1, the two concepts are different: the total amount method means that when confirming government subsidies, the full amount is recognized as income in one lump sum or in stages, rather than as a deduction of the book value or cost of related assets; The net method refers to the recognition of government subsidies as the book value of related assets or the deduction of compensated costs and expenses.

2. Different accounting treatment: enterprises that adopt the gross method can confirm government subsidies through subjects such as "deferred income" and "other income"; Enterprises adopting the net method can confirm the government subsidy through the "deferred revenue" account, and write off the book value of assets through deferred revenue when the relevant assets reach the predetermined usable state or the predetermined usable state.

Total amount method and net amount method belong to the methods for enterprises to confirm government subsidies. Government subsidy refers to the monetary assets or non-monetary assets obtained by an enterprise from the government for free, excluding the capital invested by the government as the owner of the enterprise.

Supplement: How to deal with the accounts of earmarked income?

According to the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on the Enterprise Income Tax Policy of Government Funds on Administrative Fees of Fiscal Funds (Caishui [2008] No.65438+051); ?

1. The entry that belongs to the special financial appropriation for special purposes and cannot be included in the total income of the current year is: debit: bank deposit loan: long-term payables -XX special appropriation. ?

2, belonging to the general financial allocation or tax rebate nature, no designated purpose, included in the "subsidy income".