What Are Interim Financial Statements?

Interim refers to a reporting period that is shorter than a complete fiscal year. Interim financial report refers to the financial report prepared on the basis of the interim period.

Interim financial report

Right!

Medium term, which is shorter than a complete

Why is the interim financial report prepared and what is its main purpose? People have different views on this. According to one kind of understanding, the purpose of the interim report is the same as that of the annual report, which is to provide the financial status and operating results of the enterprise in a specific period. Under this understanding, the information in the interim financial report focuses on the past and focuses on how to truly reflect the company's past financial status and operating results. It emphasizes that

The preparation of the interim report can provide the users of information with more complete accounting information in a timely manner and help them evaluate the company's performance more comprehensively.

In our country, the content of the interim report mainly includes

There are two different approaches to the preparation of the interim report, which are based on two different perspectives, namely

Seasonal problem

Obviously, for some seasonally strong enterprises (such as agribusiness, tourism, certain fuel supply companies, and some retail industries, etc.), their seasonal income and

Interim report refers to financial reports prepared in a certain period (such as monthly, quarterly, and half-yearly) other than the annual financial report. For the special issues such as accounting estimates, cost allocation, deferred accruals, etc. in financial accounting, whether the interim report adopts the same accounting policies as the annual report, there are two main theories in the theoretical world: independence and holism. The former separates each interim period and adopts the same accounting method as the fiscal year; the latter treats each interim period as a component of the year, and the treatment of special events must consider its impact on the entire year. Among the many special issues in the interim report, the author believes that income tax accounting is a difficult point. The key issue is whether to disclose and how to measure income tax expenses in the interim report.

Example: The total profit of Company A from January to June 2003 is 50 million yuan, and the income tax rate is 33%, so the company's mid-term income tax expense is 16.5 million yuan (5000 × 33%). The accounting entries are:

Borrowing: Income tax expenses 16500000

Loan: Taxes payable-income tax payable 16500000

The above approach is not rigorous enough. In the mid-term, there may be compensation items for operating losses, gains or losses on extraordinary items and capital items, and permanent and temporal differences may occur. Therefore, when dealing with income tax issues in the interim report, a holistic approach must be applied, that At the end of the first half of the year, the effective tax rate for the whole year is estimated after taking into account the situation of the whole year, and the impact of permanent and temporal differences is reflected in the calculation of income tax.

Assume that Company A expects 2003 annual profit to be 120 million yuan and annual tax-free income to be 5 million yuan. It is estimated that there will be a permanent difference of 3 million yuan in salary, business entertainment expenses, and donations. Because the company's depreciation method is different from the tax law, the taxable income in the first half of the year calculated according to the tax law caliber is 48 million yuan. The company's income tax expenses for the first half of the year are calculated as follows:

Estimated taxable income for 2003 = 12000-500 + 300 = 11800 (ten thousand yuan), estimated income tax payable for 2003 = 11800 × 33% = 3894 (ten thousand yuan), estimated effective tax burden rate for the whole year = 3894 ÷ 12000 × 100% = 32.45%. The tax payable in advance from January to June 2003 in accounting caliber = 5000 × 32. 45% = 1622.5 (ten thousand yuan), the tax payable in advance from January to June of 2003 in accordance with the tax law = 4800 × 32.45% = 1557.60 (ten thousand yuan), deferred income tax = 162.25- 157.6 = 64.9 (ten thousand yuan).

The accounting entries on June 30, 2003 were:

Borrow: Income tax expenses 16225000

Loan: Taxes payable-income tax payable 15576000

Deferred income tax 649000

If the actual profit of Company A in 2003 was 128 million yuan, the annual tax-free income was 4.5 million yuan, the permanent difference was 3.6 million yuan, and the annual time difference due to depreciation was 5.2 million yuan, then the income tax expense of the accounting caliber in 2003 = ( 12800-450 + 360) × 33% = 419.4 (10,000 yuan), the taxable income of the 2003 tax law caliber = 12710-520 = 12190 (10,000 yuan), the income tax payable in 2003 = 12190 × 33% = 402.27 (ten thousand yuan), deferred income tax tax = 419.4-4022. 7 = 171.6 (ten thousand yuan).

The accounting entries on December 31, 2003 were:

Borrow: income tax expenses 41943000

Loan: Taxes payable-income tax payable 40227000

Deferred income tax 1716000

As for the accuracy of the expected effective tax rate for the whole year in the interim report, there is no need to adjust it, because the calculation of income tax in the annual report needs to pay attention to the situation throughout the year, and the above situation has been automatically corrected.