The common points in the division of accounting elements between the two sides of the Taiwan Strait: the meanings and contents of assets, liabilities and owners' equity are exactly the same.
The main difference between the two sides of the Taiwan Strait in the division of accounting elements: Chinese mainland clearly divides dynamic elements into three elements: income, expenses and profits, while Taiwan Province Province only expresses the change results of dynamic elements in a certain period by profit and loss, and participates in the balance of static three elements. In international accounting standards, accounting elements are divided into five elements: assets, liabilities, property rights, income and expenses. Moreover, it is clear that "the definition of income includes income and income" and "the definition of expenses includes losses, as well as losses in the daily activities of enterprises".
Common ground between China and international accounting elements: The six accounting elements in China are the same as the five accounting elements in international accounting standards, and their basic ideas and models are the same.
The difference between China and international accounting elements: China regards "profit" as an independent accounting element, while international accounting standards do not; International accounting standards make it clear that income elements include income and income, while China's income elements are only operating income; International accounting standards make it clear that its cost elements include expenses and losses, while China's cost elements do not include losses. As for the content of income elements and expense elements, international accounting standards are large caliber, while China's accounting standards are small caliber. Because there is no separate "comprehensive net profit" element in international accounting standards, if income is only operating income and expenses do not include losses, then the economic matters of gains and losses will be separated from the five accounting elements. Therefore, adopting large caliber is the inevitable choice of international accounting standards. Accounting standards define the elements of "income" and "expense" as small caliber, because "profit" has a separate element, and the economic matters of "gain" and "loss" are summarized in the "profit" element. That is to say, the elements of profit in China accounting standards include gains and losses, so the elements of income and expenses are adopted. Chinese mainland is divided into six elements: assets, liabilities, owners' equity, income, expenses and profits.
superiority
1. Accounting elements and accounting objects are harmonious in theory. After nearly half a century's research, China's accounting circles have gradually reached a consensus on the understanding of enterprise accounting objects: there are two kinds of capital movements in enterprises: static and dynamic. As the basic classification of accounting objects, accounting elements belong to the second level of accounting objects.
2. Accounting elements should be coordinated with accounting equation and financial statement theory. As mentioned above, the quantitative relationship among assets, liabilities and owners' equity is summarized as the first accounting equation: assets = liabilities+owners' equity, which is also the theoretical basis for establishing the balance sheet; The quantitative relationship among income, expense and profit is summarized as the second accounting equation: income-expense = profit, which is also the theoretical basis for establishing the income statement. The division of the four accounting elements in Taiwan Province Province highlights the static elements, and does not regard income, expenses and profits as independent accounting elements, but covers income, expenses and profits with "profit calculation".
disadvantaged
1. It is feasible to treat gains and losses as accounting elements respectively, but because the definition of "profit" is vague, it is easy to cause multiple contradictions.
2. Article 44 defines "income" as "income is the operating income realized by an enterprise in its business activities such as selling goods or providing services". Operating income is only the main part of enterprise income, which is not equal to income. The definition of "income" here makes the mistake of matching the big concept with the small content.
Ten elements
The Financial Accounting Standards Committee divides accounting elements into assets, liabilities, equity, owner's investment, funds allocated to owners, total income, operating income, expenses and profit and loss.
superiority
1, highlighting the rights and interests elements, requires not only static rights and interests information, but also important rights and interests change information, which is conducive to safeguarding the owners' rights and interests.
2. Highlight the elements of total income, requiring not only operating income and expenses, but also non-operating income and expenses-profit and loss. Generally speaking, there are four more accounting elements in the United States than in Chinese mainland, which makes the classification of equity and total income elements more detailed and comprehensive.
disadvantaged
1. Equity includes the owner's investment and the money allocated to the owner, that is to say, equity and the owner's investment and the money allocated to the owner are inclusive, and it is unscientific to regard the three elements with inclusive relationship as three elements in classification logic.
2. Operating income has matching expenses, but profit has no matching expenses; Expenses have matching business income and losses have no matching business income, which is an important difference between business income and income, expenses and losses. In this sense, it is reasonable to take profit and loss as an element alongside operating income and expenses. However, profit and loss are the content of total income, and it seems inappropriate to take profit and loss and total income as parallel elements.
Common ground of accounting elements division between China and America: Both China and America divide accounting elements into static elements and dynamic elements. Static elements and balance sheet. The measurement of financial status is directly related, and the dynamic factors are directly related to the measurement of operating performance in the income statement.
Differences in accounting elements between China and the United States: The United States regards the owner's investment and the money allocated to the owner as two independent accounting elements, which affect the equity elements. The United States regards profit and loss as two independent accounting elements, which affect the total income. Through comparison, we can see that the basic thinking and pattern of accounting elements division between China and the United States are the same. If the United States does not consider the owner's input and contribution affecting the equity elements, and the profit and loss affect the total income, then the division of accounting elements between China and the United States will be completely consistent.