How to account for highway tolls?

Mondo Social Updated on 2024-01-29

The accounting of highway tolls includes the following 6 aspects:

1.Principles of revenue recognition and measurement.

The recognition and measurement of toll revenue should follow the accrual principle and the historical cost principle.

2.Accounting and management of receivables.

The amount of tolls receivable shall be recorded in the accounts according to the amount actually received, and the interest shall be accrued in a timely manner.

3.Accounting of related expenses.

The highway management agency should reasonably share the relevant costs, such as maintenance, repair and other costs. At the same time, the impact of depreciation on tolls should also be considered.

4.Profit distribution and income tax treatment.

According to the provisions of the national tax regulations, expressway operating enterprises shall file tax returns after the end of the year, and calculate and pay the corresponding income tax in accordance with the provisions of the tax law.

5.Financial statement preparation and disclosure requirements.

In the preparation of financial statements, toll revenue and other relevant items should be presented separately on the balance sheet in accordance with the requirements of accounting standards;For the income statement, toll revenues should be presented as part of the operating income.

6.Accounting for other matters.

In case of special circumstances or unforeseen events that lead to a decrease in toll revenue, the relevant accounts and accounting treatment should be adjusted in a timely manner. In addition, there are other factors that may affect toll revenue, such as weather conditions, traffic controls, and other factors.

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