What is the provision for impairment of entrusted loans?

The provision for impairment of entrusted loans refers to the measurement of the principal of entrusted loans and the recoverable amount at the end of the period, and the provision for impairment of entrusted loans with lower recoverable amount is withdrawn. On the balance sheet, the principal and net reserve of entrusted loans are merged into short-term investments or

Accounting treatment of impairment provision for entrusted loans

According to the Accounting System for Enterprises, enterprises entrust funds according to regulations. At the end of the period, the enterprise shall make corresponding provision for impairment according to the method of lower principal of entrusted loan or recoverable amount. In the current period of provision for impairment, the tax law does not recognize it, and the difference occurs at this time. However, the tax law also stipulates that if an enterprise entrusts a financial and insurance enterprise and other countries to allow an enterprise engaged in credit business to borrow or die, or if it cannot be recovered within the time limit, it is allowed to turn back the difference caused by pre-tax provision for impairment as a property loss when the conditions stipulated in the tax law occur. Therefore, the provision for impairment of entrusted loans also exists in timing difference. Accounting treatment is as follows:

1. Provision for impairment of entrusted loans is withdrawn at the end of the period.

Debit of deferred tax = accrued amount in current period × applicable income tax rate.

Debit: deferred tax (deferred tax debit)

Loan: Taxes payable-Income tax payable

2. Reversal of entrusted loan impairment reserve at the end of the period.

Deferred tax credit = write-off in current period

Borrow: Taxes payable-Taxes payable.

Credit: deferred tax (deferred tax credit)

3. Recover the loan and carry forward the accrued impairment reserve for entrusted loans.

Deferred tax transferred back = entrusted loan preparation carried forward × applicable income tax rate

Borrow: Taxes payable-payable

Credit: deferred tax (deferred tax transferred back)

2. What do self-operated loans and entrusted loans mean?

Refers to the loans independently issued by commercial banks with the raised funds. Refers to the loan independently issued by the lender with funds raised by legal means, with the risks borne by the lender and the principal and interest recovered by the lender.

3. What do you mean by entrusted payment?

Entrusted payment refers to a payment method of loan funds, which means that the lender (a legally established banking financial institution) pays the loan funds to the borrower's transaction object according to the borrower's withdrawal application and payment entrustment, so as to reduce the risk of loan misappropriation. Non-commissioned payment is the opposite.

Entrusted payment is a common payment method when conducting transactions. The characteristic of this payment method is that the bank will take into account the actual needs of the borrower, and then directly pay the loan funds to the borrower's transaction object that meets the contractual purpose. At present, the situation of entrusted payment is as follows: the single amount of loan funds exceeds 5% of the total investment of the project or exceeds 5 million yuan.

4. What is entrusted loan?

1. Entrusted loan refers to the loan provided by government departments, enterprises, institutions and individual clients, which is issued, supervised and recovered by the lender (trustee) according to the object, purpose, amount, term and interest rate determined by the client. 2. Entrusted loans refer to loans issued by trust institutions according to the requirements specified by the clients. The source of funds for this loan is a special trust deposit, and the object, quantity and purpose of the loan are decided by the client. Trust institutions are only responsible for the examination and issuance, supervision and use of loans, recovery at maturity and interest collection, and are not responsible for profits and losses. Trust agencies only charge a certain fee according to the contract. 1. Application conditions for entrusted loan: 1. The trustor and the lender shall be enterprises (institutions), other economic organizations, individual industrial and commercial households or natural persons with full civil capacity approved and registered by the administrative department for industry and commerce (or the competent authority); 2. A settlement account has been opened in a commercial bank; The source of entrusted funds must be legal and have independent control; To bid for entrusted loans, you must bear the loan risks alone; 3. Pay taxes according to the relevant requirements of the State Local Taxation Bureau, and cooperate with the trustee to collect and remit taxes; Meet other requirements of commercial banks. 2. Term interest rate of entrusted loan: 1. The term of entrusted loan shall be determined by the client according to the borrower's loan purpose, repayment ability or the specific circumstances of entrusted loan; 2. In entrusted loans, the entrusted loan interest rate involved shall be determined by the entrusting party, but it shall not exceed the highest loan interest rate and floating range stipulated by the People's Bank of China in the same period. 3. Since 2004, the floating range of the loan interest rate of commercial banks has been expanded to (0.9, 1.7), that is, the lower limit of the loan interest rate of commercial banks to customers is the benchmark interest rate multiplied by the lower limit coefficient of 0.9, and the upper limit is the benchmark interest rate multiplied by the upper limit coefficient of 1.7. Financial institutions can determine their own floating interest rates according to the relevant provisions of the People's Bank of China.