What Is a Title Transfer?

The transfer of property rights is the change of property ownership and the possession, use and control rights of the property between different subjects (owners); or when the ownership of the property is not transferred or incompletely transferred, its possession and use , Domination and benefit-sharing rights transfer between different operators. The objects of transfer include assets in the form of materials such as machinery, equipment, plant buildings, land, and raw materials, as well as intangible assets such as monetary assets, creditors' debts, and technology patents. The transfer of property rights of an enterprise can take the form of a single item (a plant, a machine, etc.), part or all of the transfer of property rights. The transfer of most or all of the property rights of an enterprise often results in mergers. There are two specific forms of property right transfer: paid transfer and free transfer. The legal conditions for its establishment include: (1) The transferred property must be a legal subject with actual property rights. No organization or individual has the right to transfer property without actual property rights. The legally authorized agent is deemed to have legal property The subject; (2) both parties to the transfer of property rights must perform the necessary legal procedures for the transfer of property rights; (3) after the procedures are completed, the original property right party loses the property right, and the transferee owns the property right according to law and is protected by law. The transfer of property rights between enterprises is an effective way to achieve the optimal combination of production factors and the optimization and adjustment of the industrial structure. ^[1]

Transfer of property rights

What is title transfer

(1) Whole or part

(One)

1. The transferor and the transferee must establish one

Accounting for the transfer of property rights of foreign-invested enterprises

The transfer of property rights can be calculated at the net book value or at the revaluation value, which are illustrated by examples.

Accounting for transfer of property rights based on net book value

The net book value refers to the book value of the company's net assets. The book value of the net assets at the end of liquidation refers to the book value of the net assets of the company's property materials, claims, and debts after checking and verification, that is, the amount of owner's equity (paid capital + reserve fund + enterprise development fund + undistributed profits Uncovered losses ± liquidation gains and losses).

For example, a company was dissolved and liquidated on September 30, 1998, and the foreign investor transferred property rights based on the net book value of the liquidation end date. The liquidation procedure is as follows:

Prepare the balance sheet on the date of dissolution. As verified by the liquidation committee and verified by a certified public accountant, the foreign currency exchange rate has been adjusted and three funds have been accrued.

1. After the liquidation committee has verified and processed the property, creditor's rights and debts, the detailed information and specific accounts are handled as follows:

(1) The finished product loses 9,500 yuan and the raw material gains 4,500 yuan. Its accounting entries are:

Borrow: Raw materials 4500

Liquidation profit and loss 5000

Credit: Finished product 9500

(2) Inventory receivables, of which 6,400 yuan is determined as bad debt losses, and its accounting entries are:

Borrow: liquidation profit or loss 6400

Credit: Accounts receivable 6400

(3) The total tax payable of RMB 43600 is settled, and its accounting entries are:

Borrow: Tax payable 43600

Loan: Bank deposits-RMB account 43600

(4) Payment of various settlement costs of 15,000 yuan during the inventory process, of which: 3,000 yuan in cash and 12,000 yuan in bank deposits, the accounting entries are:

Borrow: clearing costs 15000

Loan: Bank Deposit-RMB Account 12000

Cash 3000

(5) The balances of other accounts receivable, accounts payable, employee awards and welfare funds are transferred to the enterprises that continue to operate after the transfer of property rights.

2. Calculation of property rights transfer and accounting treatment. The net book owner's equity of the balance sheet on the day of liquidation is RMB 1,872,600, which is calculated based on 50% investment from both the Chinese and foreign parties.

(1) The balance of the reserve fund, enterprise development fund and undistributed profits shall be distributed according to 50% of the capital contribution ratio. Its accounting entries are as follows:

Borrow: Reserve Fund 90400

Enterprise Development Fund

Undistributed profit

Loan: Paid-in capital-Chinese investment 106300

Foreign investment 106 300

(2) Repayment of foreign property rights after transfer. The net foreign property right is 936,300 yuan, which is paid by bank deposits. The US dollar 10,000 account is converted into RMB 83,000 for RMB accounts, and RMB 853,300 for RMB accounts.

Borrow: Paid-in capital-Foreign investment 936 300

Loan: Bank Deposit-US Dollar Account (US $ 10000) 83000

RMB account 853300

At this point, the liquidation account processing has basically ended, and the balance sheet and property right calculation statement after the liquidation of the foreign party at the end of the liquidation can be used to prepare the profit and loss statement.

Accounting for transfer of property rights at revalued value

The revaluation value is to further revalue the various property materials after the verification and verification of various property materials and creditor's rights and debts and the corresponding account processing, and the profit or loss caused by the revaluation shall also be treated as the liquidation profit or loss.

For example, the previous example is still used, and the method of determining the net foreign capital after revaluation at the time of dissolution is used instead. Assume that the balance sheet on the date of dissolution on September 30, 1998 has undergone the investigation and treatment of property materials, creditor's rights and debts by the inventory committee as before. After revaluation, the revaluation value of raw materials was determined to be 223,000 yuan, with an increase of 28,500 yuan; the revaluation value of finished products was 204,000 yuan, and the devaluation was 16,500 yuan; the reassessment value of fixed assets was 1298,000 yuan, and the added value was 118,000 yuan; the cumulative depreciation revaluation value was 756800 Yuan, value added 68800 yuan.

1. The accounting entries after revaluation are as follows:

(1) Borrow: Raw materials 28500

Credit: finished product 16500

Liquidation profit or loss 12000

(2) Borrow: 118000 fixed assets

Loan: Accumulated depreciation 68800

Liquidation profit or loss

After the above accounting entries are posted, the credit balance of the "liquidation profit and loss" account is 34,800 yuan (61200-26400). In order to clear the net income, income tax shall be paid according to regulations. Set the income tax rate at 33% and pay 11,484 yuan. The accounting entries are as follows:

(3) Borrow: liquidation profit or loss 11484

Loan: Bank Deposit-RMB Account 11484

At the same time, the "liquidation profit and loss" account balance (after tax) of 23,316 yuan was transferred to undistributed profits. Its accounting entries are as follows:

(4) Borrow: liquidation profit or loss 23316

Loan: Undistributed profit 23316

After the liquidation is completed, prepare the balance sheet at the end of the liquidation after revaluation.

2. Calculation of property rights transfer and accounting treatment. The net owner's equity of the balance sheet on the end of the liquidation on October 31 was 19,223,316 yuan, calculated by the Chinese and foreign investment each accounting for 50%, and the foreign party's property rights transferred by revaluation should be 961,158 yuan.

(1) The balance of the reserve fund, enterprise development fund, and undistributed profits is distributed at 50% of the capital contribution ratio. The accounting entries are as follows:

Borrow: Reserve Fund 90400

Enterprise Development Fund

Undistributed profit

Loan: Paid-in capital-Chinese investment 131158

Foreign investment 131158

(2) Repayment of foreign property rights after transfer. The equity of the foreign party is 961,158 yuan, and insufficient funds in bank deposits will be resolved by the Chinese capital increase. Assume that the Chinese party has invested RMB 50,000. The accounting entries for the transfer of property rights are as follows:

Borrow: bank deposits-RMB accounts 50000

Loan: Paid-in capital-Chinese investment of 50,000

Borrow: Paid-in capital-Foreign investment 961158

Loan: Bank deposits-RMB accounts 961158

If the Chinese party is unable to raise funds for a while, the shortfall may be separately listed in the account "Payable to the foreign party for transfer of property rights" as a liability, which shall be cancelled after the reorganization of the enterprise.

At this point, the liquidation account processing has basically ended, and the balance sheet, property right calculation table and liquidation profit and loss statement after the transfer of the foreign party's property rights at the end of the liquidation are compiled based on the figures listed above.