|
Welcome Guest
|
|
You are using Guest Account
|
|
||||||||||||||||||||||||||||||||||
|
I. GENERAL DESCRIPTION 1. The Accounting Measures for Investment Companies (hereinafter referred to the "Measures") are specially formulated in accordance with the Accounting Law of the People's Republic of China, the Regulation on Enterprise Financial Statements, Enterprise Accounting Rules and other relevant state laws and regulations, and in combination with the business characteristics and the reality of investment companies for the purpose of uniformly regulating the accounting of investment companies. 2. The lawfully established enterprises within the territory of the People's Republic of China, which specially undertake long-term equity investment or long-term creditor's investment, shall refer to the non-financial enterprises without obtaining a license for finance business, and shall implement the present Measures while implementing the Enterprise Accounting Rules. II. STATEMENT ON THE USE OF SUPPLEMENTARY ACCOUNTING TITLES 1.The setup of accounting titles (1) The present Measures have added "Short-Term Trust Loan", "Assets In Suspense", "Long-Term Trust Loan", "Investment Entrusted By Government", "Fees To Be Reinvested", "Proceeds From Transfer Of Stock Rights", "Interest Income", and "Income From Trust Management", "Interest Expense". The "Tax On Main Business And Associate Charge" is changed into "Business Tax And Associate Charge". (2) The business incomes of an investment company shall mainly include: investment income, interest income, income from transfer of stock rights, income from trust management, and other business income. The business outlays shall mainly include interest expense, other business expense, operating expenses, overhead expenses and finance charge. (3) The operating expenses of an investment company shall mainly include: traveling expense, business publicity expenses, auditing fees, consultation fees, rent and realty management fees. Overhead expenses shall mainly include the wages of the management personnel and the expenses for welfare, business entertainment, social security fees, the relevant depreciation reserves, business traveling fees, training fees, and conference fees. The financial expenses of an investment company may only reflect the foreign exchange gains and losses occurred in settlement and financing and other various outlays of handling charge and the interest income obtained from the cash in banks of an investment company, excluding the interest income obtained by an investment company from its granting loans to other entities by entrusting a financial institution and the interest expense occurred for its borrowing money from banks and other financial institutions. III. STATEMENTS ON THE USE OF SUPPLEMENTARY ACCOUNTING TITLES 1103 SHORT-TERM TRUST LOANS 1. This account title is used for recording the following sums of money with the term of one year or less, which are granted by a financial institution under the entrustment of an investment company to other entities according to the relevant provisions. 2. Under this account title the following classification items shall be created: -Accrued Principal Of The Loan; -Non-Accrued Principal Of The Loan; and -Depreciation Reserves. 3. Where an investment company entrusts any financial institution to make any short-term loan and transfers the loan to the financial institution, the loan shall be debited to the item "Accrued Principal Of The Loan" and credited to the item of "Cash In Bank" according to the amount of the loan. At the end of the term of loan, the interests of the trust loan shall be computed and withdrawn according to the prescribed interest rate, be debited to the items of "interests receivable" and credited to the item of "Interest Income" respectively. When recovering the trust loan, which shall be debited to the item of "Cash In Bank" and credited to the item "Accrued Principal Of The Loan". 4. In case any principal or interest of a loan fails to be recovered for 90 days overdue, it shall be debited to the item "Non-Accrued Principal Of The Loan" and credited to the item "Accrued Principal Of The Loan" on the basis of the principal. When an accrued loan is transferred into a non-accrued loan, the interest income that has been entered in an account shall be charged off with the interests receivable, which shall be debited to the item "interest income" and credited to the item "Interests Receivable", and a register for future reference on interests receivable of non-accrued loans shall be set up to register the uncollected interests receivable which have been transferred to non-accrued loans. In case a short term trust loan is transferred into a non-accrued loan from an accrued loan, the principal shall be set off first when the repayment of the loan is received, and shall be debited to the item "Cash In Bank" and credited to the item "Non-Accrued Principal Of The Loan"; after the principals of the loan are fully recovered, the repayment received again shall be confirmed as the current term interest income, which shall be debited to the item "Cash In Bank" and credited to the item "Interest Income". Where after an accrued loan is transferred into a non-accrued loan, if the client is able to repay the principals and interests it owes in time, and there is evidence showing that the client is able to repay the principals and interests of the loan on schedule and in full amount, the loan shall be transferred back to the accrued loan from a non-accrued loan, and shall be debited to the item "Accrued Principal Of The Loan" and credited to the item "Non-Accrued Principal Of The Loan" when it is transferred back. When receiving the original repayment, which is transferred from a non-accrued loan into an accrued loan, the interest income originally charged off shall be confirmed first, and shall be debited to the item "Cash In Bank", and credited to the item "Interest Income". After a non-accrued loan is transferred back to an accrued loan, the interest receivable shall be computed and withdrawn in light of the relevant provisions on time. 5. At the end of the term of loan, an investment company shall test the depreciation of the principal of the short-term trust loans as required, and compute and withdraw depreciation reserves if evidences show that the estimated amount of money to be recovered is lower than the principal. The computation and withdrawal of depreciation reserves shall be debited to the title "Overhead Expenses", and credited to the title "Depreciation Reserves". 6. The term-end debit balance of this account shall reflect the book value of the principal of the short-term loans granted by a financial institution under the entrustment of an investment company. 1212 ASSETS IN SUSPENSE 1. This title is used for recording the assets value having been accepted by an investment company for setting off debts and to be disposed of. An investment company shall determine the value of various assets in suspense for entering into an account in accordance with the provisions of the Enterprise Accounting Rules. 2. Under this title the following classification items shall be created: - Floating Assets In Suspense; - Fixed Assets In Suspense; - Equity Investment In Suspense; - Intangible Assets In Suspense; and - Depreciation Reserves. 3. The various debt-paying assets obtained by an investment company from a debtor's entity shall be debited to this account according to the book value of creditor's rights receivable plus the relevant tax money payable, and debited to items such as the "Short-Term Trust Loans---Depreciation Reserves", "Long-Term Trust Loans---Depreciation Reserves", etc., according to the depreciation reserves that have been computed and withdrawn from the creditor's rights receivable, and credited to items such as the "Short-Term Trust Loans---Non-Accrued Principal Of Loans" and "Long-Term Trust Loans---Non-Accrued Principal Of Loans" according to the book balance of creditor's rights receivable, and debited to accounts such as the "Cash In Bank" and "Tax Payable" according to the relevant tax money payable. 4. An investment company shall not amortize or make depreciation on assets in suspense; and shall make accounting on long-term equity investment in suspense it has obtained by taking the cost method, and the part of cash dividends or profits extended by the company according to the notice of the entity invested by it but shall be enjoyed by the company shall be debited to the account "Dividends Receivable" and credited to the account "Equity Investment In Suspense". Where any asset in suspense is transferred for self-use after being obtained by a company, it shall be debited to the title of "Fixed Assets" and "Intangible Assets" and credited to this account when the company goes through the relevant formalities. 5. At the end of a term, an investment company shall compute the price of assets in suspense according to the book value and money that may be recovered, whichever is lower, and the amount of depreciation reserves that shall be computed and withdrawn as determined on the basis of the book value of the assets in suspense and the money that may be recovered, whichever is lower, shall be debited to the account "Overhead Expenses", and credited to the account "Depreciation Reserves". 6. The term-end debit balance of this account shall reflect the book value of the various assets in suspense of an investment company. 1403 LONG-TERM TRUST LOANS 1. This account is for recording the money with the term for more than one year, which is granted to other entities by a financial institution entrusted by an investment company in accordance with the relevant provisions. 2. Under this account the following classification items shall be established: - Accrued Principal Of A Loan; - Non-Accrued Principal Of A Loan; and - Depreciation Reserves. 3. Where an investment company entrusts any financial institution to grant any long-term loan, and transfers the loan into the financial institution, the loan shall be debited to this account and credited to the account of "Cash In Bank" according to the amount of the loan. At the end of the term of loan, the interests of the trust loan shall be computed and withdrawn according to the prescribed interest rate, and be debited to the account "Interests Receivable", and credited to the account "Interest Income". When the trust loan is recovered, it shall be debited to the account "Cash In Bank" and credited to this account. 4. In case the principal or interest of any loan fails to be recovered for 90 days overdue, it shall be debited to the item "Non-Accrued Principal Of The Loan", and credited to the item "Accrued Principal Of The Loan"; in case an accrued loan is transferred into a non-accrued loan, the interest income that has been entered into an account and the interests receivable shall be charged off, and be debited to the account "Interest Income", and debited to the account "Interests Receivable", and a register for future reference for the interests receivable of non-accrued loans shall be set up to register the uncollected interests receivable that have been transferred into the accrued loans. Where after a long-term trust loan is transferred to a non-accrued loan from an accrued loan, the principal shall be charged off first when the repayment of the loan is received, and be debited to the account "Cash In Bank" and credited to the item "Non-Accrued Principal Of The Loan". After the principal of the loan is fully recovered, the repayment received again shall be confirmed as the current interest income, which shall be debited to the account "Cash In Bank", and credited to the account "interest income". After an accrued loan is transferred to a non-accrued loan, if the client is able to repay the principal in time and interest it owed before, and there is evidence showing that it can repay the principal and interest of the loan on schedule and in full amount, the loan shall be transferred back to the accrued loan from a non-accrued loan, and be debited to the account "Accrued Principal Of The Loan" and credited to the account "Non-Accrued Principal Of The Loan". When the repayment that is transferred from a non-accrued loan into an accrued loan is received, the interest income originally charged off shall be determined first, and shall be debited to the account "Cash In Bank" and other accounts, and credited to the account "Interest Income". After a non-accrued loan is transferred back to an accrued loan, the interests receivable shall be computed and withdrawn on schedule according to the relevant provisions. 5. At the end of the term of loan, an investment company shall compute and withdraw depreciation reserves of the long-term trust loans as required. When depreciation reserves are computed and withdrawn, they shall be debited to the account "Overhead Expenses", and credited to the account "Depreciation Reserves". 6. The term-end debit balance of this account shall reflect the book value of the principal of long-term loans granted by a financial institution entrusted by an investment company. 1903 DIRECTIONAL INVESTMENT 1. This account is for recording the directional investment made by an investment company in light of the provisions of relevant departments, or the investment projects allocated freely to an investment company by relevant departments. 2. Under this account the following classification items shall be established: - Equity Investment; - Creditor's Investment; and - Other Investment. 3. The capital of any directional investment received by an investment company shall be debited to the account "Cash In Bank" and credited to accounts such as "Paid-In Capital" and "Capital Reserve", etc. When any directional investment is made, it shall be debited to the item "Equity Investment, Creditor's Investment, And Other Investment" and credited to the account "Cash In Bank" and other accounts according to the investment cost. When an investment company obtains any investment project allocated gratis, it shall be debited to the account "Equity Investment, Creditor's Investment, And Other Investment" and credited to the accounts of "Paid-In Capital" and "Capital Reserve" according to the book value transferred out of the entity. 4. An investment company shall make accounting on "Directional Investment-Equity Investment" by adopting the cost method, the part of cash dividends or profits that shall be enjoyed by the company, which is issued by the company in light of the notice of the entity invested by it, shall be debited to the account "Dividends Receivable" and credited to the account "Investment Income" or this account. The cash dividends or profits actually received shall be debited to the account "Cash In Bank", and credited to the account "Dividends Receivable". An investment company shall compute and withdraw interests on "Directional-Investment-Creditor's Investment" on schedule. 5. A ledger shall be set up for this account according to the items of equity investment, creditor right investment, and other investment to make classified accounting. 6. The term-end debit balance of this account shall reflect the directional investment made by an investment company as required and the book value of the various investment projects transferred into gratis. 1904 FEES TO BE REINVESTED 1. This account is for recording the various prior expenses in relation to equity investment projects, which occurred due to the investment in light of the equity investment agreement by an investment company. 2. The prior expenses occurred in an investment company in relation to equity investment projects shall be debited to this account and credited to accounts such as the "Cash In Bank". When the investment on any equity investment project is made according to the agreement, it shall be debited to the account "Long-Term Equity Investment", and credited to this account. 3. Where no more equity investment is made due to the termination of an agreement and other reasons, the prior expenses occurred in the equity investment project shall be entered into an account as period expenses, and be debited to the account "overhead expenses" and credited to this account. 4. A ledger shall be set up for this account according to the investment projects. 5. The term-end debit balance in this account shall reflect the prior expenses not yet carried forward, which are occurred by an investment company due to equity investment. 5103 INCOME FROM TRANSFER OF STOCK RIGHTS 1. This account is for recording the net income realized by an investment company for transfer of stock rights. 2. When an investment company transfers stock rights, which shall be debited to accounts such as "Cash In Bank" and etc. according to the value actually obtained, and credited to the accounts of "Long-Term Investment Depreciation Reserves" and "Directional Investment---Equity Investment", according to the depreciation reserves having been computed and withdrawn, and debited to the accounts of "long-term equity investment" and "Directional Investment---Equity Investment", according to the book balance of equity investment, and credited to the account of "Dividends Receivable" according to the cash dividends or profits not yet received, and debited or credited to this account on the basis of the margin. The relevant fees occurred by an investment company during the transfer of stock rights shall be debited to this account and credited to accounts such as "cash", "Cash In Bank", "Tax Payable". 3. A ledger shall be set up for this account according to the items of stock rights transferred for classified accounting. 4. At term end, the balance of this account shall be transferred into the account of "Current Year Profits". There shall be no balance on this account after the account transfer. 5204 INTEREST INCOME 1. This account is for recording the interest income obtained by an investment company for entrusting any financial institution to grant loans to other entities. The interest income obtained by the investment company from its cash in bank shall be made in the account of "Financial Expenses", and not in the present account. 2. At term end, the interests of any trust loan shall be computed and collected according to the prescribed interest rates, and be debited to the account "Interests Receivable" and credited to this account. The interests of the trust loan actually received shall be debited to the account of "Cash In Bank" and credited to the account "Interests Receivable". 3. In case the principal or interest of any loan fails to be recovered for 90 days overdue, it shall be debited to the account "Short-Term Trust Loan---Non-Accrued Principal Of The Loan" and credited to the account "Short-Term Trust Loan---Accrued Principal Of The Loan", or debited to the account "Long-Term Trust Loan---Non-Accrued Principal Of The Loan" and credited to the account "Long-Term Trust Loan---Accrued Principal Of The Loan". When an accrued loan is transferred into a non-accrued loan, the interest income that has been entered into an account shall be charged off with the interests receivable and transferred outside the statement for accounting, which shall be debited to this account and credited to the account "Interests Receivable". At the same time, registration shall be made for future reference at the register for future reference. 4. A ledger shall be set up in this account in light of the types of loans for classified accounting. 5. At term end, the balance of this account shall be transferred into the account of "Current Year Profits". There shall be no balance on this account after the account transfer. 5205 INCOME FROM MANDATORY MANAGEMENT FEES 1. This account is for recording the income obtained by an investment company, which is entrusted by a group parent company or any other entity, from its management on investment projects or providing other services thereof. 2. The mandatory management fees obtained by an investment company from a group parent company or any other entity shall be debited to the account "Cash In Bank", and credited to this account. 3. A ledger shall be set up for this account according to the entrusting entity for classified accounting. 4. At term end, the balance of this account shall be transferred into the account of "Current Year Profits". There shall be no balance on this account after the account transfer. 5403 INTEREST EXPENSE 1. This account is for recording the interest expense occurred by an investment company for money borrowed from banks and other financial institutions, which shall be included in the current profits and losses. 2. In case the company computes and withdraws or incurs any interest expense, it shall be debited to this account and credited to the accounts such as "accrued expenses", "Cash In Bank", "Long-Term Loans" etc. 3. A ledger shall be set up for this account according to the categories of interest expenses. 4. At term end, the balance of this account shall be transferred into the account of "Current Year Profits". There shall be no balance on this account after the account transfer. FORMAT OF SUPPLEMENTARY STATEMENTS AND THE REMARKS ON THE MAKING OF SUCH STATEMENTS 1. An investment company shall, in light of the requirements of the relevant competent departments of the state and other relevant accounting information users for the accounting information, provide financial statements and the relevant data and materials on schedule. 2. In the present Measures, part of the items of statement and making of statements have been adjusted according to the balance sheet, profit statements and cash flow statements of the Enterprise Accounting Rules. (1) Supplement and adjustment on items in the balance sheet (Form 01 for the Accounting of Enterprises): A. The item "Of Which: Short-Term Trust Loan" shall be added under the item of "Short-Term Investment", which reflects the book value of the short-term trust loans of an investment company. B. The item "Assets In Suspense" shall be listed separately under the item of floating assets, which shall reflect the book value of the various assets of an investment company to be disposed of. C. The item "Of Which: Long-Term Trust Loan" shall be added under the item of "Long-Term Creditor's Investment", which shall reflect the book value of the long-term trust loans of an investment company. D. The item "Directional Investment" shall be added to the item of "Total Of Long-Term Investment", which shall reflect the book value of the directional investment of an investment company; but the item of "Directional Investment" shall be excluded from the items of "Long-Term Equity Investment" and "long-term creditor's investment". E. The item "Of Which: Fees To Be Reinvested" shall be added under the item of "Other Long-Term Assets", which shall reflect the relevant prior period investment fees relating to investment projects. (2) The format of profit statement (Form 02 of Accounting of Enterprises) shall be as follows: (Omitted) IV. STATEMENTS ON THE MAKING OF PROFIT STATEMENTS 1. This statement shall reflect the actual conditions of profits or losses of an investment company within a certain period. 2. The column "Amount In The Current Month" in this statement shall reflect the amount of various items actually occurred in the current month. When producing annual financial statements, the column "Amount In The Current Month" shall be changed into "Amount In The Previous Year", filling in and listing the accumulative amount actually occurred in the whole year of the previous year. If the names of items of the profit statement in the previous year does not agree with those of the current year, the names and numbers of the items of the profit statement in the previous year shall be adjusted according the provisions in the current year, and filled into the column of "Amount In The Previous Year" of this statement. The column "Accumulative Amount In The Current Year" shall reflect the accumulative amount actually occurred from the beginning of the year till the term end of the report. 3. The contents of the various items in the statement and the method for filling in them: (1) The item "Income" shall reflect the total income obtained by an investment company. This item shall be filled in and listed on the basis of the collective computation of the amount of "Investment Income", "Interest Income", "Income From Transfer Of Stock Rights", "Income From Mandatory Management Fees" and "Other Business Income". (2) The item "Investment Income" shall reflect the income obtained by an investment company from any investment project or losses occurred therefrom, excluding the net income obtained from the transfer of stock rights of any investment project and the interest income obtained by entrusting any financial institution to grant loans to any other entity. This account shall be filled in and listed on the basis of analyzing the incurred amount in the account "Investment Income"; in case of investment losses, it shall be filled in and prefixed by a "minus" (-). (3) The item "Interest Income" shall reflect the interest income obtained by an investment company for entrusting any financial institution to grant loans to any other entity. This item shall be filled in and listed on the basis of the analysis of the incurred amount in the account "Interest Income". (4) The item of "Income From Transfer Of Stock Rights" shall reflect the net income realized by an investment company for transferring the stock rights of any investment project. This item shall be filled in and listed on the basis of analyzing the incurred amount of the account "Income From Transfer Of Stock Rights". (5) The item "Income From Mandatory Management Fees" shall reflect the income from overhead expenses paid by an overseas group corporation, which are obtained by a foreign-funded investment company under it entrustment for managing the investment projects of the overseas group corporation within the territory of China. This item shall be filled in and listed on the basis of analyzing the incurred amount in the account "Income From Mandatory Management Fees". (6) The item "Other Business Income" shall reflect the various incomes obtained by an investment company for undertaking other businesses apart from the investment business. This item shall be filled in and listed on the basis of analyzing the incurred amount in the account "Other Business Income". (7) The item "Expenses" shall reflect the total amount of various expenses occurred by an investment company. This item shall be filled in and listed on the basis of the collective computation of the amount of items such as the "Interest Expenses", "Operating Expenses", "Overhead Expenses", "Finance Charges", "Other Business Expenses", "Business Tax And Associate Charge", other items, etc.. (8) The item "Operating Expenses" shall reflect the operating expenses incurred by an investment company. This item shall be filled in and listed on the basis of analyzing the incurred amount in the account "Operating Expenses". (9) The item "Overhead Expenses" shall reflect the overhead expenses incurred by an investment company. This item shall be filled in and listed on the basis of analyzing the incurred mount in the account "Overhead Expenses". (10) The item "Finance Charges" shall reflect the financial expenses occurred in an investment company. This item shall be filled in and listed on the basis of analyzing the incurred amount in the account "Finance Charges". (11) The item "Interest Expenses" shall reflect the various interest expenses incurred by an investment company according to the prescribed applicable interest rate on the various loans. This item shall be filled in and listed on the basis of analyzing the incurred amount in the account "Interest Expenses". (12) The item "Other Business Expenses" shall reflect the various outlays occurred in an investment company for undertaking other businesses apart from the investment business. This item shall be filled in and listed on the basis of analyzing the incurred amount in the account "Other Business Expenses". (13) The item of "Business Tax And Associate Charge" shall reflect the business tax, urban maintenance and construction tax, land value added tax and education surtaxes and associate charges, which shall be borne by an investment company in routine activities. This item shall be filled in and listed on the basis of analyzing the incurred amount in the account "Business Tax And Associate Charge". (14) The item "Subsidy Income" shall reflect the various subsidy income obtained by an investment company and the value-added tax returned. This item shall be filled in and listed on the basis of analyzing the incurred amount in the account "Subsidy Income". (15) The item "Non-Operating Income" and the item "Non-Business Expenditure" shall reflect the various income and expenditure incurred by an investment company, which are in no direct relation with its business operation. These two items shall be filled in and listed on the basis of analyzing the incurred amount in the account "Non-Operating Income" and the account "Non-Business Expenditure". (16) The item "Total Profits" shall reflect the total amount of profits realized by an investment company. If it is the total loss, it shall be filled in and prefixed by a "minus" (-). (17) The item "Income Tax" shall reflect the income tax deducted by an investment company from the current profits and losses as required. This item shall be filled in and listed on the basis of analyzing the incurred amount in the account "Income Tax". (18) The item "Net Profit" shall reflect the net profit realized by an investment company. If it is net loss, it shall be filled in and prefixed by a "minus" (-). V. STATEMENTS ON THE MAKING OF CASH FLOW STATEMENTS 1. This statements shall reflect the information of inflow and outflow of the relevant cash and equivalent of cash within a certain accounting period. 2. The statements of cash flow shall reflect the cash flow occurred in business activities, cash flow occurred in investment activities and the cash flow occurred in fund raising activities, respectively. The cash flow as mentioned in these statements shall refer to the inflow and outflow of cash. 3. The contents of items of alteration of this statements and the method for filling in it shall be as follows: (1) Items of cash flow occurred in investment activities A. The cash received for recovery of investment shall reflect the contents in the following two aspects: a. Cash Received From Recovery Of Investment Of The Nature Of Rights And Interests This item shall reflect the cash received by a company for its sale, transfer or recovery of the short-term investment and long-term equity investment due. The non-cash assets recovered do not involve the alteration of cash flow, which shall be reflected in the item of "investment and fund raising activities not involving cash income and expenses" of the supplementary materials of the statements of cash flow. b. Cash Received For Recovery Of Creditor's Investment This item shall reflect the principals of various creditor's investment recovered by a company in the current term, including the various short-term and medium and long-term loans. B. The cash received from the investment income obtained shall reflect the contents of the following three aspects: a. Interests Of Deposits And Loans Received This item shall reflect the interests of various term deposits and loans actually received by a company, including the interests of deposits and loans received in the current term and the loan interests receivable in the previous term, which are received in the current term. b. Cash Received For The Dividends And Profits Shared This item shall reflect the cash dividends actually received by a company from the equity investment, including the cash received from its subsidiaries, jointly-run enterprises and joint venture enterprises after distributing profits. The cooperative investment income actually received in the current term shall also be reflected in this item. c. Cash Received From Transfer Of Stock Rights This item shall reflect the cash income received by a company for the transfer of stock rights. C. Net cash received from disposing fixed assets, intangible assets and other long-term assets shall reflect the following: the net cash obtained by a company for disposing fixed assets, intangible assets, assets in suspense and other long-term assets after deducting the relevant fees paid for disposing of these assets. This item shall also include the income from the sale of the fixed assets that have been discarded as useless or damaged and the income from insurance compensation received due to disasters. In case the net cash received from disposing fixed assets, intangible assets and other long-term assets is a negative, it shall be reflected in the item of cash outflow in investment activities, and listed in the item "Other Cash Paid Relating To Investment Activities". D. Other cash received relating to investment activities shall reflect the following: other cash inflow incurred by a company in relation to investment activities apart from reflecting the aforesaid various investment activities. If the amount of other cash inflow is considerably large, a statement shall be made. E. Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets shall reflect the following: the cash paid by a company for purchasing and constructing fixed assets, obtaining intangible assets and other long-term assets. The rent paid for financing leasing fixed assets shall be reflected separately in the cash flow occurred in fund raising activities. F. Cash paid for investment shall reflect the contents of the following two aspects: a. Cash Paid For Investment Of The Nature Of Rights And Interests This item shall reflect the cash actually paid by a company for making investment of the nature of rights and interests, including short-term investment and long-term equity investments. The investment of any rights and interests nature made by an enterprise with non-cash fixed assets shall be reflected separately in the annotations of the statements of cash flow, and be excluded from the present item. b. Cash Paid For Creditor's Investment This item shall reflect the trust loan granted by a company in the current term and the principals and various bonds. G. Other cash paid in relation to investment activities This item shall reflect other cash outflow incurred by a company in relation to investment activities apart from reflecting the aforesaid various investment activities. If the amount of other cash outflow is considerably large, an explanation shall be made. (2) Items of cash flow occurred in fund raising activities A. Cash received from absorbing investment of the nature of rights and interests This item shall reflect the cash received by a company from capital increase. B. Cash received from loans This item shall reflect the cash received by a company from borrowing the various short-term or long-term loans from banks or financial institutions. C. Other cash received in relation to fund raising activities This item shall reflect other cash inflow occurred by a company in relation to fund raising activities apart from the aforesaid various fund raising activities. D. Cash paid for repayment of debts This item shall reflect the cash paid by a company for repayment of principals of debts, including: repaying the loans of financial enterprises, repaying the bonds due of any company. E. Cash paid for distribution of dividends, profits or repayment of interests This item shall reflect the cash dividends and profits actually paid by a company and the interests outlays, of which the interests outlays shall be listed as a separate item thereof. F. Other cash paid in relation to fund raising activities This item shall reflect other cash outflow incurred by a company in relation to fund raising activities apart from the aforesaid various fund raising activities. If the amount of other cash outflow is considerably, explanations shall be made. |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
|
Copyright 2002 NovexCn.com
|