Introduction to the comparison and convergence of the old and new accounting standards for business

The specific process is as follows: Step 1: The financial accountant reviews the original vouchers collected, reviews the legitimacy and authenticity of the bills, and signs the original vouchers after the audit and submits them to the financial manager for review and signature The second step:

Classify the original voucher signed by the financial manager and hand it over to the general manager for approval Step 3: Make the accounting voucher after the original voucher approved by the general manager, and print it for the financial manager to review.

The main features of this book are: firstly, according to the new accounting standards and the latest application guide, a large number of charts and graphs are used to compare the differences between the old and new accounting standards intuitively and conveniently, and the specific business processes are combined with the framework of the new standards**, the new standard chart of accounts, and the list of important terms of the new standards, highlighting the key points and changes of the new accounting standards, so that readers can quickly grasp the key information in a relatively short reading time, and have the characteristics of clear organization and clear at a glance. Second, full attention should be paid to the convergence between the old and new accounting standards.

According to the Accounting Standard for Business Enterprises No. 38 - First Implementation of Accounting Standards for Business Enterprises and the Notice on Doing a Good Job in the Disclosure of Financial Accounting Information Related to the New Accounting Standards (Draft for Comments) issued by the China ** Regulatory Commission in December 2006, the problems that may exist in the implementation of the new accounting standards are analyzed in a more specific and simple manner. Thirdly, the specific decomposition and explanation are carried out with graphical comparison examples and connecting examples, so that readers can compare and understand the differences between the practical accounting treatment of the old and new standards and their basis, which has a strong operational guidance role. Finally, the comparison of the new standard with the old standard and the international accounting standards is taken into account, which increases the information content of the comparison and facilitates the use of readers.

Differences between the new accounting standards and the old accounting standards

Tend to be principle-oriented: Compared with accounting standards, the new accounting standards tend to be more principle-oriented and provide some implementation guidelines, and the company's financial personnel need to make more judgments.

Extended Materials. Accounting is a Chinese word pronounced kuài jì and its English name is accounting. Accounting has two meanings, one refers to accounting work.

The second refers to the accounting staff, who are engaged in the process of checking accounting vouchers, financial account books, and financial statements in accordance with the "Accounting Law", "Budget Law", "Statistics Law" and various tax laws and regulations as the legal basis, and engaging in economic accounting and supervision.

It is a kind of economic management work that takes currency as the main unit of measurement and uses special methods to account for and supervise the economic activities of a unit. Accounting staff are the personnel who carry out accounting work, including accounting supervisors, accounting supervision and accounting, property management, cashiers and other personnel.

Since the Zhou Dynasty, China has had a special accounting official position, in charge of tax revenue, money and silver expenditure and other financial work, and conducts monthly calculations and annual meetings. That is to say, the monthly sporadic calculation is calculated, and the annual total calculation is the meeting, and the two together become the term accounting.

Comparative analysis of the main changes between the old and new accounting standards:

1.The LIFO method has been abolished. Article 14 An enterprise shall adopt the first-in-first-out method, the weighted average method, or the individual valuation method to determine the actual cost of the inventory issued.

After the improvement, the "International Accounting Standard No. 2" abolished the LIFO method, and China's revised inventory standards also abolished the LIFO method, mainly because the LIFO method cannot truly reflect the inventory flow, and this decision does not exclude a special cost method similar to the LIFO method that can reflect the inventory flow.

2.Accounting for borrowing costs for inventories. Article 10 The borrowing expenses that should be included in the inventory cost shall be handled in accordance with the provisions of the "Accounting Standards for Business Enterprises No. 17 Borrowing Expenses".

Other borrowing costs shall be recognized as expenses according to the amount incurred when they are incurred and included in the profit or loss for the current period.

1. Tend to be principle-oriented:

For example, for non-monetary asset exchange transactions, the old accounting standards provided that the cost of the exchanged assets was determined on the basis of the carrying amount of the assets surrendered; The new accounting standards will distinguish whether an exchange has commercial substance and whether fair value can be reliably measured to determine whether it should be measured on the basis of fair value or book value.

2. Fair value measurement:

Fair value is the amount that a market participant would have to pay for an asset to receive or transfer a liability in an orderly transaction that occurred on the measurement date.

Under the old accounting standards, the historical cost method was generally used for measurement. However, the new accounting standards introduce more fair value measurement requirements, for example, in a business combination transaction that is not under common control, the cost of the merger should be determined by the fair value of the assets paid by the purchaser to obtain control of the acquiree and the liabilities incurred or assumed by the purchaser. Another example is the initial and subsequent measurement of trading financial assets at fair value.

3. Convergence with IFRS:

Compared to IFRS, the old accounting standards are quite different. The new accounting standards draw on IFRS and achieve convergence with IFRS. In 2005, the International Accounting Standards Board (IASB) endorsed the convergence of China's new accounting standards with IFRS.

Since then, the IASB has made a number of changes to IFRS. In line with the direction set out in the Roadmap for Continued Convergence of China's Accounting Standards for Business Enterprises and IFRS issued by the Ministry of Finance in April 2010, the new accounting standards will remain in line with IFRS for the foreseeable future.

4. Disclosure: For example, requiring the disclosure of information such as risk analysis and sensitivity analysis of financial instruments; Transactions or events that are measured at fair value require disclosure of the method of determining fair value, etc. These disclosure requirements place higher demands on corporate finance personnel, i.e., they need to "tailor" the disclosure to reflect the actual situation of the enterprise.