Research On The Application Of New Accounting And Tax Regulations On Perpetual Debt In Real Estate Enterprises

With the continuous development of my country’s financial market,many innovative financial instruments have appeared,and the continuous development of perpetual bonds in recent years is one of them.In order to solve the problems of high asset-liability ratio and difficult financing,many real estate companies began to choose this method of financing.There is no clear maturity date for perpetual bonds,which are both "share" and "debt",which is very difficult for the accounting confirmation and tax treatment of perpetual bonds.In addition,in order to regulate the development of perpetual bonds,the Ministry of Finance issued the "Regulations on Accounting Treatment of Perpetual Bonds" in January 2019,and in April 2019,the "Announcement on Corporate Income Tax Policy on Perpetual Bonds" was issued.With the emergence of new regulations,how to conduct accounting confirmation and tax treatment of perpetual bonds of real estate enterprises in practice has become a problem that needs to be discussed.Therefore,the research issues in this article are focused on the following two aspects:(1)After the release of the new perpetual debt regulations,how do real estate companies combine the new regulations for accounting confirmation and tax treatment,and what problems exist in the application of the new regulations;(2)new perpetual debt What follow-up impact will the implementation of the regulations bring to real estate companies,and how will real estate companies respond to the new regulations on perpetual debt.The main research contents of this article are as follows:(1)Statistics on the issuance of perpetual bonds in China’s real estate companies,and analysis of the development status of perpetual bonds in real estate companies;(2)Combining the actual cases of the issue of perpetual bonds in real estate companies in China Conduct research on accounting confirmation and tax treatment,and analyze how the case company Beichen Industrial should conduct accounting confirmation and tax treatment of perpetual bonds according to the latest regulations on perpetual bonds;(3)Study the problems and subsequent impact of the application of the new regulations,It also puts forward suggestions on the current treatment of perpetual bonds and how real estate companies can better respond to the new regulations on taxation of perpetual bonds.The findings in this article mainly include the following:(1)The new regulations guide the current difficulties and difficulties in the judgment of perpetual bonds,refine the relevant regulations,and regulate the perpetual bond market,but enterprises still have practical applications There are many problems;(2)There is a certain operating space for the determination of the perpetual debt attribute.Due to the strong willingness of the issuing company to include perpetual debt into equity instruments,and the new regulations have certain ambiguities,companies may set up Stronger “share-based” issuance terms;(3)The new regulations have a certain impact on the issuer’s financial situation,issuance behavior and terms design,but the current impact is not significant.The practice of perpetual debt terms design and issuance scale There has not been a big change due to the release of the new regulations,which is also related to the weaker implementation of the new regulations.The innovation of this article is mainly reflected in:(1)There are few relevant studies after the new regulations on accounting and tax treatment of perpetual bonds are published.This article analyzes the actual cases,combines theory and practice,and finds new perpetual bonds in the process Problems and vague areas in the application of regulations;(2)A more comprehensive review of the issuance of perpetual bonds in China’s real estate industry,and statistics on the design of the terms of new issuance of perpetual bonds by real estate companies after the issuance of new regulations;(3)The stricter implementation of regulations will lead to the assumption that perpetual bonds are classified as financial liabilities and analyze the possible subsequent impact.