CHAPTER VI EXTERNAL INVESTMENT
Article 23 The external investment refers to those investments in other
enterprises carried out by an enterprise in the forms of cash, kinds and
intangible assets or through buying such marketable securities as stocks
and bonds including both short-term and long-term investments.
Short-term investments refer to the marketable securities that can be
readily shifted into cash and help less than one year as well as other
forms of investment no longer than one year.
Long-term investments refer to the marketable securities that are not
intended to be shifted into cash in a short period and can be held more
than one year as well as other forms of investment longer than one year.
Article 24 For those external investments which are made by enterprises
in the form of physical property or intangible assets, the difference
between the current value recognized by revaluation and the net book
value shall be accounted into the capital reserve.
With regard to those external investment in the form of purchasing
bonds, the differences between the actual payments and the bond's face
value shall be considered as the premiums or discounts of the bonds, and
both of them shall be amortized or be set off after transferring them
into other accounts periodically before maturity.
With regard to those external investments in the form of purchasing
stocks, when the actual payments include announced dividends, difference
of the actual payments after deducting the dividends receivable shall be
considered as the actual value of the external investments.
Article 25 Both profit and dividends deriving from the enterprise's
external investment shall be accounted into investment returns and shall
be subject to the payment of income taxes according to the stipulations
of the State.
The difference between the value of the external investment realized by
the enterprise and the book value of the investment shall be accounted
into the current profit and loss.
CHAPTER VII COST AND EXPENSES
Article 26 All those payments of the enterprise for producing or dealing
in commodities and providing services, including direct wages, direct
materials, purchase price of commodities, and other direct payments,
shall be accounted directly into production and operation costs. Those
indirect expenses for producing or dealing in commodities and providing
services shall be proportionally allocated into production and operation
cost.
Article 27 Selling, administrative and financial expenses incurred by
enterprise shall be directly accounted into the current profit and loss.
The selling expenses include such expenses as transportation expense,
loading and unloading expense, packing expens[1] [2] [3] [4] [5] 下一页
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