How are unrecognized financing gains and unrecognized financing expenses reflected in the financial

Unrealized financing gains are reflected in long-term receivables. Unrecognized financing charges are reflected in long-term payables. Unrecognized financing expenses are allowance adjustment accounts for long-term payables and are liabilities.

The unrecognized financing income is an asset class.

In addition, it seems that the current textbooks plan unrecognized financing expenses as liabilities, whereas in the past they were assets.

I'll illustrate it to you by analogy.

What does unrecognized financing charge mean? For example, if an enterprise purchases fixed assets or intangible assets, it has to pay 10 million, but it can't take out so much at one time, so it can only pay 2 million every year and pay it in 5 years.

It can be clearly seen that it is more cost-effective to pay 2 million per year, 10 million in 5 years, or 10 million in 1 time?

It must be more cost-effective to pay 2 million per year, because if there is 10 million, pay 2 million at the end of each year, and the other 8 million can be deposited in the bank, and there will be interest on the bank.

Therefore, in the case of considering the interest rate, pay 2 million at the end of each year and pay it for 5 years, which is counted as the first year. Assuming that the interest rate is 5%, then the present value of the adult pension is calculated, which is equivalent to about 8.66 million in the first year, which is less than the 10 million lump sum payment in the first year. Then his difference of 1.34 million is the unrecognized financing cost, that is, the 5-year installment, which is equivalent to financing.

Do you think 8.66 million is less than 10 million? Does it feel like it generates revenue, how can it be included in the expense?

The question is, 8.66 million is not paid at once, and 2 million is paid annually, and the actual payment is 10 million, and 134 is the same as the interest.

To put it simply: treat "unrecognized financing costs" as interest on "long-term payables".

Quite a response is to say,"Unrealized financing gains"The account is usually used to account for the sale of goods by installments, which is actually a kind of interest compensation paid for installments, and the collection unit is used to offset financial expenses.

is still as mentioned above, 2 million is collected every year, and 10 million is collected after 5 years, but if it is collected in the first year, it is 8.66 million, that is to say, this is like a bank loan, and you pay a mortgage. You receive a one-time collection of 8.66 million and 2 million at the end of each year, collect for 5 years, and the result of the interest calculation at 5% is the same, and the unrealized financing income is that you helped the buyer to finance.

To put it simply: treat "unrecognized financing gains" as interest on "long-term receivables".

In the balance sheet, the long-term payables item is the long-term payables minus unrecognized financing costs, and the long-term receivables item is the long-term receivables minus unrecognized financing income. Therefore, it will not be listed separately.

1. Different accounting subjects:

Unrecognized Financing Expenses" account number 2702, the nature of the account is a liability, and it is used as a deduction item for long-term payables in the preparation of financial statements, that is, in the balance sheet, the "long-term payables" item is filled in as the balance of the "long-term payables" account minus the balance of the "unrecognized financing expenses" account and the amount of long-term payables due within one year.

The unrealized financing income will be able to bring future economic benefits related to the expenditure, all of which are borne by the current investment income, which is out of proportion. It is an asset class in a ledger account.

2. The specific content is different

The unrecognized financing expense account reflects the unrealized financing expenses incurred by financing leased assets (such as fixed assets and intangible assets) or long-term borrowings that should be amortized during each period of the lease term.

Unrealised financing proceeds are those that are not secured for rent not received.

3. Different accounting treatments:

Unrecognized financing expense, the amortization of interest expense due to financing over the lease term. It can also be regarded as the interest that the lessee must pay to the lessor for the purpose of financing, because the financial lease itself contains the purpose of financing.

The unrealized financing income should be omitted or undercounted against the expected income, and the financing income should be stopped for more than one rental payment period and the financing income originally recognized should be reversed and transferred to off-balance sheet accounting.

The financing fee is not recognized as a deduction for "long-term payables and financial lease payables". That is, "long-term payables" are presented in the balance sheet as a balance sheet minus unrecognized financing costs.

It can be understood as the apportionment of interest expenses due to financing over the lease term. It can also be regarded as the interest that the lessee must pay to the lessor for the purpose of financing, because the financial lease itself contains the purpose of financing.

In the new standard, the "unrecognized financing expenses" account number 2802, which is a liability in nature, is used as a deduction item for long-term payables in the preparation of financial statements, that is, in the balance sheet, the "long-term payables" item is filled in as the balance of the "long-term payables" account minus the balance of the "unrecognized financing expenses" account and the amount of long-term payables due within one year.

Unrecognized Financing Expense In which G/L account is the asset placed on the balance sheet? --Unrecognized financing expenses are used as a deduction for "long-term payables and financial lease payables". That is, "long-term payables" are presented in the balance sheet as a balance sheet minus unrecognized financing costs.

If the unrecognized financing costs are not reflected separately on the balance sheet, the balance of the long-term payables minus the unrecognized financing costs is shown in the long-term payables on the right side of the balance sheet.

1.Unrecognized financing charges are an allowance for long-term payables.

Amortization of unrecognized financing expense is recognized financing expense:

Long-term payables - instalments Number of instalments) - (Unrecognized Financing Charges - Recognized Financing Charges)] Effective interest rate.

Book value of long-term payables = balance of "long-term pre-existing payables" account - balance of "unrecognized financing expenses" account.

2.Unrecognized financing gains are an allowance for long-term receivables.

The amortization of unrecognized financing income is recognized as interest income

Long-term receivables - installment collection amount Number of periods) - (unrecognized financing income - recognized rolling financing income)] effective interest rate.

Book value of long-term receivables = balance of "long-term receivables" account - balance of "unrecognized financing gains" account.

Unrecognized financing expenses refer to the unrealized financing expenses incurred for the financing of leased assets (such as fixed assets and intangible assets) or long-term borrowings, which shall be apportioned during each period of the lease term. From another point of view, we can understand it as the allocation of interest expenses arising from financing during the lease period of Mengchun. It can also be seen as interest arising from financing that the lessee must pay to the lessor, since the finance lease itself contains a financing purpose.

The principal amount returned is the long-term payable minus interest, also known as the reduction in principal payable. That is, unrecognized financing expense = total future cash flow of long-term accounts payable (book balance) - present value of long-term accounts payable at the balance sheet date is equal to: principal is the present value of long-term accounts payable, and future interest payments (assuming capital time cost) are unrecognized financing expenses.

On the commencement date of the lease term, the lessor shall debit the "long-term receivables" account according to the sum of the minimum lease receipts and the initial direct expenses on the lease commencement date, debit the "unsecured residual value" account according to the unsecured residual value, and credit the "financial lease assets" account according to the fair value of the financial lease assets (the sum of the present value of the minimum lease receipts and the present value of the unsecured residual value).

The "non-operating expenses" account or the "non-operating income" account shall be debited according to the difference between the fair value and the carrying amount of the financial lease assets, and the account such as "bank deposits" shall be credited according to the initial direct expenses incurred, and this account shall be credited according to the difference.

The financing expense is recognized as a provision for long-term payables, and the long-term payables on the balance sheet reflect the principal balance payable of long-term payables.

The unrecognized financing expense account reflects the unrealized financing expenses incurred in financing leased assets (such as fixed assets and intangible porcelain properties) or long-term borrowings that should be allocated during each period of the lease period.

Unrecognized financing expense is a provision for long-term payables, a liability account, which is apportioned according to the effective interest rate method during the payment period of long-term payables. Installments are recognized as interest expense.