The enterprise should recognize revenue when it fulfills its performance obligations in the contract, that is, when the customer obtains control of the relevant goods; For performance obligations performed at a certain point in time, the enterprise shall recognize revenue at the point when the customer obtains control of the relevant goods.

The contract clarifies the rights and obligations of the parties in relation to the transferred goods

The contract has clear payment terms related to the transferred goods

All parties to the contract have approved the contract and promised to perform their respective obligations

The contract is of a commercial nature

The consideration to which the enterprise is entitled for transferring goods to customers is likely to be recovered

Rights and obligations payment approved Commercial consideration is likely

Identify contracts entered into with customers

Identify individual performance obligations in a contract

Determine transaction price

Allocate transaction price to various performance obligations

Revenue is recognized when each individual performance obligation is fulfilled.

Debit: bank deposit (transfer check, bank draft) Accounts receivable (entrusted collection, completed collection) Notes receivable (commercial bills) Credit: Main business income Taxes payable Borrow: Main business costs Inventory impairment Credit: Inventory goods

The seller pays for the buyer

Seller's burden

Delivery of product A

Delivery of product B

Received AB payment

Client

Trustee

Confirm sales revenue

Carry forward cost of sales

Offset and return current sales revenue

Write down cost of sales

Offsetting discounts to current income

If there is variable consideration in the contract, the enterprise should value the variable consideration included in the transaction price. The enterprise should determine the best estimate of the variable consideration based on the expected value or the most likely amount.

Debit: accounts receivable Credit: Main business income (best expected value) Taxes payable (original selling price * tax rate) Borrow: Main business cost (cost of goods) Credit: Inventory goods

Commercial discounts (discounts on goods)

Cash discount (pay later, pay less)

carry forward costs

The progress of contract performance can be reasonably determined

cannot be reasonably determined

Pay the contract fee

Amortization commission on sales revenue recognized monthly

Costs directly related to the contract (direct materials, direct labor, manufacturing overhead or similar expenses) Other costs incurred solely as a result of the contract Clarify the costs borne by the customer

Actual labor costs incurred

Revenue and costs are recognized according to the progress of contract performance

Pre-sale membership fee

Recognition of labor income at the end of the period

Actual costs incurred in selling goods and providing services

sell

rent

Other operating income

property tax

Travel tax

land holding tax

Land value-added tax (real estate company)

stamp duty

Debit: taxes and surcharges Credit: taxes payable

Consumption tax (sales)

Resource tax (sales)

Urban maintenance and construction tax

Education fee surcharge

environmental protection tax

Debit: taxes and surcharges Credit: taxes payable

sales department

Pre-sale On sale After-sales

Consignment sales

management department

Preparatory period

Unified burden

Interest expenses on short-term borrowings (interest income offsets financial expenses) Interest expenses during the operating period of long-term borrowings (not eligible for capitalization)

Bank handling fees and discount interest expenses for handling bank acceptance bills

Exchange losses (exchange gains offset financial expenses)

Operating income (main business income other business income) -

Damage and scrapping of non-current assets

Donation Proceeds

Profit from the order - only cash from the order profit

Government subsidies not related to daily activities

Accounts payable that cannot be paid

Losses due to damage or scrapping of non-current assets

Donation expenditure

Loss of inventory - loss of fixed assets

fine payment

Extraordinary loss (natural disaster)

=taxable income×tax rate (25%) = (total profits, fines, excessive expenses - interest income from government bonds - unmade losses - dividend income from long-term equity investments among resident enterprises) × 25%

Debit: income tax expense Credit: Taxes Payable – Income Tax Payable

= Deferred income tax liabilities (ending amount - beginning amount) - deferred income tax assets (ending amount - beginning amount)