Industrial added value

Calculationprinciple

Startingfromtheconceptofindustrialvalue-added,thecalculationofindustrialvalue-addedshouldfollowthefollowingthreeprinciples:

Theprincipleofproductioninthisperiod

Thecalculationofindustrialaddedvaluemustbetheindustrialproductionresultoftheindustrialenterpriseduringthereportingperiod.Onlyafterenteringtheindustrialproductionprocessofanindustrialenterpriseduringthereportingperiod,theproductsandservicescreatedthroughindustrialproductionactivitiescanbeaccountedforindustrialincrease.Theindustrialproductionresultsduringthereportingperiod;conversely,aslongastheproductsareproducedduringthereportingperiod,whethertheyaresoldornot,theyshouldbeincludedintheproductionresultsduringthereportingperiod.

Principlesoffinalresults

Thefinalresultsoftheproductionactivitiesofindustrialenterprisesarereflectedintheproductsproduced,sold,andProductsandservicesavailableforsaleandself-producedandself-usedonotincludeproductsandservicesusedintheproductionprocess;fromtheperspectiveofvalueform,theprocessofproductproductionisalsoaprocessofvaluetransfer,andtheproductsconsumedintheproductionprocess(Intermediateinput)valueistransferredtothevalueofthenewproductalongwiththeproductionprocess.Inordertoavoiddoublecountingofproductvalue,thetransfervalueofintermediateinputsmustbedeductedfromthetotalindustrialoutputvalue.Therefore,itisnecessarytomaintaintheconsistencybetweenthetotalindustrialoutputvalueandthecalculatedpriceofindustrialintermediateinputandtherangeofindicatorcalibertoavoiddeviationsinthecalculationresultsofindustrialaddedvalue.

Principleofmarketprice

Currently,thecalculationpriceusedinthecalculationofindustrialaddedvalueinmycountryistheproducer’sprice,whichisestimatedattheproducer’spriceTheamountofoutputminustheintermediateconsumptionestimatedatthebuyer’sprice.

Forindustrialproducts,theproducerpriceistheex-factoryprice,whichincludestheproducttaxorsubsidiespaidwhentheproductissoldorused,butdoesnotincludethevalue-addedtaxlistedontheinvoiceandseparateinvoices.Transportationcostsandcommercialcosts.

Thepurchaser'spriceisthevaluepaidbythepurchaserforthepurchaseofaunitofgoodsorservices.Itincludesthetransportationandcommercialexpensesincurredinpickingupthegoodsatthespecifiedtimeandplace,anddoesnotincludedeductiblevalue-addedtax.

Theproducerpriceandthebuyerpriceareboththetransactionpricerecognizedbythebuyerandsellerinthemarket,thatis,themarketprice.Inordertomaintaintheconsistencyofthecalculationcaliberofindustrialaddedvalue,thetotalindustrialoutputvalueandindustrialintermediateinputareallcalculatedatmarketprices.Thetotalindustrialoutputvalueiscalculatedattheproducer'sprice,andtheindustrialintermediateinputiscalculatedatthepurchaser'sprice.

Theestablishmentofaddedvaluestatisticsbyindustrialenterprisescanreflecttheinput,outputandeconomicbenefitsofindustrialenterprises,provideabasisforimprovingtheproductionandoperationofindustrialenterprises,andpromotethecoordinationofindustrialenterpriseaccountingandstatisticalaccounting.

Calculationmethod

Therearetwocalculationmethodsforindustrialvalue-added,namelytheproductionmethodandtheincomemethod(alsoknownasthefactordistributionmethod).

Productionmethod

Productionmethodreferstothepointofviewofthevalueformationofproductsandlaborservicesintheindustrialproductionprocess,eliminatingthevalueofintermediateproductsinvestedintheproductionprocess,therebyobtainingaddedvalueMethods.Thecalculationformulais:

Industrialaddedvalue=Totalindustrialoutput-Industrialintermediateinput

Intheactualcalculationofindustrialaddedvalue,thetotalindustrialoutputisdirectlyusedasthetotalindustrialoutputvalue.(Currentprice,newregulations)instead.Thecalculatedpriceofthisindicatorandthecalculatedpriceofindustrialintermediateinputsareconsistentwiththeprovisionsofthenewtaxsystem,andarecalculatedatpricesexcludingvalue-addedtax.However,value-addedtaxispartoftheaddedvaluecreatedbytheenterpriseandbelongstothecategoryofaddedvalue.Inordertoensuretheintegrityoftheelementsofindustrialaddedvalue,whencalculatingindustrialaddedvalue,thecurrentvalue-addedtaxpayableshouldbeincludedintheindustrialaddedvalue.Therefore,theactualcalculationformulaoftheindustrialaddedvaluecalculatedaccordingtotheproductionmethodshouldbe:

Industrialaddedvalue=totalindustrialoutputvalue(currentprice,newregulations)-industrialintermediateinput+currentvalue-addedtaxpayable

Incomemethod

Thisisamethodofaccountingforthefinalresultsofindustrialproductionactivitiesfromtheperspectiveoftheinitialdistributionoftheoriginalincomecreatedintheindustrialproductionprocess.Thecalculationformulais:

Industrialvalue-added=depreciationoffixedassets+laborcompensation+netproductiontax+operatingsurplus

Correspondingindicators

Grossindustrialoutputvalue

Includesthevalueofthefinishedproductsproducedinthecurrentperiod,theincomefromexternalprocessingfees,andthevalueofthedifferencebetweentheendandthebeginningoftheself-madesemi-finishedproducts.

Industrialintermediateinput

Industrialintermediateinputreferstotheone-timeconsumptionofpurchasedrawmaterials,fuels,powerandotherphysicalproductsandServicefeespaidexternally.Servicecostsincludeservicefeespaidtomaterialproductionsectors(industry,agriculture,wholesaleandretailtrade,construction,transportation,postandtelecommunications)andnon-materialproductionsectors(insurance,finance,cultureandeducation,scientificresearch,medicalandhealth,administrativeManagement,etc.)servicefees.

①Principlestofollow

First,thevalueofproductsandservicesthatmustbepurchasedfromoutsideandincludedinthetotalindustrialoutputvaluedoesnotincludeproductionThevalueofwastematerialsandself-madeproductsrecoveredintheprocess;

Thesecondisthevalueofproductsandservicesthatmustbeputintoproductioninthecurrentperiodandconsumedatonetime,excludingthevalueoffixedassetstransfer;

Third,thecalculationcaliberoftheindustrialintermediateinputmustbeconsistentwiththecalculationcaliberofthetotalindustrialoutputvalue,thatis,thevalueoftheproductsandservicesincludedintheindustrialintermediateinputmustbethevaluethathasbeenincludedinthetotalindustrialoutputvalue.

②Classification

Industrialintermediateinputcanbedividedintotwoparts,intermediatematerialinputandintermediatelaborinputaccordingtotheobjectspaidbytheenterprise.

a.Intermediatematerialinput:referstothevalueofvariousmaterialproductspurchasedbyindustrialenterprisesduringtheproductionprocessandthelaborcostspaidtothematerialproductiondepartment,includingrawmaterialspurchasedandconsumedinthecurrentperiod,Fuel,power,andtransportationfees,postandtelecommunicationsfees,processingfees,repairfees,storagefees,etc.paidtoforeignentities.

b.Intermediatelaborinput:referstothevariousservicefeespaidbyindustrialenterprisestothenon-materialproductiondepartmentintheproductionandoperationmanagement.Thesecostsconstitutepartoftheincomeofthenon-materialproductiondepartment,includinginterestexpenses,advertisingExpenses,insuranceexpenses,employeeeducationexpenses,travelexpenses,etc.

Accordingtothespecificcontent,industrialintermediateinputsaredividedintofivecategories:directmaterials,intermediateinputsinmanufacturingcosts,intermediateinputsinmanagementcosts,intermediateinputsinsalesexpenses,andinterestexpenses.

a.Directmaterials:includingrawmaterials,auxiliarymaterials,spareparts,purchasedsemi-finishedproducts,fuel,power,packagingandotherdirectmaterialsactuallyconsumedintheproductionandoperationoftheenterprise.Thedatacanbetakendirectlyfromthe"directmaterials"subjectoftheaccountingproductcosting.Ifthecompanydoesnotsetthecostaccountingaccountaccordingto"directmaterials,directlabor,andmanufacturingexpenses",itcancollecttheitemsthatbelongtothedirectmaterialconsumptionfromthesupplier'sincurredamountoftheaccount"productioncost".

b.Intermediateinputsinmanufacturingcosts:includingrepaircosts,materialconsumption,low-valueconsumables,heatingcosts,waterandelectricitycosts,officecosts,transportationcosts,testandinspectioncosts,laborprotectioncosts,leasesExpenses,travelexpenses,insurancepremiums,etc.Youcansearchandcalculatefromtheaccounting"manufacturingexpense"subject,oryoucanusethe"totalmanufacturingexpense"tosubtractitemsthatbelongtotheindustrialaddedvalue,thatis,wages,employeebenefits,anddepreciationtocalculatetheintermediateinputvalue.

c.Intermediateinputsinadministrativeexpenses:includingofficeexpenses,transportationexpenses,repairexpenses,materialconsumption,deferredexpenseamortization,low-valueconsumables,greeningexpenses,technologytransferexpenses,Amortizationofintangibleassets,landlosscompensationfees,pollutiondischargefees,unionfunds,propertyinsurancefees,employeeeducationexpenses,etc.Itcanbefoundandcalculatedfromthe"AdministrativeExpenses"subjectofaccounting,or"TotalofAdministrativeExpenses"canbeusedtosubtractitemsbelongingtoindustrialaddedvalue,namelywages,benefitwages(referringtonewbenefitwagesdrawnbyenterpriseslinkedtoworkefficiencyaccordingtoregulations),employeesWelfarefees,laborinsurancepremiums,propertyinsurancepremiums,unemployedinsurancepremiums,depreciationfees,taxes(propertytax,vehicleandvesselusetax,landusetax,stampduty),mineralresourcecompensationfees,andvariousprescribedfeessubmittedtothestateandlocalauthoritiesThemethodiscalculatedbackwards.

d.Intermediateinputsinsalescosts:includingtransportationcosts,packagingcosts,officecosts,repaircosts,materialconsumption,amortizationoflow-valueconsumables,rentalfees,exhibitionfees,insurancefees,andadvertisingExpenses,travelexpenses,etc.Itcanbefoundandcalculatedfromtheaccount"ProductSalesExpenses",oritcanbeobtainedbycalculatingthe"TotalProductSalesExpenses"minustheitemsthatbelongtotheindustrialaddedvalue,thatis,wages,employeebenefits,anddepreciationexpenses.

e.Interestexpense:referstothenetinterestexpense(incomefrominterestreduction)incurredduringtheproductionandoperationoftheenterprise.Itcanbecalculatedbasedontheanalysisandcalculationoftheincurredamountoftheaccounting"financialexpenses"subject.

③Specificcalculationmethod

a.Positivealgorithm:adduptheintermediateconsumptionpartsofmanufacturingexpenses,managementexpenses,andsalesexpensesrespectively(inthemiddleMaterialconsumptioniscalculatedatpricesexcludingVAT),plusdirectmaterialsandinteresttogetthesumofindustrialintermediateinputs.

b.Invertedcalculation:thatis,thetotalofmanufacturingexpenses,managementexpenses,andsalesexpensesareusedtosubtractthevalue-addeditemsofthethreeexpenses,suchaswages,welfareexpenses,etc.,tocalculatethethreeexpensesTheintermediateconsumption,plusthedirectmaterialandinterestexpenses,givesthetotalindustrialintermediateinput.Intheactualoperationprocess,itisrelativelysimpleandeasytousetheinvertedalgorithmtocalculate.

Thevalue-addedtaxpayableinthecurrentperiod

Thevalue-addedtaxpayableinthecurrentperiodreferstothevalue-addedtaxpayablebyindustrialenterprisesduringthereportingperiod.Thecalculationformulais:

Thevalue-addedtaxpayablethisyear=outputtax+exporttaxrebate+inputtaxtransfer-out-inputtax-taxreductionandexemption-exporttaxcreditfordomesticsales+taxpayableatthebeginningoftheyearDeductions-undeductedattheendoftheyear

1)Outputtax:referstotheamountofvalue-addedtaxthatanenterpriseshouldchargeforsellinggoodsorprovidingtaxableservicesduringthereportingperiod.

2)Exporttaxrebate:reflectthegoodsthattheenterpriseappliestozerotaxrate,aftergoingthroughthecustomsdeclarationandexportformalitieswiththecustoms,withtheexportdeclarationformandotherrelevantdocuments,declaretothetaxauthorityfortheexporttaxrebateandreceivethetaxrefund.

3)Theamountofinputtaxtransferredout:itreflectstheinputthatmustbetransferredoutaccordingtotheregulationsandshouldnotbedeductedfromtheoutputtaxduetoabnormallossesincurredbythecompany’spurchaseofgoods,finishedproducts,etc.andotherreasonstax.

4)Inputtax:referstotheamountofvalue-addedtaxthatanenterprisehaspaidforpurchasinggoodsorreceivingtaxableservicesduringthereportingperiodandisallowedtobedeductedfromtheoutputtax.

5)Taxdeductions:reflectthevalue-addedtaxdeductionsorexemptionsthatcompanieshavedirectlydeductedandexemptedinaccordancewithnationalregulationsduringthereportingperiod.

6)Exporttaxdeductionfordomesticsalesofproducts:Reflectsthattheinputtaxofexportgoodscalculatedatthetaxrebaterateprescribedbythestateduringthereportingperioddeductsthetaxpayableofdomesticproducts.

7)Theundeductedamountatthebeginningoftheyear(end):referstowhentheinputtaxamountisgreaterthantheoutputtaxamount,theundeductedamountwillappear,andtheundeductedamountatthebeginning(end)mustbelessthanorequaltozero.

Theitemsintheabove-mentionedvalue-addedtaxcalculationformulacanallbeobtainedfromtherelevantitemsinthe"scheduleofreimbursablesumstobesubmitted"oftheaccounting.

Small-scaletaxpayersdonotseparateoutputtaxandinputtax.Thevalue-addedtaxpayableinthecurrentperiodisdirectlycalculatedbymultiplyingthesalesamountbythetaxrate(6%).

Forenterpriseswithexporttaxrebates,iftheexporttaxrebateiscross-yearly,itshouldbeadjustedwhencalculatingtheexporttaxrebate.Thecalculationformulaisbasedontheexporttaxrebateduethisyear.Thecalculationformulafortheadjustedvalue-addedtaxis:

Thevalue-addedtaxpayablethisyear=theoutputtaxoftheyear×(totaloutputvalueatcurrentprice/productsalesincome)+exporttaxrebate+thenumberofinputtaxtransfers-theinputtaxoftheyear×(totalconsumptionvalueofrawmaterials/Totalpurchasevalueofrawmaterials-taxdeduction-exportdeductionfordomesticproducttaxpayable+undeductedamountatthebeginningoftheyear-undeductedamountattheendoftheyear"0"processing.

Fixedassetdepreciation

Itisthevalueofthefixedassetthatistransferredtotheproductcostthroughthegradualloss(includingtangibleandintangibleloss)duringtheuseprocess,Thatis,thevalueextractedtocompensateforthefixedassetsusedinproduction.Thedepreciationoffixedassetsconsistsoftwoparts,oneisthebasicdepreciationdrawnataprescribedrate;theotheristorestorethepartofthefixedassetthathasbeenlostduringuseValue-generatedoverhaulcosts.Thebasicdepreciationpartinthisitemcanbeobtaineddirectlyfromthe"depreciationofthecurrentyear"itemofthe"financialposition"tableintheindustrialstatisticalreport,oraccordingtotheaccounting"statementofchangesinfinancialposition"(annualreport)"Fixedassetsdepreciation"item"Amount"column;duetothedifficultyofobtainingdataforoverhaulcosts,thispartofthecostmaynotbecalculatedtemporarily.

Laborcompensation

referstolaborersVariouscraftsmen’sremunerationsfromproductionunitsforengaginginproductionactivities.Workers’remunerationhasthreebasicforms:

Thefirstiscurrencywages.Theemployerdirectlypaysvariouswagesandbonusestolaborersincurrency.,Allowances,subsidies,etc.;

Thesecondisin-kindremuneration,thatis,thevariousgoodsandservicesprovidedbytheemployertolaborersatfreeorbelowcost;

ThethirdisthesocietyInsurancereferstotheunemployment,pension,personal,medical,familypropertyandotherinsurancepaymentsthattheemployerdirectlypaystothegovernmentandinsurancedepartmentsforemployees.

Thisitemcanbeobtainedbyanalysisandinductionofstatisticsoraccountingdata.MainlyThereare:

Salary

Accordingtothe"mainbusinesspayablewages"iteminthe"financialstatus"tableintheindustrialstatisticalreport,itcanalsobeobtainedfromtheaccount"payablewages"subjectinthebookPeriodicallytransferredtothe"productioncost","manufacturingcost","managementcost","productsalescost"subjectpayablewagecreditamountincurredbysummarizingandobtaining.

Welfarefee

AccordingtoThe"MainBusinessWelfarePayable"inthe"FinancialStatus"tableintheindustrialstatisticalreportcanbedirectlyobtained,oritcanbeobtainedfrom"productioncost","manufacturingexpense",and"managementexpense"fromthecreditincurredintheaccount"WelfarePayable"subject",thecalculationofthewelfarefeedrawninthesubjectof"ProductSalesExpenses".Thecurrentaccountingsystemstipulatesthatthewelfarefeeisdrawnat14%ofthetotalsalary.Ifthecompanydoesnotprovideenoughorexceeds14%,itwillbefilledinaccordingtotheactualnumber.

GuaranteeInsurancepremiums

Accordingtothe"LaborandUnemploymentInsurance"iteminthe"FinancialStatus"tableintheindustrialstatisticalreport,itcanalsobeobtainedaccordingtothe"ManagementExpenses"subjectofaccountingorthelaborinthe"ManagementExpensesSchedule".Insurancepremiums,unemployedinsurancepremiumsandotheritemsarecollectedinasummary.Undernormalcircumstances,thesetwoinsurancesaredrawnat25%ofthetotalwages.Ifthecompanydoesnotprovideenoughorexceeds25%,itwillbereportedaccordingtotheactualamount.

Netproductiontax

③Netproductiontax:referstothedifferencebetweentheproductiontaxpaidbytheenterprisetothegovernmentandtheproductionsubsidypaidbythegovernmenttotheenterprise.

Productiontaxisataxontheproduction,sale,purchase,anduseofmaterialproductsandservicescollectedbythegovernmentfromenterprises,includingvariouspre-profittaxes.Therearethreeformsofproductiontax:oneisthetaxthatisincludedinthepriceofmaterialproductsandservicesandispaidbytheenterprisetothegovernment,suchasproducttax,businesstax,etc.;theotheristhatitisnotincludedinthepriceofmaterialproductsandservicesandisdirectlypaidbythepurchaserAndthetaxesleviedonbehalfofenterprises,suchasspecialtaxonoilburning,specialconsumption,etc.;thethirdisrelatedfeespaidtothegovernmentinaccordancewithregulations.

Productiontaxmainlyincludes:businesstax,producttax,value-addedtax,urbanmaintenanceandconstructiontax,resourcetax,educationsurcharge,realestatetax,vehicleandvesselusetax,stamptax,specialtaxonoil,landusetax,Importtaxes,specialconsumption,etc.,aswellasvariousfeespaidinaccordancewithregulations,suchaswaterresourcesfeesandwater,electricity,andcoalsurcharges.

Productiontaxcanbebasedonthe"FinancialStatus"tableintheindustrialstatisticalreportorthe"ProductSalesTaxandAdditional"iteminthe"ProfitandLossStatement"oftheaccountingreport(includingproducttax,value-addedtax,businesstax,citymaintenanceConstructiontax,resourcetaxandeducationsurcharge)andtaxitemsinthe"managementexpenses"account(includingrealestatetax,vehicleandvesselusetax,stamptax,landusetax),andthespecialoiltaxintheaccounting"taxpayable"account,Specialconsumptiontax,salttaxandotheritemsarecalculatedandobtainedinthecurrentperiod.Thevariousfeespaidcanbefoundaccordingtotherelevantaccountinginformationoftheenterprise.

Productionsubsidiesaresubsidiespaidbythegovernmenttotheproductionsectortocontrolpricesandsupportproduction,includingpricesubsidiesandlosssubsidies.Theinformationcanbeobtainedfromthe"financialstatus"tableintheindustrialstatisticalreportortheaccounting"profitandloss"Obtainedfromthe“subsidyincome”iteminthetable.

Operatingsurplus

④Operatingsurplus:referstotheremainingpartofthetotalsocialproductsafterdeductingintermediateinputs,depreciationoffixedassets,laborcompensation,andnetproductiontax.

Theformulaforcalculatingtheoperatingsurplusofindustrialenterprisesis:

Operatingsurplus=totalindustrialoutput-industrialintermediateinput-fixedassetdepreciation-laborcompensation-netproductiontax

Forcompanieswhoseproductioncycleisnotlong,thevalueofself-madesemi-finishedproductsandrawproductsatthebeginningandendoftheperioddoesnotchangemuch,itcanalsobecalculatedaccordingtothefollowingformula:

Operatingsurplus=operatingprofit-convertedintobonusProfit

Forcompaniesthathaveclosedandceasedproduction,onlytheindustrialaddedvaluecreatedbeforetheclosureandproductionshutdownarecounted.Ifsomeclosedanddiscontinuedenterprisesstillproducesomesmallcommoditiesafterthemainproductsarediscontinued,theaddedvalueoftheproductionofthesesmallcommoditiesshouldstillbecalculated.

Dataoverview