How To Fill In The "Assets Impairment Provision" Item?

The provision for impairment of assets includes 8 items: 1. Accounts receivable bad debt preparation; 2. Preparation for inventory depreciation; 3. Preparation for short-term investment depreciation; 4. Preparation for long-term investment impairment; 5. Provision for impairment of entrusted loans; 6. Provision for impairment of fixed assets; provision for impairment of intangible assets; and provision for impairment of construction projects.

Among them, the two items of "accounts receivable bad debt preparation" and "inventory depreciation reserve" are strictly stated, which should be "net increase in bad debt preparation" and "net value of net increase in inventory depreciation".

Other projects can be based on the "investment income - short-term investment depreciation reserve", "investment income - long term investment impairment allowance", "investment income - entrusted loan value reduction preparation", "non operating expenditure - fixed assets impairment preparation", "non operating expenditure - intangible assets impairment preparation" and "extra business expenditure - the depreciation of construction projects".

This is an example of "accounts receivable bad debt preparation" as an example.

When the provision for bad debts is prepared, the administrative expenses recorded in the current period are included in the profit statement.

But in fact, there was no cash outflow.

In order to adjust net profit to net cash flow of operating activities under cash system, the provision for bad debts should be added back to net profit.

If the bad debt is sold out in the year, for example, it is 1000 yuan, the situation will be more complicated.

On the one hand, it has nothing to do with profits. On the other hand, the decrease in the "plus: receivables" is also included in the amount of 1000 yuan. If the amount is calculated, the net cash flow will increase by 1000 yuan.

As a matter of fact, the bad debts will not increase the cash and decrease the cash. It can be seen that when calculating the provision for bad debts, we should eliminate the part of the bad debt pfer, which is actually a net increase in the provision for bad debts.