1. This standard regulates the accounting of income and the disclosure of relevant information formed by enterprises in the following transactions:

(1) selling goods;

(2) Providing labor services;

(3) Others use the assets of this enterprise.

2. The main problem of income accounting is when to confirm income and how to measure it.

3. This standard does not involve the following income:

(1) construction contract;

(2) Non-monetary transactions.

(3) lease;

(4) Insurance contracts of insurance companies;

(5) Futures;

(6) investment;

(7) Debt restructuring.

definition

4. The following terms used in these standards are defined as follows:

(1) Income refers to the total inflow of economic benefits formed by an enterprise in its daily activities such as selling goods, providing services and using its assets.

Revenue does not include money collected for third parties or customers.

(2) Cash discount refers to the debt deduction provided by the creditor to the debtor in order to encourage the debtor to pay within the prescribed time limit.

(3) Sales discount refers to the discount on the sales price given by the enterprise because the quality of the goods sold is unqualified.

(4) the percentage of completion method refers to the method of confirming income and expenses according to the degree of completion of labor services.

sale of goods

5. Revenue from sales of commodities shall be recognized when the following conditions are met:

(1) The enterprise has transferred the main risks and rewards of commodity ownership to the buyer;

(2) The enterprise neither retains the right to continue management, which is usually associated with ownership, nor controls the goods that have been sold;

(3) the economic benefits related to the transaction can flow into the enterprise;

(4) Relevant income and costs can be measured reliably.

6. The income from the sale of goods shall be determined according to the amount of the contract or agreement signed between the enterprise and the buyer or the amount accepted by both parties. Cash discounts are recognized as current expenses when they actually occur; The sales discount will offset the current income when it actually occurs.

7. If the sold goods whose income has been confirmed by the enterprise are returned, they shall be transferred back to the current income. However, if the goods sold on or before the balance sheet date are returned between the balance sheet date and the approval date of the financial report, it shall be handled in accordance with the relevant provisions of the Accounting Standards for Enterprises-Matters after the Balance Sheet Date. rendering of service

8. For services started and completed in the same accounting year, revenue is recognized when the services are completed.

9. If the start and completion of labor services belong to different accounting years, the enterprise shall confirm the relevant labor income on the balance sheet date according to the percentage of completion method on the premise that the results of labor service transactions can be reliably estimated.

10. When the following conditions are met, the result of the transaction can be reliably estimated:

(1) The total income and total cost of labor services can be measured reliably;

(2) the economic benefits related to the transaction can flow into the enterprise;

(3) The degree of completion of labor services can be reliably determined.

1 1. The degree of completion of services shall be determined according to the following methods:

(1) Measurement of completed work;

(2) The proportion of services provided to the total amount of services to be provided;

(3) The ratio of the incurred cost to the estimated total cost.

12. In the case that the result of labor service transaction cannot be reliably estimated, the enterprise shall confirm the income according to the amount of labor service cost that has occurred and is expected to be compensated on the balance sheet date, and carry forward the cost according to the same amount; If the labor cost that is expected to have occurred cannot be compensated, the income should not be recognized, but the cost that has already occurred should be recognized as the current expense.

13. The total income from providing labor services shall be determined according to the amount of the contract or agreement signed between the enterprise and the labor service recipient. Cash discounts should be recognized as current expenses when they actually occur.

Others use the assets of this enterprise.

14. The income generated by others using the assets of this enterprise includes interest income and royalty income.

15. When the following conditions are met, the interest and royalty income shall be determined according to the method specified in 16:

(1) The economic benefits related to the transaction can flow into the enterprise;

(2) The amount of income can be measured reliably.

16. Income from interest and royalties shall be determined according to the following methods:

(1) Interest income is calculated and determined according to the time when others use corporate cash and the applicable interest rate;

(2) Royalty income shall be calculated and determined according to the charging time and method agreed in the relevant contract or agreement.

make public

17. An enterprise shall disclose the following income-related matters:

(1) Accounting policies adopted in revenue recognition;

(2) The following income amounts confirmed in this period:

(1) Revenue from the sale of commodities;

(2) Income from providing labor services;

③ Interest income;

④ Royalty income.

supplementary terms

18. The Ministry of Finance is responsible for the interpretation of these Standards.

19. This standard comes into effect from 1999 1.