What Is an Accounting Practice?

Accounting practice (Practice of Accounting) refers to the process by which an accountant performs accounting processing, generally from the beginning of filling out a document to the end of preparing a statement. Also called accounting bookkeeping.

Accounting Practice

(Another name for accounting)

In the era of the planned economy,

Division and merger of contracts

Enterprises should generally conduct accounting treatment in accordance with individual construction contracts. However, in some cases, in order to reflect the essence of a contract or a group of contracts, it is necessary to separate individual contracts or combine several contracts.

(I) Division of contract

Although sometimes only one contract is signed in the form of asset construction, the assets can be separated from each other in terms of business negotiation, design and construction, and settlement of prices. In essence, there are multiple contracts that should be treated as different in accounting Accounting object.

A construction contract that includes the construction of several assets that meets the following conditions at the same time, each asset should be separated into a single contract: (1) each asset has an independent construction plan; (2) each asset is carried out separately with the client During negotiation, both parties can accept or reject the contract terms related to each asset; (3) The revenue and cost of each asset can be individually identified.

(2) Contract consolidation

Although some assets have signed many contracts in the form of construction, the assets are inseparable in terms of design, technology, function, and final use. They are essentially a contract and should be used as an accounting object in accounting.

A group of contracts, whether corresponding to a single customer or multiple customers, should be combined into a single contract when the following conditions are met: (1) the combination is signed as a package transaction; (2) the combination is closely related, and each contract has actually been Form an integral part of a comprehensive profitability project; (3) The combination is performed simultaneously or sequentially.

(3) Construction of additional assets

The construction of additional assets shall meet a single contract if one of the following conditions is met: (1) the additional assets are significantly different in design, technology or function from one or more of the assets included in the original contract; (2) the agreement The cost of additional assets need not take into account the original contract price.