1. "Credit impairment loss" is the category of "expenses and losses" in the income statement. Loss increase is credited when debiting, offsetting or carrying forward, and there is no balance after carrying forward at the end of the period. Bad debt reserve refers to the possible bad debt losses are included in the current losses in advance, and the credit impairment losses are increased and debited.

2. An enterprise shall calculate the expected credit loss of financial instruments on the balance sheet date. If the expected credit loss is greater than the book amount of the current impairment reserve of the instrument, the enterprise shall recognize the difference as impairment loss, debit the account of "credit impairment loss" and credit the account of "bad debt reserve" according to the types of financial instruments.

Accounting scope of credit impairment loss

1. Financial assets measured in amortized cost whose changes are included in other comprehensive income: including bank deposits, funds in other currencies, financial assets bought for resale, notes receivable, accounts receivable, other receivables, loans, etc. ;

2. Lease receivables: Lease receivables here include both normal lease contracts and lease contracts with financing nature. It should be noted that the expected credit loss of financial lease receivables can be reversed after the economic situation of the partners improves obviously.

3. Contract assets: After the implementation of the new accounting standards, the impairment losses involved in contract assets need to be calculated through credit impairment losses. After all, enterprises may face default and bankruptcy of legal partners when executing contracts.

4. Partial loan commitments and financial guarantee contracts: Part of the loan commitments issued by enterprises belong to loan commitments other than financial liabilities measured at fair value and whose changes are included in the current profits and losses. When impairment occurs, it needs to be accounted by credit impairment loss.

Except for financial liabilities measured at fair value and whose changes are included in the current profit and loss, financial liabilities designated at fair value and whose changes are included in the current profit and loss, financial liabilities arising from the transfer of financial assets that do not meet the conditions for derecognition or continue to involve the transferred financial assets, other property guarantee contracts need to be included in credit impairment losses when they are impaired.