2. The interest income in the income statement is reflected in the item of "financial expenses" as a negative number. Interest income is a construction project of financial expenses.
3. When the interest income is less than the financial expenses, the financial expenses in the income statement are positive; When the interest income is greater than the financial expenses, it is negative.
4. If it is accounting software. Interest income should be debited to financial expenses in negative or red figures when bookkeeping. Otherwise, the system will generate an error in the income statement.
Expansion: Where is the interest expense reflected in the financial income statement?
The financial expense items in the income statement of financial statements reflect the offset of interest expense and interest income, so it is impossible to directly see the actual amount of loan interest expense. The accounting contents of financial expenses include: general interest income and expenditure, foreign exchange gains and losses, amortization of after-sale repurchase spreads, expenses of financial institutions, contingent income, amortization of unconfirmed financing expenses, settlement and sale of foreign exchange by banks, difference between foreign exchange purchase price and converted exchange rate, cash discount enjoyed, loss of unguaranteed residual value of retained leased assets, etc.
Deduction of loan interest expenses between affiliated enterprises:
The pre-tax deduction principle of loan interest expenses between related parties is as follows:
1. The loan business between affiliated enterprises is conducted according to the principle of independence, and the loan interest expenses between them are deducted before tax.
2. When the actual tax burden of the borrowing enterprise is lower than or equal to the actual tax burden of the domestic loan related party, the interest expenses paid by the borrowing enterprise to the related party can be deducted before tax.
3. The pre-tax deduction of interest expenses between related parties adopts the method of "proportional deduction", that is, the proportion of accepting creditor's rights investment and equity investment of related parties is: the proportion of financial enterprises is 5:1; The ratio of other enterprises is 2: 1. The loan interest expenses that meet the proportion can be deducted before tax, and the loan interest expenses that exceed the proportional limit cannot be deducted before tax. Taxable income must be increased in the current period, and this interest expense cannot be deducted before tax in future years.
4. If an enterprise is engaged in financial business and non-financial business at the same time, it must calculate the interest expenses paid to related parties respectively according to the two business situations. If it cannot be reasonably separated, the interest calculated only according to the ratio of other enterprises (2: 1) can be deducted before tax, and the excess interest cannot be deducted before tax.
It should be noted that related parties include both direct related parties and indirect related parties, which should be considered comprehensively. The financing loan business obtained from indirect related parties includes: (1) The related parties provide loans to enterprises through unrelated third parties. On the surface, the third parties provide loans, but in essence, the related parties of enterprises are operating, which belongs to related party business. (2) The loan of the enterprise is provided by an unrelated third party. However, it should be noted that if the loan business is guaranteed by a related party and bears joint liability, it also belongs to the related party business. (3) Other creditor's rights investments that are indirectly obtained from third parties on the surface but actually involve related parties are also related party businesses.