equity method according to the changes in the capital reserve of the investee, etc., are included in the capital reserve;

Non-operating income and expenditure matters, such as the acceptance of donation letters and external donations, abnormal losses incurred by enterprises, fixed assets and other matters, are all matters that we are often familiar with.

These matters do not belong to the income category of the enterprise, but belong to the category of gains and losses, in fact, they are not so complicated, and there is no problem if you understand them.