AccountingpolicyChange refers to the act of changing the accounting policy adopted by an enterprise from the original accounting policy to another accounting policy for the same transaction or event.
AccountingEstimatedA change is an adjustment to the carrying amount of an asset or liability or to the amount of the asset's regular consumption as a result of a change in the current state of the asset or liability and the expected economic benefits and obligations.
1. Due to the implementation of a new promulgation orNew revisionsAccounting standards for enterprises, such as revenue, leases, debt restructuring, etc.
This is an accounting situationpolicyAlter.
2 The subsequent measurement of investment real estate is determined by costmodeChanged to a fair value model.
This is an accounting situationpolicyAlter.
Inventory issuance valuation method(the valuation method of issued inventory has been changed from the first-in, first-out method to the weighted average method).
This is an accounting situationpolicyAlter.
Fair value(valuation techniques include market approach, income approach, cost approach).
This is an accounting situationEstimatedChanges, relates to:Fair valueof the determination.
Fixed assetsIntangible assetschanges in depreciation life, net residual value rate, amortization life, etc.
This is an accounting situationEstimatedChanges, relates to:Depreciation and amortization of fixed and intangible assets.
6. Asset impairment provision (inventory) was originally classified according to the originalAccrual, which is now changed to be accrued on a case-by-case basis.
This is an accounting situationEstimatedChanges, relates to:The amount of impairmentof the determination.
7. Accounts receivable bad debtsAccrualThe ratio changes, e.g. 10 20 or 20 10.
This is an accounting situationEstimatedChanges, relates to:The amount of impairmentof the determination.
8. Confirmation due to contingenciesProjected liabilitiesAdjust based on the latest evidence.
This is an accounting situationEstimatedChanges, relates to:Projected liabilitiesDetermination of the amount.
9. Determine by output method or input methodProgress in Compliancechanges.
This is an accounting situationEstimatedChange, involving the contractProgress in Complianceof the determination.
10. Determination of taxable temporary differences and deductible temporary differences.
This is an accounting situationEstimatedChange, which involves the estimation of fair value.
11. Reclassification between financial assets (debt instruments).
12. Reclassification between financial liabilities and equity instruments.
13. Conversion between long-term equity investment and financial assets.
14. Conversion between the cost method and the equity method of long-term equity investment.
15. The amortization of low-value consumables is changed from one-time amortization to amortization in installments.
16. Self-use fixed assets are converted into investment real estate due to leasing, and investment real estate is transformed into self-use fixed assets.
The above six situations are neither a change in accounting policies nor a change in accounting estimates, but a normal business adjustment.
In general, the following items are considered accounting estimates:
1) Determination of the net realizable value of inventory.
2) Determination of fair value.
3) Determination of the expected useful life, estimated net residual value and depreciation method of fixed assets.
4) Determination of the estimated useful life, residual value and amortization method of intangible assets with limited useful life.
5) Determination of recoverable amounts.
6) Determination of the estimated amount of liabilities.
7) Determination of the amount of income.
8) Determination of the progress of contract performance.
Generally related to accounting estimate items, it is generally a change in accounting estimate.