How Should The Labor Income Be Accounted For?

For a service that can be completed at one time or completed and completed during the same accounting period, the income should be recognized at the time when the paction is completed (the key point). The amount affirming is usually the contract or agreement price received or receivable from the receiving labor party, and the confirmation principle can refer to the confirmation principle of sales commodity income.

If the start and completion of the labor service belong to different accounting periods, and if the result of the labor paction provided by the enterprise on the balance sheet date can not be reliably estimated, that is, it can not satisfy the four conditions that the labor paction result can be reliably measured at the same time.

At this point, the enterprise should correctly predict whether the labor cost that has occurred has been compensated.

(1) where the labor cost that has occurred is expected to be compensated, the labor income shall be recognized according to the amount of labor cost that has occurred, and the labor cost will be converted at the same amount.

(in this case, revenue and cost are equal and no profit is generated).

(2) the labor cost that has occurred is expected to be partially compensated, and the income should be recognized according to the amount of labor cost that can be compensated, and the labor cost will be converted according to the labor cost that has occurred.

(under these circumstances, income is less than cost and losses).

(3) if the labor cost that has occurred is not expected to be compensated, the labor cost that has already occurred shall be included in the profits and losses of the current period, and the income from the provision of labor services shall not be recognized (2011 judgement).

(in those cases, only carry over costs and generate losses)

For one time, the service can be completed:

When the service is completed, the income of the labor service is recognized.

Borrower: bank deposits (accounts receivable)

Loan: main business income

At the same time, according to the provision of labor services

:

Borrowing: main business cost

Loan: bank deposit

For services that have lasted for a certain period of time but have been completed and completed during the same accounting period:

For related expenses incurred in the provision of labour services:

Borrowing: labor cost (cost of collection)

Loan: bank deposit (payable for staff and salaries, raw materials)

When the service is completed, the income of the labor service is recognized.

Borrower: bank deposits (accounts receivable)

Loan: main business income

At the same time, the costs associated with carrying forward related labor are:

Borrowing: main business cost

Loan: labor cost

The income earned by the enterprise in providing labor services and the related costs of the pfer, if it belongs to the main business of the enterprise, should be accounted for through the main business income and the main business cost. If it belongs to other business activities other than the main business, it should be accounted for through other business income and other business costs.

The expenses of enterprises' external labor services are usually collected through the "labor cost" subject. When the cost is considered, the "labor cost" subject will be pferred to the "main business cost" or "other business costs" subject.

(1) the results of providing labor services can be reliably estimated.

If the start and completion of the labor service belong to different accounting periods, and the enterprises can reliably estimate the results of the labor paction on the balance sheet date, the percentage of completion method should be used to confirm the provision of labor income.

At the same time, the following conditions are met

The results can be reliably estimated.

(1) the amount of income can be measured reliably;

(2) the relevant economic interests are likely to flow into enterprises.

(3) the completion schedule of pactions can be determined reliably.

According to the characteristics of providing labor services, enterprises can choose the following methods to determine the completion progress of providing labor services pactions:

(1) measurements completed.

(2) the proportion of labor services that has been provided should be the total number of labor services (quantity, such as the number of hours). This method mainly determines the completion level of the labor service paction based on the amount of labor.

(3) the ratio of the cost that has occurred to the estimated total cost (the amount). This method mainly determines the completion level of the labor service paction based on the cost standard.

(4) the costs that have occurred and will occur in pactions can be measured reliably.

(two) confirm the provision by the percentage of completion method.

Accounting treatment

The percentage completion method refers to the method of confirming the income and expenses according to the completion schedule of the labor service paction.

By adopting the percentage of completion, the enterprise shall, on the balance sheet date, multiply the total amount of the total labor service income by the completion schedule, deduct the amount of the income received from the previous accounting period, and confirm the provision of labor income in the current period. At the same time, according to the total estimated cost of the labor service multiplied by the completion schedule, the amount of the labor cost after the accumulated period of the previous accounting period will be deducted, and the labor cost will be pferred to the current period.

The formula is as follows:

The income recognized during the current period is the total income of the labor service * the completion date of the labor service at the end of this period - the revenue that has been recognised during the previous period.

The cost confirmed during this period is the total cost of labor (the cost that has happened and the estimated cost to be generated) * the completion of the labor service at the end of this period - the confirmed cost during the previous period.

The total labor income in the above formula is usually determined in accordance with the contract or agreement price received or received by the receiving party.

When the total income and total cost of labor can be measured reliably, the key is to determine the completion schedule of the labor service.

Enterprises should choose the method to determine the progress of labor service according to the characteristics of the labor provided.