The legal entity marked must be an accounting entity. However, accounting entities are not necessarily legal entities.

Corporate Financial Accounting

Financial Accounting of Administrative Institutions

Financial Accounting of Administrative Institutions

Corporate owned/controlled

expected to bring economic benefits

Formed by past transactions or events

present obligation

Expected outflow of economic benefits

Formed by past transactions or events

Source composition

equity transactions

daily activities form

Regardless of the capital invested by the owner

Resulting in owner's equity ↑

Where assets ↑/liabilities ↓ also cause owners' equity ↑ - income ↑?

confirm

daily activities form

Nothing to do with distributing profits to owners

Resulting in owner's equity ↓

【Summary】Profit or loss ① Gains/losses directly included in operating profits; gains and losses on asset disposals, credit impairment losses, gains and losses on changes in fair value, investment income, etc. ② Gains/losses directly included in current profits; non-operating income and non-operating expenses. ③ Gains/losses directly included in owners’ equity; other comprehensive income.

Measurement of purchase of fixed assets/non-capital, purchase of inventory, assumption of debt, etc.

Recording cost of excess inventory/fixed assets

Inventory end measurement - the lower of cost and net realizable value

① When fixed capital/no capital is obtained by installment payment. Booking cost = present value of total future payments ②Sales revenue is realized by installment collection, revenue = present value of future payment amount ③Abandonment expenses - the present value is used when included in the cost of fixed assets ④When determining the recoverable amount of assets - present value is one of the alternative measurement methods ⑤Financial lease of fixed assets, one of the accounting cost criteria = the present value of the payment

①Trading financial assets, end-of-period measurement criteria ②Investment real estate, one of the subsequent measurement standards ③Other debt investments, measurement criteria at the end of the period ④Financial lease of fixed assets, one of the accounting methods ⑤Trading financial liabilities, end-of-period measurement criteria