What does the account of deferred income mean

Deferred income is a ledger account in the liability category.

Deferred income refers to the income or income that has yet to be recognized, which can also be said to be the income that has not been recognized for the time being, which is the application of the accrual system in the recognition of income.

Compared with the International Accounting Standards, the scope of application of deferred income in the Chinese Accounting Standards and the Accounting System for Business Enterprises is very limited, which is mainly reflected in the relevant content of the lease standard and the revenue standard.

"Deferred income" and "accounts receivable" are both liabilities, but "deferred income" is an account of internal liabilities, and detailed accounts should be set up according to their contents for detailed accounting.

However, "accounts receivable in advance" is an account in the nature of external liabilities, so it should be calculated by setting up detailed accounts according to creditors. These can also be reflected in earlier IAS.

Deferred earningsIt is a liability account.

1) Accounting treatment by the gross amount method.

Will ** subsidize.

The full amount is recognized as deferred income, and then the profit or loss is recorded in installments in a reasonable and systematic manner during the useful life of the relevant asset to be written off.

1. When obtained:

Borrow: Assets;

Credit: Deferred income.

2. When amortized:

Debit: deferred income;

Credit: Other income.

daily activities);

Non-operating income.

non-daily activities).

According to the "Guide to the Application of Accounting Standards for Business Enterprises - Accounting Subjects and Main Accounting Treatment".

The deferred income account accounts for the amount of subsidies recognized by the enterprise according to the subsidy standard that should be included in the profit or loss of the current period in subsequent periods.

Because the carry-over of deferred income to non-operating income is prudent and does not result in the outflow of economic resources, deferred income does not belong to any of the circumstances constituting current liabilities as stipulated in Article 19 of the Accounting Standards for Business Enterprises No. 30 - Presentation of Financial Statements (Revised in 2014), so it can only be non-current liabilities.

It is presented under "Deferred Income" in the category of non-current liabilities.

Deferred income is a financial accounting account and a liability account.

Deferred income, also known as deferred income, refers to certain income received as of the middle of the financial statement date, and will continue to bring income in the future, the amount of which can be estimated, but the exact future income may be affected by some uncertain factors.

Therefore, the income received before the date of the financial statement will be recorded in the income of the current period as at the date of the financial statement, and the income that will continue to be brought in the future is called deferred income judgment.

Deferred income is common in the provision for bad debts, and the inclusion of this kind of income in the income account may increase the income on the books, and at the same time, it will also increase the liability, so it is recorded in the deferred income account, which avoids the original calculation of the income and avoids bringing unreasonable income to the enterprise.

The calculation of deferred income is generally based on the principle of "income-cost", that is, the income is first included in the "deferred income" of the liability account, and when its subsequent income reaches the cost standard, the "deferred income" is transferred to the "income" account.

Liabilities are divided into two categories: current liabilities and long-term liabilities according to their repayment speed or repayment time. Current liabilities mainly include short-term borrowings, notes payable, accounts payable, interest payable, accounts receivable, employee remuneration payable, taxes payable, dividends payable, and other payables. Long-term liabilities include long-term borrowings, bonds payable, long-term payables, etc.

Features of deferred earnings:

1. Uncertainty of the return period: Since the future return of the investment is affected by some uncertain factors, the specific amount of the future return cannot be determined before the date of the financial statements, and can only be preliminarily calculated with the estimated amount.

2. Double impact on the book: Since the deferred income has been affected before the date of the financial statements, it will have a double impact on the financial statements of the enterprise, on the one hand, it will increase the income on the books, and on the other hand, it will also increase the liabilities on the books.

3. The possibility of the future: the existence of deferred income indicates that the enterprise will benefit in a certain period in the future, but it cannot indicate when the actual income will come in the future.

Deferred earningsIt is a liability account.

1) Accounting treatment by the gross amount method.

Will ** subsidize.

The full amount is recognized as deferred income, and then the profit or loss is recorded in profit or loss in a reasonable and systematic manner during the useful life of the relevant asset.

1. When obtained:

Borrow: Assets;

Credit: Deferred income.

2. When amortized:

Debit: deferred income;

Credit: Other income.

daily activities);

Non-operating income.

non-daily activities).

According to the "Guide to the Application of Accounting Standards for Business Enterprises - Accounting Subjects and Main Accounting Treatment".

The deferred income account accounts for the amount of subsidies that should be included in the profit or loss of the current period in the following periods as recognized by the enterprise filial piety and limb industry according to the ** subsidy standard.

Because there is no outflow of economic resources when deferred income is carried forward to non-operating income, deferred income does not belong to any of the circumstances that constitute current liabilities as stipulated in Article 19 of Accounting Standards for Business Enterprises No. 30 - Presentation of Financial Statements (Revised in 2014), so it can only be non-current liabilities.

It is presented under "Deferred Income" in the category of non-current liabilities.

Deferred income is deferred income and belongs to the liability account.

Main accounting treatment of deferred income:

1. Accounting treatment of the gross method:

The full amount of the **subsidy is recognized as deferred income, and then the profit or loss is recorded in profit or loss in a reasonable and systematic way during the useful life of the relevant asset.

1.At the time of acquisition:

Borrow: Assets;

Credit: Deferred income.

2.At the time of amortization:

Debit: deferred income;

Credit: The income from his raised hand (daily activities).

Non-operating income (non-routine activities).

ii) Net Method Accounting Treatment:

The subsidy will be written off against the book value of the relevant assets, and the enterprise will depreciate or amortize the relevant assets according to the asset value after deducting the ** subsidy.

The accounting entries are:

1.At the time of acquisition:

Borrow: bank deposits, etc.

Credit: Deferred income.

2.When you purchase an asset:

Debit: deferred income;

Credit: Assets.

2.If the income-related subsidy is used to compensate the enterprise for the relevant costs, expenses or losses in the subsequent source or period, the enterprise shall recognize it as deferred income, and include it in the current profit or loss or write off the relevant costs during the period when the relevant expenses or losses are recognized.

3.If the income-related ** subsidy is used to compensate for the relevant costs or losses incurred by the enterprise, the enterprise shall directly include it in the current profit or loss or offset the relevant costs and expenses.

1. Deferred income is an accounting account in the category of liabilities. Other non-current liabilities are reported on the statement.

2. Deferred income refers to the income or income that has yet to be recognized, which can also be said to be the income that has not been recognized for the time being, which is the application of the accrual system in the recognition of income. Compared with the International Accounting Standards, the scope of application of deferred income in the Chinese Accounting Standards and the Accounting System for Enterprises and Bad Guessing Industry is very limited, which is mainly reflected in the relevant content of the lease standard and the income standard.

3. The deferred income account of hunger-based accounts for the amount of subsidies recognized by the enterprise according to the subsidy standard and should be included in the profit or loss of the current period in the following period. The ** subsidy recognized by the enterprise in the current profit and loss, in"Non-operating income. "Account accounting, not deferred income account accounting.

Main accounting treatment of deferred income:

1) The ** subsidy related to the assets of the enterprise shall be debited according to the amount receivable or received"Other receivables"、"Bank deposits"Account, which is credited to the deferred income account. When deferred earnings are allocated over the useful life of the underlying asset, the deferred revenue account is debited and credited"Non-operating income. "、"Management fees"and other subjects.

2) The ** subsidy related to the income shall be debited according to the amount receivable or received"Other receivables"、"Bank deposits"and other accounts, and the deferred income account is credited.

When the relevant expenses are recognized in subsequent periods, the deferred income account is debited and credited for the amount to be reimbursed"Non-operating income. "Subjects; If it is used to compensate for the related expenses or losses that have been incurred, the deferred income account is debited and credited"Non-operating income. "、"Management fees"and other subjects.

3) When the ** subsidy is returned, the deferred income account shall be debited according to the amount that should be returned"Non-operating expenses"Accounts, credits"Bank deposits"、"Other payables"and other subjects.

The credit balance at the end of this account reflects the amount of ** subsidy that should be included in the profit or loss of the current period in the following period.

What is the account of deferred income? After reading the introduction in the above article, we can understand that in the business of the enterprise, the enterprise receives the subsidy given by the enterprise, which is also one of the income of the enterprise, but the accounting treatment of the subsidy and the accounting treatment of ordinary income are different.