Where is the cash flow of perpetual bonds filled?

Perpetual bonds, the part of the inflow and outflow of funds to fill in the financing.

Only inflows and outflows need to be included in the cash flow statement.

Perpetual bonds, also known as indefinite bonds, are bonds with no fixed term and inherent redemption rights issued by non-financial enterprises (issuers) in the interbank bond market. For each interest payment date of the perpetual bond, the issuer may, at its option, defer the payment of the current interest and all interest that has been deferred to the next interest payment date, without any limitation on the number of deferred interest payments.

In the international capital market, perpetual bonds are relatively mature financial products. There are 2,146 perpetual bonds in stock around the world, with a capital scale of US$647.1 billion. In order to improve the liquidity of bank perpetual bonds (including non-fixed maturity capital bonds), the town supports banks to issue perpetual bonds to supplement capital, and the People's Bank of China decided to create a central bank bill swap facility.

Accounting treatment of perpetual bonds.

In addition to the application of the Accounting Standard for Business Enterprises No. 2 - Long-term Equity Investment (Cai Hui 2014 No. 14), the holder of perpetual bonds shall distinguish the following circumstances for the accounting treatment of perpetual bonds:

1) The holder has implemented the new financial instruments standard.

Holders should follow the relevant provisions of Standard No. 22 and Standard No. 37 when determining whether the perpetual bond they hold is an investment in equity instruments.

For perpetual bonds that are investments in equity instruments, holders should classify them as financial assets measured at fair value through profit or loss in accordance with Standard 22, or if eligible, investments in non-trading equity instruments are initially designated as measured at fair value through other comprehensive income.

For perpetual bonds that are not investments in equity instruments, the holder should classify them as financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income, or financial assets measured at fair value through profit or loss in accordance with the Standards.

When judging the contractual cash flow characteristics of perpetual bonds, holders must strictly follow the provisions of Articles 16 to 19 of Standard No. 22 and carefully consider the option of good reform contained in perpetual bonds.

2) The holder has not yet implemented the new financial instrument standard.

When determining whether the perpetual bonds held by the holder are equity instrument investments or debt instrument investments, the holder should follow the relevant provisions of Standard No. 22 and Standard No. 375, and should generally be consistent with the issuer's accounting classification principles for the perpetual bonds.

For perpetual bonds that are investments in equity instruments, the holder should classify them as financial assets measured at fair value through profit or loss in accordance with the provisions of Standard No. 22, or financial assets available for ** financial assets (investment in equity instruments), etc., and if they meet the relevant provisions of Standard No. 22, they should also spin off the relevant embedded derivatives.

For perpetual bonds that are investments in debt instruments, holders should classify them as financial assets measured at fair value through profit or loss in accordance with Standard 22, or as financial assets available for ** (investments in debt instruments).

English is perpetual bond, as the name suggests, it is a bond that can theoretically exist forever, a debt that can exist forever.

Perpetual bonds refer to bonds that do not have a definite maturity date, or have a very long maturity period, and the issuing company has the option to redeem them and has the right to decide whether to defer interest payments. The holder cannot claim the repayment of the principal, but can receive the interest on a regular basis.

There is no fixed type of perpetual bonds in China, and the types cover several types of corporate subordinated bonds, corporate bonds, private placement bonds, general corporate bonds, medium-term notes, directional instruments, etc. Among them, most of them are "long-term medium-term notes with rights" registered with the National Association of Financial Institutional Investors and "renewable bonds" approved by ***.

1.Investment objects: bonds, convertible corporate bonds, contingent consideration in the cost of the merger (measured at fair value and its changes are included in profit or loss), wealth management products.

2.Are other debt investments and investments in equity instruments financial assets measured at fair value through other comprehensive income? Other bond investments belong to; Investments in other equity instruments are artificially specified;

3.The shares held by an investment entity shall be characterized as measured at fair value and its changes shall be included in profit or loss for the current period, but shall not be characterized as measured at fair value and its changes shall be included in other comprehensive income. The shares of subsidiaries held by investment entities may not be included in the scope of consolidation.

Subsidiaries that provide services to the parent company's investment activities can only be included in the scope of consolidation.

4.Debt investment is a monetary asset. It is characterized by the goal of collecting agreed contractual cash flows.

5.Accounts receivable, the control model is for the purpose of collecting contract cash flow and **, and the statement items are: receivables financing; The subject is: Other debt investments.

6.Equity investments, without the feature of receiving contractual cash flows.

7.Perpetual bonds and preferred shares need to be determined whether they are financial liabilities or equity instruments according to the terms. Preferred shares are bonds, which are bonds payable; Preferred shares or perpetual bonds are equity instruments, and other equity instruments are used.

8.Reclassification between financial assets is allowed, but reclassification between financial liabilities is not allowed.

9.Financial liabilities and equity instruments can be reclassified, and there is no difference between financial liabilities to equity instruments; If there is a difference between equity instruments and financial liabilities, it is required to be recorded at fair value, and the difference is included in the capital reserve.

10.Debt investment is transferred to **, ** is recorded on a fair basis, and the difference between fairness and book is included in the fair value change profit or loss.

11.Debt investment is reclassified into other debt investment, which is recorded on a fair basis, and the difference between fairness and book is included in other comprehensive income, and other comprehensive income will be converted into investment income in the future.

12.Debt investments are reclassified into other debt investments, and other comprehensive income is debited for impairment.

Financial assets include cash in hand, bank deposits, other monetary funds, accounts receivable, notes receivable, loans, other receivables, equity investments, debt investments and assets formed by derivative financial instruments. Huatai**'s one-stop wealth management platform - "Fortune Pass" provides a wealth of financial investment knowledge, welcome to learn. Huatai**, intimate housekeeper, everything you want is here, click below** to join us.