What Is an Accrued Liability?
Responsibility accounting refers to an internal accounting control system in order to meet the requirements of the internal economic responsibility system of an enterprise, to plan and control the economic operations of various responsibility centers within the enterprise, to achieve performance evaluation and evaluation. Close relationship, the ideal responsibility accounting system should reflect and support the corporate organizational structure. [1]
Responsible Accounting
- Earlier
- In order to ensure the smooth realization of the company's budget goals, it truly and objectively reflects and evaluates the operating results of various companies and central offices and the completion of the budget goals.
The role of liability accounting
- The role of the company's responsible accounting is based on financial accounting, in order to meet the requirements of modern enterprise management, to evaluate the economic benefits of various member units within the company in a true and objective manner. Under the unified accounting principles, through adjustments to financial accounting, The performance evaluation of each unit provides an accurate reporting basis. Each period of financial analysis report of each unit must be based on the responsibility accounting statement.
Article 2 Principles of Responsible Accounting
- Benefit and cost (cost) matching principle
- On the basis of financial accounting, liability accounting makes accounting adjustments in accordance with the principle of income and expense (cost) ratio, deducts expenses and costs that do not belong to the current period, and increases and eliminates expenses and costs that should be reflected in the current period but not reflected. In order to objectively reflect the correct ratio of operating unit income and expenditure, and in determining the revenue, strictly identify the corresponding relationship between revenue and expenses, and make objective adjustments to the benefits that do not correspond to the cost of expenses.
- Controllability principle
- Means that each business unit is responsible for the economic activities and operating results that it can control within its area of competence, and is responsible for the income and expenses generated by the non-control areas of each unit (or the income and expenses that do not belong to each unit through operation). Accounting adjustments and the elimination of various subsidies given by the head office to truly reflect its operating results.
- Consistency principle
- It means that the accounting measurement of the operating results of the responsible units within the company must be consistent with the accounting caliber of the company's headquarters.When the company's accounting center reviews that the accounting results do not meet the principles of responsible accounting, it has the right to adjust it to achieve assessment under the same standard system. The purpose of evaluating the work performance of each responsible unit.
Article 3 Scope of the implementation of liability accounting
- Profit center of the company's responsible accounting assessment
- Including branch xxx, branch xxx, and branch xxx.
- Expense Center of the Company's Responsible Accounting Assessment
- Including the head office (excluding the measurement room, peripheral maintenance group, and sewage treatment room), the president's office (excluding the restaurant and the service department with income of the logistics department), accounting management center, and manpower Resource development management center, party and mass office, marketing planning supervision center, quality control center, infrastructure center, milk source company.
Responsibility Accounting Article 4 Recognition Procedures for Responsible Accounting Assessment
- 1.The financial department of each branch conducts its own responsibility accounting in accordance with the company's responsibility accounting system.The company's accounting center reviews and confirms the responsibility accounting statements of each branch on a quarterly basis, and each branch adjusts according to the results of the review and confirmation as the final responsibility The results of the assessment are reported. During the implementation of the responsibility accounting system, the Accounting and Finance Center conducted random checks on the implementation of the responsibility accounting system of each branch on a monthly basis to confirm.
- 2.Responsible accounting assessment of each expense center is the responsibility of the Accounting and Finance Center, and the results of the assessment are announced monthly.
- 3. On the basis of the head office's accountability assessment of each company, each company and center office must further develop the accountability operation methods of the institution.
Responsibility Accounting Article 5 Relationship between Responsibility Accounting and Budget Management
- 1.The financial budget of each unit is prepared based on the principle of responsibility accounting.
- 2.The evaluation of the budget execution results by each expense center and profit center is based on the results of responsibility accounting.
- Article 6 Accounting procedures and methods of liability accounting
- Procedures for responsible accounting
- Each accounting unit shall calculate and produce financial accounting statements in accordance with the original financial system regulations of the Accounting Center.On the basis of financial accounting, independently establish a responsible accounting account and reporting system.According to the principles of responsible accounting and the provisions of this system, Expenses (costs) are analyzed and adjusted, and based on the adjustment description and necessary confirmation, a liability accounting voucher is produced, recorded in the corresponding adjustment account, and a liability accounting statement is produced based on the account adjustment record.
- Account handling method of liability accounting
- 1.For operating income that is not a responsible unit and has been included in the financial accounting of the unit in accordance with the requirements of the headquarters policy, it should be excluded from its operating results and the costs and benefits should be adjusted accordingly. Item content:
- (1) Adjustment of the milk price by the company headquarters.
- The milk cost price of the xxx branch company and xxx company includes the cost adjustment content from the milk source company or the company's headquarters. When performing responsibility accounting, the following adjustments should be made according to the facts: the monthly milk source company (or headquarters) shall notify in writing The adjustment amount of the two companies, the two companies based on written notice to produce vouchers for responsibility accounting.
- Make the following adjustment entries:
- Borrow: cost of main business
- Loan: Responsibility Accounting Adjustment
- Borrow: profit for the year
- Loan: Cost of Main Business
- (2) Adjustment of packaging materials discount income.
- After the xxx branch receives the notification of the confirmation of the discount of the packaging materials, it will make an account in accordance with the original financial accounting processing procedures, calculate the cost reduction of the confirmation of the discounts of the packaging materials, and make a voucher in accordance with the property management procedures. Adjustment.
- Make the following adjustment entries:
- Borrow: cost of main business
- Loan: Responsibility Accounting Adjustment
- Borrow: --- profit for the year
- Loan: Cost of Main Business
- (3) Out of the need of financial planning, each company transfers costs to an external independent accounting institution, but when compensation is required in the future, liability accounting adjustments should be made based on the cost or income transfer amount confirmed in writing by both parties.
- Make the following adjustment entries:
- A When transferring fees:
- Borrowing: related cost subjects
- Loan: Responsibility Accounting Adjustment
- Borrow: profit for the year
- Loans: related expense items
- B Compensation in the future:
- Borrowing: Responsibility Accounting Adjustment
- Credit: Related Expense Accounts
- Borrowing: related cost subjects
- Loan: Profit for the year
- (4) other items that should be adjusted.
- When certain income (or expenses) are adjusted in accordance with the financial policies of the headquarters or branch, which does not truly reflect the actual operating results, according to the principle of liability accounting, corresponding adjustments should be made according to the actual operating conditions of the operating unit.
- Adjust the entries as follows:
- Borrow: (or loan) the corresponding subject
- Loan (or borrowing): liability accounting adjustment
- Borrow (or loan): profit for the year
- Loan (or borrow): corresponding subject
- 2.For the expense items that should have been borne by the responsible unit according to the principle of benefit cost ratio, which are not included in the company's operating accounting due to some objective reasons of the company, they should be included in the accounting category to reflect in the liability accounting, and Related fees are adjusted.
- It includes the following aspects:
- (1) Due to the company's policy arrangements or business operations lag, when the branches actually occupy the company's assets, but the depreciation and amortization of unused asset occupation fees should be raised, it should be adjusted according to the value of the actually occupied assets The depreciation fee and asset occupancy fee are adjusted based on: The monthly difference between the book value of the fixed asset allocated and the value of the actually used asset is verified by the Fixed Assets Management Accountant of the Accounting and Financial Center every month and the branch companies are notified in writing. The notice actually adjusts the depreciation expenses and asset occupation expenses of fixed assets, and the calculation method is implemented according to the relevant system formulated by the Finance and Accounting Center. For the low-value consumables in use, the amortization expenses are not calculated according to the requirements of the company's financial system. , The account adjustment of responsibility accounting shall be carried out in accordance with the regulations of the system.
- Adjust the entries as follows:
- Borrowing: Management expenses (main business costs)
- Loan: Responsibility Accounting Adjustment
- Borrow: profit for the year
- Loan: administrative expenses (main business costs)
- (2) Adjustment of expenses to be assessed.
- Due to the requirements of tax law, each branch company adopts the straight-line amortization method to calculate the expenses to be amortized.When the amortization of related expenses based on the straight-line method does not correctly reflect the ratio of actual income and expenses in seasonal operations of the enterprise, it can be used in liability accounting The output value amortization method is used to adjust the cost.The specific calculation basis can be agreed by each branch and the accounting center.
- Adjust the entries as follows:
- Borrowing (or loan): administrative expenses (main business costs)
- Loan (or borrowing): liability accounting adjustment
- Borrow (or loan): profit for the year
- Loan (or borrow): management expenses (main business costs)
- (3) If other violations of the principles of recognition and measurement of revenue expenditures and capital expenditures cause the accounting results to be inconsistent with the actual results, liability accounting adjustments shall be made.
- Adjust the entries as follows:
- Borrow (or loan): income or expense subjects
- Loan: Responsibility Accounting Adjustment
- Borrow (or loan): profit for the year
- Loan (or borrow): income or expense account
- (4) Adjustment of accrued expenses. Due to the requirements of the company's financial policy, the accrued expenses that have occurred in the current period are not reflected in financial accounting or determined according to the principle of income and expense ratio and output value method. When it is large or insufficient, corresponding accounting adjustments should be made.
- Adjust the entries as follows:
- Borrow (or loan): operating expenses (or related subjects)
- Loan: Responsibility Accounting Adjustment
- Borrow (or loan): profit for the year
- Loan (or borrow): operating expenses (or related subjects)
- When this adjustment is added to financial accounting in subsequent accounting periods, liability accounting is adjusted in the opposite direction.
- 3.Recognize sales revenue based on the principle of caution.
- (1) After the goods are issued from the company's finished product warehouse, they are in-transit products or sub-warehouses, and if they have not officially entered the circulation channel, if financial accounting has confirmed sales revenue, the following accounting adjustments should be made:
- Adjust entries based on recorded sales revenue
- Borrow: main business income
- Loan: Responsibility Accounting Adjustment
- Borrow: profit for the year
- Loan: main business income
- At the same time, adjust the entry according to the cost of goods issued
- Borrowing: Responsibility Accounting Adjustment
- Loan: Cost of Main Business
- Borrow: cost of main business
- Loan: Profit for the year
- (2) If the goods have been issued, invoices or sales documents have not been issued, and the purchaser has not confirmed receipt, and financial accounting has temporarily estimated sales revenue, liability accounting should be adjusted as follows:
- Entries by recorded sales revenue
- Borrow: main business income
- Loan: Responsibility Accounting Adjustment
- Borrow: profit for the year
- Loan: main business income
- At the same time, adjust the entry according to the cost of goods issued
- Borrowing: Responsibility Accounting Adjustment
- Loan: Cost of Main Business
- Borrow: cost of main business
- Loan: Profit for the year
- (3) When the goods have been issued, invoices or sales documents have been issued, but the payment has not been recovered, and the collection period has exceeded the credit period by more than one month, the following adjustment entries are made based on the amount of receivables:
- Borrowing: administrative expenses
- Loan: Responsibility Accounting Adjustment
- Borrow: profit for the year
- Loan: administrative expenses
- (4) Goods have been issued, invoices or sales documents have been issued, and the total amount of uncollected goods in the current period has exceeded the credit limit, and adjustments are made based on the amount exceeding the credit limit:
- Borrowing: administrative expenses
- Loan: Responsibility Accounting Adjustment
- Borrow: profit for the year
- Loan: administrative expenses
- 4.Adjust the related income and expenses according to the internal market chain of each branch and the business transactions, claims, and claims of each unit.
- After the company implements market chain management, the settlement of claims, claims and business transactions among the various agencies within the company should be carried out in a timely manner. If objective transfers cannot be made in a timely manner, accountability adjustments should be made.
- When a claim or internal transfer of income is due, make the following adjustment entries:
- Borrowing: Responsibility Accounting Adjustment
- Loan: claim or transfer income
- Borrow: claim or transfer income
- Loan: Profit for the year
- When claims or transfer expenses are due, make the following adjustment entries:
- Borrow: claim or transfer expenses
- Loan: Responsibility Accounting Adjustment
- Borrow: profit for the year
- Credit: claim or transfer expenses
- When this adjustment is settled in the financial accounting of subsequent accounting periods, liability accounting makes the opposite adjustment.
- 5.According to the company's management requirements, through target assessments and gate assessments, after each unit has obtained relevant positive and negative incentives, it should perform liability accounting adjustments based on the actual amount of positive and negative incentives. The adjustment entries are as follows:
- When receiving a positive incentive:
- Borrowing: Responsibility Accounting Adjustment
- Loan: Incentive income
- Borrow: incentive income
- Loan: Profit for the year
- Make a negative entry when receiving a negative incentive (Note: This adjustment is for record only and is explained in the notes)
- 6.According to the eight losses of the asset impairment reserve system formulated by the company, due to the approval process and other reasons, financial accounting cannot be used for accounting treatment. In order to truly reflect the operating results, the following responsibility accounting entries are required:
- Borrowing: administrative expenses (or non-operating expenses)
- Loan: Responsibility Accounting Adjustment
- Borrow: profit for the year
- Loan: administrative expenses
- When this adjustment is added to financial accounting in subsequent accounting periods, liability accounting is adjusted in the opposite direction.
Article 6 Methods of Responsibility Accounting
- 1. On the basis of financial reports prepared in accordance with the requirements of the Accounting Standards for Business Enterprises and the Accounting System for Business Enterprises, each responsible unit establishes a liability accounting adjustment account and a liability accounting book in accordance with the principles of liability accounting, and periodically on a monthly basis. Adjust the financial report of the unit and complete the responsibility accounting statement (depending on the establishment of the financial accounting center), so as to form a complete set of responsibility accounting systems that are compatible with each operating unit.
- 2.In the process of responsible accounting and assessment, the financial department and accounting department of each company's accounting department shall strictly implement the requirements of responsible accounting. The results of the implementation shall be evaluated and fulfilled in accordance with the relevant provisions of the OEC financial management gate indicator system.
- 3.The monthly accounting center reviews the responsible accounting statements of each company and center room.If any objections are found, the other party is notified in a timely manner, and after the companies and the center room determine the amendments, they can be used as the final evaluation basis.
- 4. Every quarter, the Financial Management Department of the Accounting and Finance Center will jointly audit with the Audit Department the implementation of the responsibility accounting of each company and central office. Based on the audited operating results and financial status, the OEC financial management gate indicator system of each unit will be confirmed. The evaluation and confirmation results are linked to the responsibility of the responsible person.
Article 7 Management and assessment of the implementation of responsibility accounting
- 1.After the implementation of the responsibility accounting reporting system, each operating unit must continue to submit financial accounting statements before the adjustment of liability accounting in accordance with the relevant regulations of the Accounting Center.
- 2.Each company, the central office's financial department and the accounting department's accounting department will report the operation of their department according to the responsibility accounting method to the financial management department of the accounting center in the form of a liability accounting analysis report before the 11th of the following month.
- 3.According to the responsibility accounting analysis report submitted by each responsible unit on a monthly basis, based on a comprehensive consideration of the economic situation of the country and the industry, the Finance and Accounting Center will report to the company's leaders on the 15th of each month and the 15th of the first quarter of the next quarter. Last quarter analysis report.
- 4.If the liability accounting account is incomplete and the liability accounting is incomplete, refer to the relevant system of the company and impose a fine of not less than 2,000 yuan on the financial officer of the department.
- 5.For those who fail to accurately perform liability accounting according to the requirements and have seriously affected the results of the liability assessment, refer to the relevant provisions of the company's OEC financial management gate indicator system and give a financial penalty of not less than 2% of the annual salary to the person in charge of the department.
- 6.For the responsibility accounting management system that is not clearly specified, the responsibility differences found after auditing, each responsible unit shall promptly conduct the accountancy accounting after exchanging opinions with the audit department; if no agreement is reached and there is a dispute If yes, the company's chief financial officer should be invited to make a decision or submit a production and business meeting to discuss the decision in the form of a motion.
- 7.According to the "Accounting Standards for Business Enterprises" and "Accounting System for Business Enterprises", the accounting processing has not been adjusted in the accounting of responsibility. Except for penalties in accordance with the relevant management system of the enterprise, it applies to Article 5 of this system Provisions.