Financial expenses include interest expenses (less interest income), exchange gains and losses and related handling fees, discount interest incurred in discounting commercial bills, cash discounts incurred or received by enterprises, etc.

1, interest expense

Refers to the net amount of interest expenses (except capitalized interest) such as short-term loan interest, long-term loan interest, bill payable interest, bill discount interest, bond payable interest and long-term payable interest on imported equipment, minus interest income from bank deposits.

2. Exchange gains and losses

Exchange gains and losses mainly refer to the difference between the prices bought and sold by banks and the exchange rate adopted for bookkeeping, as well as the foreign currency that closes various foreign exchange accounts every month.

The balance at the end of the period is not in accordance with the exchange rate stipulated at the end of the period, and the difference between the amount of RMB converted for bookkeeping and the amount of RMB originally recorded before, etc. It mainly includes unrealized exchange gains and losses and realized exchange gains and losses.

3. Relevant handling fees

The relevant handling fees mainly refer to the relevant formalities fees that need to be paid for issuing bonds, the handling fees of the issuing bank, and the handling fees for adjusting foreign exchange. However, it does not include the handling fee for issuing shares.

4. Discount of commercial bills

Discounting of commercial bills refers to the bill transfer behavior that the bill holder pays a certain interest to the bank for financing before the bill expires. The discount period shall be from the date of discount to the maturity date of the bill. The discount amount paid is calculated by deducting the interest from the discount date to the maturity date of the bill 1 day; For the acceptor's paper commercial bills in different places, the discount period and the calculation of discount interest should be added with a 3-day transfer date.

5. Cash discount

Cash discount mainly refers to the financial expenses incurred by enterprises in order to quickly withdraw funds, reduce the loss of bad debts, and all the collection time. Generally, cash discount can directly enter the financial expenses in the actual occurrence, while cash discount given by sales can be accounted by debit in the financial expenses. The financial discount actually obtained by the buyer can also be registered in the financial expenses by using the borrower's negative number.