The difference between entrusted loan and short-term bond investment, can entrusted loan be regarded as short-term investment?

First, the difference between entrusted loans and short-term bond investments, can entrusted loans be regarded as short-term investments?

Entrusted loan refers to the loan business in which the principal provides funds from legal sources, and the entrusted bank issues, supervises the use and assists in the recovery according to the loan object, purpose, amount, term and interest rate determined by the principal. Customers include government departments, enterprises, institutions and individuals.

Short-term bond investment is a bond investment with an investment period of less than one year. The purpose of enterprise short-term bond investment is mainly to meet the enterprise's demand for funds, adjust the cash balance and make the cash balance reach a reasonable level. When the enterprise has too much cash balance, it will invest in bonds to reduce the cash balance; On the other hand, when the cash balance is too small, sell the bonds originally invested and recover the cash to increase the cash balance.

If the entrusted loan is within one year, it can be considered as a short-term investment and cannot exceed one year.

2. Is the one-year entrusted loan a long-term investment or a short-term investment?

It is a short-term loan. Short-term loans are generally divided into two grades, those within six months and those from six months to one year. Now the entrusted loan interest within 6 months is 5.58%. The interest for half a year to one year is 6. 12%. Of course, the bank will also increase the loan interest by 20%-30% according to the specific situation.

Because banks have to raise the benchmark interest rate according to your credit status, collateral and repayment, our entrusted loan interest rate generally rises by 20%.

Third, the definition of entrusted financial management?

Entrusted financial management, also known as valet financial management, is a different name for the same business from the perspective of the entrusting party and the management party. Entrusted financial management refers to the behavior of professional managers who accept the entrustment of asset owners to manage assets on their behalf in order to realize the appreciation of entrusted assets or other specific goals. Generally speaking, entrusted financial management in the securities market means that investment banks, as managers, raise and manage entrusted funds with independent accounts and invest in the portfolio of financial instruments such as stocks, funds, bonds and futures in the securities market to realize the appreciation of entrusted funds or other specific purposes.

Fourth, the difference between entrusted loans and short-term bond investment, can entrusted loans be regarded as short-term? ...

There are two kinds of handling opinions:

Entrusted loan refers to the loan provided by the principal, issued, supervised and recovered by the financial enterprise (trustee) according to the loan object, amount, purpose, term and interest rate determined by the principal, and the risk is borne by the principal.

Viewpoint (1) is dominant.

First, the new guidelines for handling entrusted loans.

According to the "Accounting Treatment of the Connection between the Old and New Accounting Standards" issued by the Ministry of Finance, the new standard does not set up the "entrusted loan" subject. During reconciliation, the balance of "entrusted loan-principal and interest" should be transferred to "held-to-maturity investment-investment cost and accrued interest" respectively. If the impairment reserve has been withdrawn, the corresponding amount of impairment reserve will be transferred from the relevant account to the account of "impairment reserve for held-to-maturity investment". This practice needs further discussion.

For the classification of financial assets, there is a prominent highlight in the new standard, which is to reflect the intention of managers. If managers hold financial assets for short-term profit and want to include changes in the fair value of a financial asset in current profits and losses, they are classified as trading financial assets; Financial assets with fixed maturity date and fixed or determinable recovery amount can be classified as held-to-maturity investments; If the manager's holding intention is not clear (neither short-term sale nor maturity), it may be classified as available-for-sale financial assets. Therefore, it cannot be considered that financial assets must be transactional financial assets or available financial assets, because the classification must depend on the intention of the manager.

The main difference between financial assets classified as loans and receivables and financial assets classified as held-to-maturity investments is that the former is not a financial asset quoted in an active market and is not subject to more restrictions on sale or reclassification like held-to-maturity investments. If there is no quotation for debt instrument investment in an active market, enterprises cannot classify it as held-to-maturity investment.

According to the appendix subjects and accounting treatment of the new Accounting Standards for Enterprises-Application Guide, it is stipulated in the accounting description of the subject "1303 loan" that the subject of "1303 loan" should be changed to the subject of "1303 entrusted loan" for the money entrusted by enterprises to banks or other financial institutions to other units. This shows that the entrusted loans of enterprises should be accounted for separately, rather than transferred to the subject of "held-to-maturity investment".

1. Questions about entrusted loan subjects:

There is a "1303 loan" subject in the application guide of the new accounting standards for enterprises, which accounts for all kinds of customer loans issued by enterprises (banks) according to regulations; When an enterprise entrusts banks and other financial institutions to lend to other units, it can change the subject to "1303 entrusted loan" to account for the entrusted loan business of non-financial enterprises. In other words, entrusted loan accounts can be set up.

2. Entrusted loans are listed in the statement:

In view of the fact that entrusted loans are not listed separately in general accounting statements, and the new accounting standards application guidelines (draft for comments) classify entrusted loans as held-to-maturity investments, it is suggested that held-to-maturity investments be listed in accounting statements.

3. Entrusted loan accounting

Entrusted loan consists of principal, accrued interest and impairment reserve details.

Accrued interest time

Borrow: entrusted loan-accrued interest

Loan: investment income

Needless to say, the accounting entries of loan lending, interest collection, principal recovery and impairment.

4. Interest income shall be subject to 5% business tax.

Borrow: investment income

Loan: Taxes payable-business tax

5. In addition, if the actual loan amount and the actual interest rate are different from the contract amount and interest rate, the calculation of amortized cost and interest adjustment will be more troublesome, so it is suggested to be consistent in practice, and such problems will not occur.

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Viewpoint (2)