Please enable JavaScript.
Coggle requires JavaScript to display documents.
6.1 Account Receivable-Fundamentals (Nontrade receivables (Lease, Deposit…
6.1 Account Receivable-Fundamentals
Trade Receivables
resulting from credit sales to customers in the normal course of business
result in contracts evidenced by sales orders, invoices, or delivery contracts
normal unsecured and noninterest-bearing
unconditional rights to consideration from contrcts with customers
Nontrade receivables
Lease
Deposit to guarantee payment
Advances to shareholders, directors, officers
Subscriptions for the entity's securities
tax refunds
Claims for insurance proceeds or amounts arising from litigation
interest, dividends, rent or royalties accured
Trade Discounts
Gross list price for different buyers, quatities and costs
Net price after the trade discount is the basis for recognition
Trade discounts are solely a means of calculting the sales price
They are not recorded
Financial Presentation
On the face of BS
material receivables should be agregated
separated into current and noncurrent
discount or premium resulting from a present value measurement directly decreases or increases the face amount of a note
from a related party should be separately and fully disclosed
Cash discounts
Cash discounts accelerate cash collection by rewarding customers for early payment
Disclosure should be made of
related party receivables
loss contigencies (应急）
Pledged or assigned receivables
Concentration of credit risk