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Is debt investment a current asset or a non-current asset?
Belong to non-current assets

1. Is debt investment a current asset?

Depending on current and long-term holdings,

Transactional financial assets refer to bond investment, stock investment and fund investment held by enterprises for sale in the near future. For example, stocks, bonds and funds purchased from the secondary market for the purpose of earning the difference. Transactional financial assets is a newly added accounting subject in accounting in 2007, mainly to replace the original short-term investment in order to adapt to the current market transactions such as stocks, bonds and funds. Similar but different.

Long-term investments are held-to-maturity investments.

2. What are illiquid assets?

Non-current assets include debt investment, other debt investment, long-term receivables, long-term equity investment, other equity instruments investment, other non-current financial assets, investment real estate, fixed assets, construction in progress, intangible assets, development expenditure, long-term deferred expenses, deferred income tax assets and other non-current assets.

Assets are divided into subjects reflecting current assets and subjects reflecting non-current assets according to the liquidity of assets.

The subjects reflecting current assets mainly include cash on hand, bank deposits, accounts receivable, raw materials and inventory goods.

The subjects reflecting non-current assets mainly include long-term equity investment, long-term receivables, fixed assets, construction in progress and intangible assets.

Structure of asset categories:

Debit registration increases, credit registration decreases, and the ending balance is generally in debit.

Calculation formula of ending balance:

Closing Debit Balance = Opening Debit Balance+Debit Amount in Current Period-Credit Amount in Current Period

Third, how to deal with the loss of creditor's rights investment?

1. The formal written document of enterprise risk management or investment strategy has stated that the financial asset portfolio or the combination of financial assets and financial liabilities should be managed and evaluated on the basis of fair value and reported to key management personnel.

2. Loans and receivables refer to non-derivative financial assets purchased and held by enterprises, which are not quoted in an active market and have a fixed or determinable recovery amount.

3. Held-to-maturity investment refers to the non-derivative financial assets purchased and held by an enterprise with a fixed maturity date and a fixed or determinable recovery amount, and the enterprise has a clear intention and ability to hold them to maturity.

4. Available-for-sale investment refers to non-derivative financial assets designated as available for sale at the time of initial recognition, and non-derivative financial assets that cannot be clearly classified into other categories.

The loss of debt investment refers to the net loss of debt investment such as short-term bond investment, long-term bond investment, entrusted loan and entrusted wealth management.

The losses of creditor's rights investment of enterprises belonging to bond investment, including the losses incurred by enterprises in futures, securities and foreign exchange transactions, should be confirmed one by one according to the authorization information of internal business of enterprises and the legal settlement vouchers of transaction funds provided by relevant transaction settlement institutions. If the transaction loss exceeds the authorized scope of internal business, the enterprise shall investigate the economic responsibility of the business personnel.

If the investment loss of creditor's rights other than bonds has been terminated by the investee, it shall be confirmed according to the calculation report of the investee; If the invested entity has not been terminated, it can be confirmed according to the creditor's rights transfer or settlement agreement signed with the relevant parties, but if the investment period is not full, the relevant agreement shall be notarized; Involving litigation, it shall be confirmed according to relevant legal documents and materials.

legal ground

Regulations of People's Republic of China (PRC) Municipality on the Implementation of Enterprise Income Tax Law

Article 119 The term "creditor's rights investment" as mentioned in Article 46 of the Enterprise Income Tax Law refers to the interest-paying financing that the enterprise obtains directly or indirectly from related parties and needs to repay the principal and pay interest, or needs to be compensated in other ways.

The creditor's rights investment indirectly obtained by enterprises from related parties includes:

(1) Debt investment provided by related parties through unrelated third parties;

(2) The creditor's rights investment provided by an unrelated third party shall be guaranteed by the related party and bear joint liability;

(3) Other creditor's rights investments with substantial liabilities obtained indirectly from related parties.

The equity investment mentioned in Article 46 of the Enterprise Income Tax Law refers to the investment accepted by the enterprise, which does not need to repay the principal and interest, and the investor owns the net assets of the enterprise.

The standards mentioned in Article 46 of the Enterprise Income Tax Law shall be formulated separately by the competent departments of finance and taxation of the State Council.