The Study On The Comparison Of Accounting And Taxation Processing In The Enterprises' Debt Restructuring

In the market economy,the enterprises always fall into a financial difficulty or financial crisis in the operation because they are unable to repay their debts for its internal management problem or macro economic factor. Admittedly, the enterprises can go bankrupt to solve the difficulties. However, if its financial difficulty is temporary and it can achieve an agreement with its debtor, the enterprise would better have a debt restructuring. Debt restructuring has become an inevitable economic phenomenon in the modern market economy and is of great significance in our country's current economic activity.The promulgation of a series of regulations, such as Accounting Standards for Business Enterprises in 2006 and Implementation Regulations of Enterprises Income Taxation in 2008, provides standard and proofs for the accounting and taxation processing of debt restructuring. However, because of the differences of objects and category between the two processing, the processing ways of solving the same economical item are inevitably different.In Chapter One, the paper gives a basic introduction to the theory of Debt Restructuring. Beginning with the concept of claims and liability, it introduces the definitions, categories, and the new definition and methods of debt restructuring regulated in the present accounting standards. And then, the paper briefly introduces the background and influence of the debt restructuring criterion's revising, and the difference between the present criterion and the original criterion.In Chapter Two, it mainly introduces tax law stipulation related to the debt restructuring, including income tax relative stipulation and other categories of tax stipulations. Because other categories of taxes'processing are not related with the comparison, the paper only studies on the comparison between income tax accounting and taxation processing.Through the comparative analysis of the two proceedings under the present accounting standards and taxation regulations, the Chapter Three points out the main similarities and differences between the accounting and taxation proceedings when the creditor and debtor adopt the debt reconstructing in different circumstances. Firstly, under the form of liquidation of a debt by asset, the accounting processing of the debtor and creditor is mainly the same as the taxation processing and there are only a few differences in disposal procedures. Secondly, under the form of debt transferring to capital, the difference comes mainly from the accounting measurement of the current profit and loss for the debts that has provision of bad debts. Thirdly, under the form of revising other conditions, it has two conditions: no matter whether it has contingent liabilities, the accounting and the taxation processing are the same for the debtor. But for the creditor, the accounting processing is mainly the same as the taxation processing if there is no contingent liabilities. If there are contingent liabilities, the two processing exist difference. And the creditor needs to carry out tax-payment adjustment. Fourthly, under the form of the mixed debt restructuring, the processing uses the above three ways as a reference under certain order.Chapter Four introduces a debt restructuring case to explain the application of the above theoretical analysisIn Chapter Five, the paper further elaborates the influence of this comparison to the enterprise and government. And it also puts forwards some policy suggestions, including the appraisal of the present debt restructuring criterion and the relative income tax, the explanation of the necessity and coordination of its difference and the influence of debt restructuring on both the creditor and debtor. At last, it mentions the influence on the government's related departments and makes some suggestions.By the theoretical comparison and the analysis of the case, this article draws the conclusion. In the present accounting standards and tax law standard, for the debtor, debt restructuring's accountant processing and taxation processing are basically consistent, but there is certain difference in the disposal procedure of the exceptional cases. On this circumstance, the creditor needs to make a simple adjustment. For the creditor, it is also more or less same besides the debt restructuring under the form of revising other conditions. For the creditor, accountant processing is different from the taxation processing in the debt restructuring under the form of revising other conditions, and an adjustment is required. Therefore, this article gives a certain appraisal to the above comparison and points out the necessity and coordination of these differences as well as some influences to the enterprise and government's related departments; finally, it proposes the corresponding improvement and the policy suggestion.To be different with other previous papers on the debt restructuring, this paper elaborates the debt restructuring questions from the theoretical angle, and makes a comparison between the accounting processes and taxation processes. Through the analysis of an actual case, it can give an instruction to the debt restructuring enterprises'actual bookkeeping processing and it has great practical significance in instructing their financial affairs. Meanwhile, this paper also appraises the comparison, and proposes some countermeasures and suggestions, such as strengthening the communication and coordination of the related Control sections, promoting to public the enterprises'information and increasing the disclosure dynamics of the debt restructuring accounting information and so on. It provides a theoretical reference for the revision and consummation of the accounting standards and the tax revenue legal regulation and has great theoretical significance to the accountancy and the tax affairs.