What Is Annuity Income?

Enterprise annuity fund income refers to the inflow of economic benefits formed by the enterprise annuity fund in investment operations. Corporate annuity fund income can bring about an increase in corporate annuity fund assets, and may also reduce corporate annuity fund liabilities, or both. The enterprise annuity fund shall calculate and confirm the fund income on a daily or weekly basis, and conduct account processing.

Enterprise annuity fund income

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Enterprise annuity fund income refers to the inflow of economic benefits formed by the enterprise annuity fund in investment operations. Corporate annuity fund income can bring about an increase in corporate annuity fund assets, and may also reduce corporate annuity fund liabilities, or both. The enterprise annuity fund shall calculate and confirm the fund income on a daily or weekly basis, and conduct account processing.

Chinese name

Enterprise annuity fund income

Meaning

Inflow of economic benefits

Types of

Fund income

Meaning

Increase in assets of corporate annuity funds

Enterprise annuity fund income consists of the following items:

(1) Interest income from deposits;

(2) Revenue from resale securities;

(3) Income from changes in fair value;

(4) Investment income;

(5) Other income such as making up for risk reserves.

In the enterprise annuity fund income project, the content of changes in fair value, investment income and its accounting processing have been introduced in the third section "Enterprise Annuity Fund Investment Operation". The following mainly introduces the relevant contents of interest income from deposits, income from resale securities, and other income account processing.

(1) Accounting for interest income from deposits

Interest income from deposits includes interest income such as demand deposits, time deposits, settlement reserves, and transaction margin. According to the enterprise annuity fund accounting standards and its application guidelines, the enterprise annuity fund shall recognize interest income on deposits on a daily or at least weekly basis, and shall be accounted for based on the amount of deposit principal and applicable interest rates. When accruing interest on bank deposits, settlement reserve deposits, etc. on a daily or weekly basis, debit the "interest receivable" account and credit the "deposit interest income" account.

(Example 11-8) On September 1, 20 × 7, the deposit principal of an enterprise annuity fund in a commercial bank was 1.5 million yuan. Assuming 365 days a year, the annual interest rate on bank deposits was 1.98%, which ended at the end of each quarter Interest, the corporate annuity fund is valued daily. Accrued interest on daily bank deposits = deposit principal × annual interest rate ÷ 365 = 1500000 × 1.98% ÷ 365 = 81.37 (yuan)

The enterprise annuity fund account processing is as follows:

(1) When accruing deposit interest daily

Borrow: Interest receivable 81.37

Loan: Deposit interest income 81.37

(2) When deposit interest is received every quarter (assuming that the quarterly interest rate is 7425 yuan)

Borrow: bank deposit 7425

Loan: Interest receivable 7425

(II) Accounting treatment of proceeds from the purchase of resale securities

The business of reselling securities means that the enterprise annuity fund and other enterprises buy the securities at a certain price in a contract or agreement, and then resell the batch of securities to other enterprises at the price stipulated in the contract on the expiration date to obtain Interest income securities business. According to the enterprise annuity fund guidelines and its application guidelines, when an enterprise annuity fund purchases securities, it shall be recognized as an asset at the actual payment price, and within the margin trading period, the purchase resale security price and the agreed interest rate The interest accrued on a daily or weekly basis recognizes the income from resale securities.

The enterprise annuity fund shall set up subjects such as "buy-back resale securities" and "buy-back resale securities income", etc., to conduct account processing for the buy-back resale securities business. When buying securities for payment, debit the "Buy Resale Securities-XX Securities" account and credit the "Settlement Reserve Fund" account based on the actual payment. When accruing interest, debit the account of "Interest Receivable" and credit the account of "Revenue from Repurchase of Securities". When the repurchase of repurchased securities expires, debit the "settlement reserve" account based on the actual amount received; credit the "purchase of repurchase securities" account at the time of purchase; based on the unpaid interest received , Credit the account of "interest receivable"; according to the accrued interest of this period, credit the account of "receipt of resale securities". At the end of the period, the balance of the "Proceeds from the resale of securities under repurchase" was transferred to the "Proceeds from this period".

(3) Accounting for other income

Other income refers to income other than the above-mentioned income, such as making up for losses in risk reserves. According to the "Provisional Measures for the Management of Enterprise Annuity Funds", the investment manager shall withdraw a certain amount of the enterprise annuity fund investment management risk reserve according to a certain percentage of the investment manager management fees collected in the current period, which shall be stored by the custodian's special account and used to make up the enterprise Annuity fund investment loss. The withdrawal ratio of enterprise management annuity fund investment management risk reserve is 20%, and the balance can no longer be withdrawn when the balance reaches 10% of the net assets of the investment management enterprise annuity fund. When the enterprise annuity fund obtains investment management risk reserves to cover losses, it shall be included in other income based on the actual amount received.

(Example 11-9) On January 10, 20 × 7, a certain enterprise annuity fund recognized a loss of 250,000 yuan on that day. According to regulations, the company's investment management risk reserve of 257,300 yuan was used to make up for losses. Known: the enterprise annuity fund is valued daily; the risk reserve balance drawn by the investment manager is 600,000 yuan,

The enterprise annuity fund account processing is as follows:

Borrow: bank deposit 250 000

Loans: other income-risk reserves make up losses of 250 000