The application materials and the reply to the audit inquiry are displayed:(1) The molds required for the production of the issuer's injection molding products shall be designed and produced by the company itself.
(2) The issuer has a total of 8 holding subsidiaries, 2 holding subsidiaries and 2 branches, including 3 overseas production bases and 2 overseas sales companies. There are transactions between domestic and foreign parent and subsidiary companies such as sales of raw materials, products and fixed assets. (3) At the end of each period of the reporting period, the issuer's inventory was mainly stored in domestic and overseas factories or warehouses, and there were also some non-in-stock goods, including goods shipped, materials in transit and inventory goods stored in customer consignment warehouses.
(4) At the end of the reporting period, the carrying amount of the issuer's fixed assets was 41,708940,000 yuan, 46,855140,000 yuan and 62,261320,000 yuan, and the balance of construction in progress was 1,296740,000 yuan, 9,185540,000 yuan and 7,389090,000 yuan. Please issuersExplain the relevant situation of mold accounting, whether it conforms to industry practices and the relevant provisions of the "Accounting Standards for Business Enterprises".
ReplyExplain the relevant situation of mold accounting, whether it conforms to industry practices and the relevant provisions of the "Accounting Standards for Business Enterprises".(1) Explain the relevant situation of mold accounting
During the reporting period, the issuer accounted for the mold through the fixed assets account, and the issuer produced or purchased the mold according to the needs of the customer's order, and when the products produced with such molds reached the mass production acceptance standard, the workshop management personnel wrote and submitted the acceptance report, and the development cost of the mold was included in the fixed assets accounting after approval. In each period of the reporting period, the amount, increase and decrease of the issuer's mold credit, depreciation and amortization are as follows
As can be seen from the above table, the book value of molds has increased year by year, mainly due to the increase in product types, specifications and models demanded by customers with the expansion of business scale, and the corresponding increase in the number of molds and book value of the issuer. The specific accounting situation of the issuer's mold is as follows:(1) Initial measurement and subsequent measurement of the mold
The issuer's molds are mainly built or purchased according to production needs, and the life of the molds is estimated to be 3-4 years based on experience, so the depreciation of the issuer's own molds is calculated on a 3-4 year basis. Due to the different durability of the issuer's molds in the process of use, there will be daily wear and tear, and the daily repair costs of the issuer's molds are directly included in the profit or loss for the current period. (2) Disposal of the issuer's molds
After the production department analyzes the use of the mold, the self-owned mold that cannot be used or is no longer used is submitted to the relevant personnel for approval and enters the scrapping process. The disposal of the issuer's mold is accounted for through the fixed assets disposal account, and the issuer includes the difference between the disposal income after deducting the book value and relevant taxes into profit or loss for the current period. (3) Impairment of the issuer's moldsThe issuer determines whether there are signs of possible impairment of the mold at the balance sheet date, and if there are signs of impairment, the issuer will estimate its recoverable amount and conduct an impairment test. When the recoverable amount of the mold is lower than its book value, the issuer writes down its book value to the recoverable amount, and the write-down amount is included in the profit or loss for the current period, and the asset impairment provision of the corresponding mold is made at the same time.
(2) Whether the issuer's mold accounting conforms to industry practiceDuring the reporting period, the accounting treatment of the issuer's mold was compared with that of comparable companies in the same industry as follows:
As can be seen from the above table, comparable companies in the same industry of the issuer generally include molds in "fixed assets" or "long-term amortized expenses", and the depreciation or amortization period of molds is 3-8 years。The issuer's molds are included in the fixed assets accounting, and the depreciation period is 3-4 years, which is similar to that of comparable companies in the same industry. The production department of the issuer conducts regular maintenance of the mold, and the existing mold is in good condition, and according to the actual production of product models and specifications, it needs to be continuously used in the production process, and will continue to be used in the future, and there is no disposal plan for the time being, so the issuer has not made an asset impairment provision for the existing mold, which is in line with the actual situation of the company and is reasonable, and the accounting treatment of the issuer's mold is in line with industry practice. (3) Whether the issuer's mold accounting complies with the relevant provisions of the Accounting Standards for Business Enterprises
The molds included in the fixed assets of the issuer are tangible assets held by the company for the production of goods and have a useful life of more than one year. These molds can bring economic benefits to enterprises in the future, and their costs can be reliably measured, in line with the relevant provisions of the Accounting Standards for Business Enterprises No. 4 - Fixed Assets. At the end of each period of the reporting period, the issuer conducted an impairment indication analysis of the mold in accordance with the provisions of the Accounting Standard for Business Enterprises No. 8 - Asset Impairment on the indication of impairment and the specific use of the mold.
In summary, the issuer's mold accounting complies with the relevant provisions of the Accounting Standards for Business Enterprises.