What Is an Interest Receivable?

Interest receivable refers to the bond interest that has reached the interest payment period but has not yet been received, which is included in the price actually paid for the short-term bond investment. This part of interest receivable is not included in the initial investment cost of short-term bond investments. However, the actual payment includes bond interest that has not yet matured, and it is included in the initial investment cost of short-term bond investment that does not require separate accounting.

Interest receivable

Interest receivable refers to the interest receivable by an enterprise for bond investments. This includes interest on bonds that have reached the interest payment period but have not yet been received from the purchase price of the bonds, and interest on bonds held during maturity and repayment of principal during the holding period. Excluding the interest receivable for long-term bonds that are purchased by the enterprise for one-time repayment of principal and interest, it shall be set through the second-level account under the financial assets account "

It mainly includes the following situations: First, the enterprise purchases the

I. Loans from undertaking accounting companies,

Interest receivable means

example:

On January 1, 2003, Company A purchased 50,000 yuan for the repayment of the principal and interest of the company with a 5-year term that was issued on that day.

For improvement

The interest receivable and the amortization of each period are calculated as

1. When accruing interest receivable on the inter-bank market bonds and asset-backed securities, the fund shall refer to the "Notice of the People's Bank of China on Improving the Computation Standards for the Maturity Yield of Bonds in the National Inter-bank Bond Market" (Yinfa [2007] No. 200) and the relevant contents of the "Notice of the Central Government Bonds Registration and Clearing Co., Ltd. on Adjusting the Calculation Formula for the Accrued Interest of the Bonds of the Central Bond Comprehensive Business System", use "actual days" to calculate the interest receivable. For the specific formulas, please refer to Annex 1a. 1b.

2. When accruing interest receivables for discounted bonds on exchanges, the Fund shall refer to the relevant content of the Notice of the Securities and Futures Commission of the People s Bank of China on the Implementation of Net Price Transactions on Discounted Treasury Bonds (Caiku [2007] No. 21) Use "actual days" to calculate interest receivables; when accruing interest receivables on other exchange market bonds and asset-backed securities, the Fund should refer to the "China Securities Regulatory Commission of the People's Bank of China on the trial implementation of net treasury bond transactions. The relevant content of the "Notice of Matters" (Caiku [2001] No. 12) still retains the existing method and uses "actual days / 365" to calculate interest receivable. The specific formula is shown in Annex 2.

3. In order to more reasonably reflect the daily income of bonds held by money market funds, when measuring the bonds using the amortized cost of the real interest rate method, money market funds should refer to the calculation method described in Article 4 of Annex 3.

4. This method shall be implemented as of March 17, 2008. On March 17, 2008, the processing was performed in the following order:

(1) For bonds that use "actual days" to calculate interest receivable, debit "interest receivable" and credit "interest income-bond interest income".

(2) For money market funds that use the method described in Article 4 of Annex 3 to measure bonds, the amortized cost before amortization (as defined in Article 3 of Annex 3) is used to calculate the new effective daily interest rate, and then the new effective daily interest rate is used Calculated interest income, debit "interest receivable" (calculate the interest receivable on the day according to the method described in Annexes 1 and 2), debit "bond investment-discount premium" (rolling difference), and credit " Interest income-bond interest income "(amortized cost before amortization × actual daily interest rate).

After the money market fund switched to using "actual days" to calculate interest receivables on bonds, the average remaining maturity of the investment portfolio was correspondingly changed to "actual days".

V. Companies should measure and evaluate the impact of related method adjustments on fund income and investment in advance, and be fully prepared in terms of system commissioning and investment operations, to avoid the first day of method adjustments that have a significant impact on fund income and fund net value.

Annex 1a: Calculation formula for interest receivables on interbank market bonds and asset-backed securities

Appendix 1b: Calculation formula for interest receivables on interbank market bonds and asset-backed securities

Appendix 2: Calculation formula of interest receivable on exchange bonds and asset-backed securities

Annex 3: Calculation method of daily amortization of underflow discounts of money market funds under the effective interest rate method

I. Basic Principles of Money Market Funds Using Real Interest Rate Method

When calculating the actual interest rate, the entire process of accruing interest and amortizing the premium discount from the purchase date to the last interest calculation date is simulated. The discount balance is zero, that is, amortized cost = face value.

Second, the entire process of simulation (the following days are natural days)

Interest receivable on day T = Round ((the balance of the number of bonds on day T-the number of bonds that were not delivered on day T + the number of bonds that were not delivered on day T) × face value × coupon rate, 2); of which:

(1) Interest-bearing bonds that pay interest on average

Daily interest rate = (the coupon rate corresponding to day T / 1 the number of interest payments in one year) / the actual number of days of the interest payment cycle corresponding to day T;

(2) Interest-bearing bonds that pay interest on actual days

Coupon daily interest rate = Coupon interest corresponding to day T / the actual number of days in the interest-bearing year in which the interest payment period corresponding to day T is located;

Amortized cost before amortization on day T = Amortized cost after amortization on day T-1 + amortized cost confirmed on buy transaction delivered on T day T + 0 delivery-Amortized cost confirmed on sell transaction delivered on T day 0 + 0 Amortized cost

Interest income recognized on T day = round (amortized cost before T day amortization × actual daily interest rate, 2);

T day amortization premium discount = T day interest receivable-interest income recognized on T day;

Amortized cost after T-day amortization = Amortized cost before T-day amortization-Premium discount on T-day amortization;

T + n day is the last interest calculation day before the end of the duration.

Interest receivable on T + n days = Round ((the balance of the number of bonds on T day-the number of bonds that have not been delivered on T day + the number of bonds that have not been delivered on T day) × the face value × the nominal daily interest rate, 2)

(1) Interest-bearing bonds that pay interest on average

Daily interest rate = (the coupon rate corresponding to T + n days / 1 the number of interest payments in a year) / the actual number of days of the interest payment cycle corresponding to T + n days;

(2) Interest-bearing bonds that pay interest on actual days

Coupon daily interest rate = Coupon interest corresponding to T + n days / T + n day corresponding interest payment period in which the interest-bearing year is in the actual days;

Interest income recognized on T + n days = round (amortized cost after amortization on T + n-1 days × actual daily interest rate, 2);

Amortized premium discount on T + n day = interest receivable on T + n day-interest income recognized on T + n day;

Amortized cost after amortization on T + n day = Amortized cost after amortization on T + n-1 day-T + n amortized premium discount = (T-day bond quantity balance-T-day undelivered purchases Number of bonds + number of bonds not sold on T day) × par value;

Third, the simplified formula of the simulation process

M: face value of each bond

y: effective daily interest rate

Z: the premium discount balance of each bond

Z0: Initial premium discount of each bond (Z0 = (T-day bond premium discount balance-T-day undelivered purchase transaction confirmed premium discount + T-day undelivered sales transaction confirmed premium discount) / (T-day bond Quantity balance-the number of bonds that were not delivered on day T + the number of bonds that were not delivered on day T))

i: coupon daily interest rate, i0, i1, i2, ..., it, t + 1 is the number of remaining interest payments if the future interest rate is foreseeable

(1) Interest-bearing bonds that pay interest on average

i = (the coupon rate corresponding to T + n days / 1 the number of interest payments in one year) / the actual number of days of the interest payment cycle corresponding to T + n days;

(2) Interest-bearing bonds that pay interest on actual days

i = the coupon rate corresponding to T + n days / the actual number of days in the interest-bearing year in which the interest payment period corresponding to T + n days is located;

The natural day between the date when the actual interest rate is calculated and the maturity date of the bond is n, where the day before the expected change in interest rate is the k1, k2, k3, k4, ..., kt day, respectively;

Interest receivable

The daily discounted premium is (M + Z) y-Mi

In the last period, the premium and discount are fully amortized, that is, Zn = 0, and the following formula is obtained:

Interest receivable

In the above iterative formula, the actual daily interest rate range is (-1) / 365 4/365, and the interpolation error is 0.00000001 (default value, configurable);

The actual daily interest rate result remains 12 decimal places (default value, configurable).

Fourth, the calculation method

On the day of bond purchase or interest rate adjustment, calculate Z0, obtain the values of M, i, k, n, and use the formula to calculate the actual daily interest rate y, and then accrue interest and amortization premium discount daily:

(1) Interest receivable on day T is calculated according to existing methods;

(2) Amortized cost before amortization on day T = amortized cost after amortization on day T-1 + amortized cost confirmed on buy transaction delivered on day T + 0 delivery-sold on day T + 0 delivery Amortized cost of transaction recognition;

(3) Interest income recognized on T day = round (amortized cost before T day amortization × actual daily interest rate, 2);

(4) T day amortization premium discount = T day interest receivable-interest income recognized on T day;

(5) On the last interest calculation day, the remaining premium discount is fully amortized.

Note: This method is based on the basic principle of amortized cost recognition under the actual interest rate method and the calculation process of the amortization of the premium discount. The purpose is to simulate the calculation of the amortization of the premium discount after the last discount of the premium discount is amortized Using the interpolation method, the actual daily interest rate is calculated, so that the balance of the premium discount account gradually approaches zero until the maturity date is finally zero, which is essentially discounted to the book value of the bond with daily bond interest as the future cash flow. The daily discount rate is used as the actual daily interest rate, and the interest rate of each bond is used as the future cash flow to discount the bond's book value. The annual discount rate obtained is not much different.

I. This account calculates the interest receivable of enterprises for trading financial assets, held-to-maturity investments, available-for-sale financial assets, issuing loans, deposits with central banks, withdrawing funds, and buying resale financial assets.

The interest obtained during the period from the one-time repayment of principal and interest purchased by the enterprise to the holding of the maturity investment is accounted for in the "holding to maturity investment" account.

2. The detailed account can be calculated by the borrower or the invested unit.

3. The main accounting treatment of interest receivable.

(1) For transaction financial assets obtained by an enterprise, the interest included in the payment price that has reached the interest payment period but has not been received shall be debited to the account, and the fair value of the transaction financial assets shall be debited to "transactional "Financial assets-costs" account, according to the transaction costs incurred, debit the "investment income" account, according to the actual amount paid, credit "bank deposits", "deposits from the central bank", "settlement reserves" and other subjects .

(2) The obtained held-to-maturity investment shall be debited to the "held-to-maturity investment-cost" account at the face value of the investment, and the interest payment period included in the price paid shall not be received yet. The interest on the account is debited, and the "bank deposits", "deposits from the central bank", "settlement reserves" and other subjects are credited according to the actual amount paid, and the difference is debited or credited to "hold to Maturity Investment-Interest Adjustment ".

On the balance sheet date, if the held-to-maturity investment is an installment interest payment and a one-off repayment of the bond investment, the unreceivable interest receivable determined at the coupon rate shall be deducted from the account, and the amortization of the held-to-maturity investment The interest income determined by the cost and actual interest rate calculation is credited to the "Investment Income" account, and the difference is debited or credited to the "Hold to maturity investment-interest adjustment" account.

If the held-to-maturity investment is a one-time repayment of principal and interest bond investment, the unreceivable interest receivable determined at the coupon rate on the balance sheet date shall be debited to the "Hold-to-maturity investment-accrued interest" account The interest income determined based on the amortized cost of the held-to-maturity investment and the actual interest rate is credited to the "investment income" account, and the difference is debited or credited to the "held-to-maturity investment-interest adjustment" account .

(3) The investment in available-for-sale bonds obtained shall be handled in accordance with the relevant provisions of (2).

(4) Interest income on held-to-maturity investments and available-for-sale bond investments that are impaired shall be handled in accordance with the relevant provisions of the "loan" subject.

(5) Loans issued by enterprises shall be calculated on the balance sheet date based on the loan's contract principal and contract interest rate, and the unreceivable interest receivables shall be calculated and deducted from the account, and the determined interest shall be calculated based on the amortized cost of the loan and the actual interest rate Income is credited to the "Interest Income" account and the difference is used to debit or credit the "Loan-Interest Adjustment" account.

(6) When the interest receivable is actually received, debit the subjects such as "bank deposits" and "deposits from the central bank" and credit the undergraduate subjects.

4. The debit balance at the end of the course reflects the interest that the enterprise has not yet recovered.