1. Basic concepts

Financial instruments refer to contracts that form the financial assets of an enterprise and form the financial liabilities or equity instruments of other units. Financial instruments include financial assets, financial liabilities and equity instruments. Financial assets refer to the following assets of an enterprise: (1) cash; (2) equity instruments held by other units; (3) contractual rights to receive cash or other financial assets from other units; (4) potential favorable conditions Contractual rights to exchange financial assets or financial liabilities with other units; (5) Contractual rights to non-derivative instruments that must or can be settled with the enterprise's own equity instruments in the future, and the enterprise will receive a non-fixed amount of its own equity according to the contract Tools; (6) Contractual rights to derivative instruments that must or can be settled with the enterprise's own equity instruments in the future, except for derivative contract rights in which the enterprise exchanges a fixed amount of cash or other financial assets for a fixed number of its own equity instruments. Among them, the enterprise's own equity instruments do not include contracts that themselves are to collect or pay the enterprise's own equity instruments in the future.

Financial liabilities refer to the following liabilities of an enterprise: (1) Contractual obligations to deliver cash or other financial assets to other units; (2) Exchange of financial assets or financial assets with other units under potentially adverse conditions Contractual obligations of liabilities; (3) Contractual obligations of non-derivative instruments that must be settled or can be settled with the enterprise's own equity instruments in the future, and the enterprise will deliver a non-fixed number of its own equity instruments according to the contract; (4) Contractual obligations of the enterprise that must be settled with or can be used in the future Contractual obligations of derivatives settled with its own equity instruments, except for derivative contract obligations in which the enterprise exchanges a fixed amount of cash or other financial assets for a fixed number of its own equity instruments. Among them, the enterprise's own equity instruments do not include contracts that themselves are to collect or pay the enterprise's own equity instruments in the future.

An equity instrument refers to a contract that can prove ownership of the remaining equity in the assets of an enterprise after deducting all liabilities.

Derivatives refer to financial instruments or other contracts covered by this Financial Instrument Recognition and Measurement Standard that have the following characteristics: (1) Their value changes with specific interest rates, financial instrument prices, commodity prices, exchange rates, Changes due to changes in price index, rate index, credit rating, credit index or other similar variables. If the variable is a non-financial variable, the variable has no specific relationship with any party to the contract; (2) No initial net investment is required, or Requires a small initial net investment compared to other types of contracts that respond similarly to changes in market conditions; (3) Settlement at a future date. Derivatives include forward contracts, futures contracts, swaps and options, and instruments that have the characteristics of one or more of forward contracts, futures contracts, swaps and options.

II. Accounting classification of financial assets or financial liabilities measured at fair value and changes included in current profits and losses

In terms of accounting treatment, measured at fair value and changes included in current profits and losses Financial assets or financial liabilities in current profits and losses can be further divided into trading financial assets or financial liabilities and financial assets or financial liabilities directly designated as measured at fair value with changes included in current profits and losses.

(1) Trading financial assets or financial liabilities.

Financial assets or financial liabilities that meet one of the following conditions should be classified as trading financial assets or financial liabilities: First, the purpose of acquiring the financial assets or assuming the financial liabilities is mainly for the near term. Sale, repurchase or redemption. For example, companies purchase stocks, bonds and funds from the secondary market with the purpose of earning price differences. Second, it is part of a portfolio of identifiable financial instruments that are managed centrally, and there is objective evidence that the company has recently used short-term profit-making methods to manage the portfolio. Among them, "financial instrument portfolio" refers to a financial asset portfolio or a financial liability portfolio. Third, it is a derivative instrument. However, derivatives that are designated as effective hedging instruments, derivatives that are financial guarantee contracts, and investments in equity instruments that are not quoted in an active market and whose fair value cannot be reliably measured must be settled by delivering the equity instrument. Except for derivatives. Among them, a financial guarantee contract refers to a contract in which the guarantor and the creditor agree that when the debtor fails to perform the debt, the guarantor will perform the debt or assume liability as agreed.

(2) Directly designated as financial assets or financial liabilities measured at fair value and whose changes are included in current profits and losses.

Enterprises cannot arbitrarily designate a financial asset or financial liability directly as a financial asset or financial liability measured at fair value, with changes included in current profits and losses. Only when the conditions specified in the recognition and measurement standards for financial instruments are met, an enterprise can directly designate a financial instrument as a financial asset or financial liability measured at fair value and whose changes are included in current profits and losses.

For a hybrid instrument that includes one or more embedded derivatives, an enterprise may directly designate it as measured at fair value through profit or loss if neither of the following conditions applies: Financial assets or financial liabilities: Embedded derivatives do not significantly change the cash flows of hybrid instruments; derivatives embedded in similar hybrid instruments should obviously not be separated from related hybrid instruments, such as those embedded in customer loans that allow borrowers to The right to prepay an amount approximately equal to the amortized cost of the loan.

In addition, according to the standards for the recognition and measurement of financial instruments, an embedded derivative instrument should be separated from a hybrid instrument, but if it cannot be measured separately at the time of separation or on subsequent balance sheet dates, it should be Directly designate the entire hybrid instrument as a financial asset or financial liability at fair value through profit or loss. For situations other than the above hybrid instruments, a financial asset or financial liability can be directly designated as a financial asset or financial liability measured at fair value and changes included in current profits and losses only when more relevant accounting information can be generated. If one of the following conditions is met, it means that direct designation can produce more relevant accounting information:

First, the designation can eliminate or significantly reduce the differences caused by the different measurement bases of the financial assets or financial liabilities. Inconsistencies in recognition and measurement of relevant gains or losses. The purpose of establishing this condition is to eliminate possible accounting mismatches by directly specifying it as measured at fair value and including its changes in current profits and losses. For example, according to the standards for the recognition and measurement of financial instruments, some financial assets can be designated or classified as available-for-sale, so that changes in their fair value are included in owners' equity, but financial liabilities directly related to them are classified as amortized. Financial liabilities are subsequently measured at cost, resulting in "accounting mismatch". However, if the above financial assets and financial liabilities are directly designated as measured at fair value and their changes are included in the current profit and loss category, then this accounting mismatch can be eliminated.

Second, the enterprise's formal written documents on risk management or investment strategies have stated that the financial asset portfolio, the financial liability portfolio, or the financial asset and financial liability portfolio are managed on the basis of fair value. , evaluate and report to key management personnel. This condition focuses on the way an enterprise manages and evaluates its performance on a day-to-day basis rather than on the nature of the components of a portfolio of financial instruments. For example, venture capital institutions, securities investment funds or similar accounting entities, the main purpose of their business activities is to obtain returns from changes in the fair value of investment instruments, and they have clearly stated this in formal written documents on risk management or investment strategies. .

3. Tax treatment of financial assets or financial liabilities measured at fair value through profit or loss for the current period

For trading financial assets or financial liabilities, they are directly designated as fair value. For financial assets or financial liabilities whose value is measured and whose changes are included in current profits and losses, the tax treatment is different from the accounting treatment.

In terms of tax treatment, according to Article 6 of the Enterprise Income Tax Law, the income obtained by an enterprise from various sources in monetary and non-monetary forms shall be the total income. Including income from transfer of property. Article 16 of the "Implementation Regulations" stipulates that the income from transfer of property as mentioned in Item 3 of Article 6 of the Enterprise Income Tax Law refers to the transfer of fixed assets, biological assets, intangible assets, equity, debt and other properties by the enterprise. income obtained. An enterprise's trading financial assets or financial liabilities, or financial assets or financial liabilities that are directly designated as measured at fair value and whose changes are included in current profits and losses, before the actual transaction occurs, are measured at fair value, but they are income that has not been actually obtained. , the enterprise does not have the ability to pay taxes at this time. Generally speaking, it should not be included in the total income, and tax adjustments should be made to the accounting treatment.

According to Article 8 of the Enterprise Income Tax Law, actual and reasonable expenditures incurred by an enterprise related to obtaining income, including costs, expenses, taxes, losses and other expenditures, may be used in calculating taxable income. The amount will be deducted at the time of payment. Article 14 stipulates that during the period when an enterprise invests overseas, the cost of investment assets shall not be deducted when calculating taxable income. Article 71 of the "Implementation Regulations" stipulates that the investment assets referred to in Article 14 of the Enterprise Income Tax Law refer to the assets formed by enterprises' external equity investments and debt investments. When an enterprise transfers or disposes of investment assets, the cost of the investment assets is allowed to be deducted. If an enterprise's trading financial assets or financial liabilities, or financial assets or financial liabilities that are directly designated as measured at fair value and whose changes are included in the current profit and loss, are measured at fair value and their changes are included in the current profit and loss before the actual transaction occurs, Generally no pre-tax deductions are allowed and tax adjustments should be made.