Non operating income is not classified as income, why?

Non-operating income does not belong to the category of income, look at the definition of income and non-operating income to know why, income is formed in the daily activities of the enterprise, the latter does not need to be expense ratio, can be understood as profits.

Income refers to the total inflow of economic interests formed by an enterprise in its daily activities, which will lead to an increase in the owner's equity and have nothing to do with the owner's invested capital. This kind of total flow is manifested in the increase of enterprise assets or the repayment of debts, including main business income, other business income and net investment income. The main business income is the income obtained from the basic business activities of the enterprise, such as the product sales revenue of industrial enterprises, the commodity sales revenue of commercial enterprises, and the construction and installation income of construction enterprises.

Other business income refers to the income generated by the non-recurring and concurrent business of the enterprise.

Non-operating income refers to all kinds of income recognized by an enterprise that are not directly related to the production and business activities of the enterprise. Non-operating income is not generated by the consumption of operating funds of the enterprise, and does not need to be paid by the enterprise, but is actually a kind of net income, which does not need to be matched with relevant expenses. Therefore, in accounting, it is necessary to strictly distinguish the boundaries between non-operating income and operating income.

In layman's terms, all income other than the main business and other affiliated businesses specified in the business license of the enterprise is regarded as non-operating income. Generally, the credit multi-column sub-ledger format is used for classification accounting.

Accounting treatment of supplementary non-operating income:

When an enterprise transfers fixed assets, it first carries forward the original value of fixed assets and the accumulated depreciation amount that has been withdrawn, debits the "fixed assets disposal" and "accumulated depreciation" accounts, and credits the "fixed assets" account; Upon receipt of the agreed price from both parties, the "bank deposit" is debited and the "fixed assets disposal" account is credited; Finally, if the transfer price is higher than the net book value of fixed assets, the "Fixed Assets Disposal" account will be debited and the "Non-operating Income" account will be credited.

When an enterprise disposes of intangible assets, it shall debit the account of "bank deposits" according to the amount actually received, debit the account of "accumulated amortization" according to the accumulated amortization that has been accrued, credit the accounts of "taxes payable" and "bank deposits" according to the relevant taxes and other expenses payable, credit the account of "intangible assets" according to its book balance, and credit the account of "non-operating income - gain on disposal of non-current assets" according to its credit difference, and if the impairment provision has been made, it should also carry forward the impairment provision at the same time.

The recognized ** subsidy gains are debited to the accounts of "bank deposits" and "deferred income", and credited to this account.

Borrow: Bank deposit.

Credit: Deferred income.

When distributing deferred earnings:

Debit: Deferred earnings.

Credit: Non-operating income.

2) Income-related subsidies.

Borrow: Bank deposit.

Credit: Non-operating income.

Income refers to the total inflow of economic benefits formed by the enterprise in its daily activities, which will lead to an increase in the owner's equity and the capital invested by the non-owner, including income from the sale of goods, income from labor services, income from the transfer of the right to use assets, interest income, rental income, dividend income, etc., but does not include the payment collected for third parties or customers.

Non-operating income is not income, but only profits.

According to the relevant provisions of the Accounting Standards for Business Enterprises - Basic Standards (2006):

1. Income refers to the total inflow of economic interests formed by the enterprise in its daily activities, which will lead to an increase in the owner's equity and have nothing to do with the owner's invested capital.

2. Profit refers to the inflow of economic interests 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 invested capital.

It can be seen that the difference between income and profit lies in the nature of the business that generates income, the former arises from the daily activities of the enterprise, such as the main business, concurrent business, etc., and the latter arises from the non-daily activities of the enterprise, such as the disposal of fixed assets, donations, etc.

There are two types of profit scores, one is the gain directly included in the owner's equity, that is, the capital reserve (excluding the capital premium), and the other refers to the profit directly included in the current profit or loss, that is, the non-operating income.

Non-operating income is not directly related to the daily production and operation of the enterprise.

It definitely belongs to the income, depending on what you write about the problem, it is very clear.

Non-operating income is income, which refers to the income other than the operating profit incurred by the enterprise.

Non-operating income refers to the various gains incurred by an enterprise that are not directly related to its daily activities, mainly including gains from the destruction and scrapping of non-current assets, cash gains that are limited to unascertained reasons, gains from donations, income from fines, gains from debt restructuring, and payables that are truly unpayable and are converted into non-operating income after approval in accordance with the prescribed procedures.

In the "income statement" of the enterprise, the non-operating income needs to be listed separately. The accounting of the non-operating income of the enterprise is carried out under the "non-operating income" account, and it can also be set up under this account according to various income sub-accounts for detailed accounting. At the end of the period, the balance of non-operating income should be transferred to the "Profit of the Year" account, and there is no balance in this account after the carryover.

Legal basis] Company Law of the People's Republic of China

Article 163 The company shall establish the company's financial and accounting systems in accordance with laws, administrative regulations and the provisions of the financial department. Article 166 When a company distributes the after-tax profits of the current year, it shall withdraw 10% of the profits and include them in the company's statutory reserve fund. If the cumulative amount of the company's statutory reserve fund is more than 50% of the company's registered capital, it can no longer be withdrawn.

If the company's statutory reserve fund is insufficient to make up for the loss of the lease in the previous year, it shall first use the profits of the current year to make up for the loss before withdrawing the statutory reserve fund in accordance with the provisions of the preceding paragraph.

After the company withdraws the statutory reserve fund from the after-tax profits, it can also withdraw any reserve fund from the after-tax profits by resolution of the shareholders' meeting or the general meeting of shareholders.

The after-tax profits remaining after the company makes up the losses and withdraws the provident fund shall be distributed by the limited liability public case in accordance with the provisions of Article 34 of this Law; Shares are distributed in proportion to the shares held by shareholders, except for those that are not distributed in proportion to the shares held by the articles of association.

If the shareholders' meeting, the general meeting of shareholders or the board of directors violates the provisions of the preceding paragraph by distributing profits to shareholders before the company makes up for losses and withdraws the statutory reserve fund, the shareholders must return the profits distributed in violation of the provisions to the company.

Non-operating income is not income, it is profit. Non-operating income refers to various profits that are not directly related to the daily business activities of the enterprise, in other words, the income that is not within the scope of the business license of the enterprise and is not directly related to the normal business of the enterprise.

Non-operating income is a credit account that is reflected in the income statement, but does not affect the operating profit of the enterprise.

What is included in non-operating income?

Non-operating income mainly includes: gains from the exchange of non-monetary assets, gains from intangible assets, gains from debt restructuring, gains from business combinations, gains from inventory gains, payables that cannot be paid due to creditors' reasons, subsidies, additional refunds of education fees, penalty income, donation gains, etc.

The concept of income.

Income refers to the total inflow of economic benefits generated by the enterprise in its daily activities, which will lead to an increase in the owner's equity and are not related to the owner's return of the invested capital. The essence of income is the output process of the economic activities of the enterprise, that is, the result of the production and operation activities of the enterprise. Income can only be recognized if there is a high likelihood that the inflow of economic benefits will lead to an increase in the assets or a decrease in the liabilities of the enterprise, and the inflow of economic benefits can be reliably measured.

What is included in the income?

Revenue includes income from the sale of goods; Minpai provides labor income; income from the transfer of property; dividends, bonuses and other equity investment income; interest income; rental income; royalty income; Receiving income from donations; Other income.

Accounting treatment of non-operating income.

1. When an enterprise recognizes the gain on the disposal of non-current assets:

Borrow: Disposal of fixed assets.

Credit: Non-operating income.

2. Confirm the ** subsidy profits:

Borrow: Bank deposit.

Credit: Deferred income.

When distributing deferred earnings:

Debit: Deferred earnings.

Credit: Non-operating income.

3. Confirm the acceptance of the donation

Borrow: Bank deposit.

Credit: Non-operating income.

4. At the end of the period, the credit balance of the "non-operating income" account should be transferred to the "current year's profit" account

Borrow: Non-operating income.

Credit: Profit for the year.

Operating income excludes non-operating income.

Operating income refers to the income obtained by an enterprise from the sale of products or the provision of labor services in its production and business activities. Operating income = main business income + other business income.

The main business income refers to the income obtained by the enterprise through its main business activities. It includes income from the main business such as the sale of goods and the provision of labor services.

Other business income refers to the inflow of economic benefits generated through daily activities such as the sale of goods, the provision of labor services, and the transfer of the right to use assets, other than the main business income of an enterprise. Such as sales of materials, materials and packaging, transfer of intangible assets, leasing of fixed assets, leasing of packaging, transportation, income from waste materials, etc. Other business income refers to the income of an enterprise engaged in activities other than its main business, which refers to the profits incurred by an enterprise that are not directly related to its daily activities.

Scope of non-operating income

Non-operating income mainly includes: profit and loss from business combination, profit from inventory, annual payment payable due to creditors, ** subsidy, additional refund of education fees, penalty income, donation gains, etc.

Business combination profit or loss: The difference between the merger consideration and the fair value of the identifiable net assets obtained.

Inventory profit: refers to the amount of assets that are included in the non-operating income after the enterprise has been approved for the inventory of cash and other assets. Among them, the fixed assets are in surplus.

It refers to the estimated original value of off-the-books fixed assets found in the property inventory minus the estimated depreciation. In the current new standard, it is included in the "Profit and Loss Adjustment for the Previous Year" account.

Accounts payable that cannot be paid due to creditors' reasons: It mainly refers to the payables that cannot be paid due to the change of registration or cancellation of the creditor unit.

**Subsidy: refers to the profit formed by the enterprise from the acquisition of monetary assets or non-monetary assets free of charge.

Supplementary refund of education fees: It refers to the subsidy of the school funds returned by the education department to the enterprise after paying the education fee surcharge.

Penalty income: It refers to the fine paid to the enterprise by the other party in violation of the relevant national administrative regulations in accordance with the regulations, excluding the penalty interest of the bank.