Ask the masters! On the question of equity investment

Your company can make an equity investment in that small-scale company. Operational procedures: First, the two parties determine the investment intention, namely:

Is it a full acquisition or a partial shareholding? How to price the small-scale company, negotiate how many shares can be accounted for in the company to be invested in the amount of capital to be invested (for example, the price is 10 million yuan, and if the investment amount is 3 million yuan, it can account for 30%). Then, the two parties sign an investment contract; Subsequently, if you make industrial and commercial changes such as the articles of association of the invested company, your company will become the legal shareholder of the invested company.

If you feel unclear about the specific operation, you can have a lawyer participate in the completion of the operation.

What industry are you investing in? Capitalistically, there is no one who can stop you from investing, it is completely voluntary, just like you buy and sell things. Of course, 3 million is okay, and the change of equity after investment needs to be notarized by a law firm, and finally you need to go to the industrial and commercial department to change the new enterprise registration information.

Long-term equity investment is a difficult chapter in the accounting learning content, and the study of this chapter is also related to the learning of business combinations and consolidated financial statements to be learned later, so it is very important to master this chapter.

The study of this chapter is different from other chapters, and it is more difficult to understand, and it belongs to the so-called "high-level" knowledge in accounting, so when studying deeply, do not try to solve it quickly, the more anxious you are, the more difficult it will be. For beginners, to learn this chapter, you must first be psychologically prepared, "fight a protracted war", learn ** do not understand, stop immediately, and then think and summarize the knowledge points that have been learned, do not immediately start the study of this chapter, after a period of time, and then start the second study, then you will find that there will be a great understanding and progress than the previous study. Just keep learning, resting, learning again, and resting again.

After four to five repetitions, you will have a thorough understanding of this, which will lay a solid foundation for your future study of business combinations and consolidated statements. It will be relatively easy to learn later

Analysis: This investment is a business combination not under the same control, which should be accounted for by the cost method, and the investment cost is recorded at the fair value of the consideration actually paid as the initial investment

Borrow: Long-term equity investment 14,360,000

Credit: main business income 8000000

Tax Payable - VAT Payable (Output Tax) 1,360,000

Bank deposit 50000000

Borrow: The cost of main business is 7000000

Credit: 7,000,000 goods in stock

If you still have questions, you can continue to ask me questions using "hi!!

Borrow: Long-term equity investment 14,360,000

Credit: main business income 8000000

Tax Payable - VAT Payable (Output Tax) 1,360,000

Bank deposit 50000000

Borrow: The cost of main business is 7000000

Credit: 7,000,000 goods in stock

The acquisition cost of the financial assets available for ** of Company A is 350, and the change in fair value during the holding period is included in capital reserve - other capital reserve, so the carrying value of ** at the time of 400 includes:

Available for ** Financial Assets - Cost 350

Available for **Financial Assets - Change in Fair Value 50

The entries made at the time of the fair value change are:

Debit: Available for **Financial Assets - Change in Fair Value 50

Credit: Capital Reserve - Other Capital Reserve 50

When it comes to derecognition of an investment or investment, there are two things to do:

1. The difference between the selling price and the book value is included in the investment income, that is, the investment income in the second entry: investment income 100 (500-400).

2. Transfer the "capital reserve - other capital reserve" generated during the holding of financial assets to "investment income", that is, the fourth entry

Borrow: Capital Reserve - Other Capital Reserve 50

Credit: Investment income 50

Available for ** Financial assets 500 400 (acquisition cost 350, fair value change gain or loss 500).

Isn't there a 500,000 (fair value change profit or loss should be 50, not 500, the title is wrong) included in the "capital reserve - other capital reserves".

Now that it has been sold, the rest of the capital reserve has been converted into investment income.

The book value of financial assets available for ** is 400 - the acquisition cost is 350 = 50, and the change in the fair value of the financial assets that was originally available for ** is included in 50 of the capital reserve, and now it is transferred out and included in investment income.

This is about equity method and cost method accounting, you go and take a look at intermediate financial accounting!

40% of the investment enterprises have a huge impact, using the cost method, not the equity method of accounting.

The set-off in the equity method is mainly the offsetting of unrealized internal gains and losses, which is detrimental and beneficial.

You can look at it this way, in an enterprise (the offsetting in the equity method is to look at the enterprise as a whole), if an inventory (such as a car in an automobile factory) is converted into a fixed asset, then it is normal for the fixed asset to be depreciated, because the fixed asset has been used, and its value must of course be transferred to the current expense through depreciation.

The problem is that in an enterprise, the original value of 6 million inventory as fixed assets can only be recognized as 6 million, and the depreciation can only be mentioned at 6 million, which is obvious, so it is necessary to reverse the original value of the overconfirmed and the depreciation of the over-mention, and note that here is the offset of the "more" part.

The entries are as follows: Borrow: Long-term equity investment - profit and loss adjustment 1140000 Accumulated depreciation 60000 Credit: fixed assets 1200000 I hope my answer can satisfy you.

[(8 000－5 600)×10％]

The 80 million here already includes an increase of 6 million net profit. In fact, it has been adjusted retroactively.

It is a long-term investment obtained by means other than business combination.

Borrow: Fiber early long-term equity investment - cost 6000

Loan ruined: bank deposit 6000

Equity method, goodwill 500 is included in long-term investment.

Now step by step, control without retrospective adjustment!

Originally, no matter what was measured, now only the number of dough noodles is taken from an account!

There are two accounting methods for equity investment: one is the cost method; The second is the equity method.

1) The scope of cost-based accounting.

A long-term equity investment in which an enterprise is able to exercise control over the investee. That is, the long-term equity investment of the enterprise in the subsidiary.

The enterprise does not have control, joint control or significant influence over the investee, and does not have a long-term equity investment in an active market and its fair value cannot be reliably measured.

2) The scope of equity method accounting.

A long-term equity investment in which the enterprise has common control over the investee. That is, the long-term equity investment of the enterprise in its joint venture.

A long-term equity investment in which the company has a significant impact on the investee (accounting for 20%-50% of the equity). That is, the long-term equity investment of the enterprise in its associates.

Enmei Roadshow.