There are many situations in which net assets change: Net assets = total assets - liabilities, such as accepting investments, end-of-period valuation of financial assets, accepting donations, adjustment of profits and losses in previous years, etc. If these effects are discarded, it can be said that the current year's net profit =

Net assets at the end of the year - changes in the scope of consolidation of net assets at the end of the previous year. There may be disposal of holding subsidiaries. The disposed company does not exist on the balance sheet date at the end of the period. Capital reserves and undistributed profits at the beginning of the period will cause a decrease in net assets, but when

The income and profit will not be less.

Regarding the use of special reserve funds, some enterprises have accrued large amounts of special reserves. When they are actually used, such as production safety funds, they are disbursed from the special reserves and are no longer included in the current profits and losses.

Extended information: 1. Accounting of restricted net assets 1. Restricted income carried forward at the end of the period 2. Reclassification of restricted net assets 2. Accounting of non-restricted net assets 1. Non-restricted income carried forward at the end of the period will be donated income,

Income from membership fees, income from provision of services, income from government subsidies, income from product sales, investment income, other income, etc. are transferred to the credit of the "unrestricted net assets" account.

2. Cost and expense items carried forward at the end of the period transfer business activity costs, management expenses, financing expenses, other expenses, etc. to the debit side of the "unrestricted net assets" account.

3. Reclassification of restricted net assets When the restrictions on restricted net assets have been lifted, the net assets should be reclassified.