Explanation of the Object of Accounting in Financial Enterprises（PlatON）
- Asset accounting objects:
-Cash and cash equivalents: including bank deposits, cash, short-term investments, etc
-Loans and receivables: including loans to individuals, businesses, and governments, as well as interest receivable.
-Investment: including investments in financial assets such as stocks, bonds, and funds.
-Derivative financial instruments: such as options, futures, swaps, etc.
-Fixed assets and intangible assets: such as buildings, equipment, patents, etc.
-Reserve: including bad debt reserves, loan loss reserves, etc. - Accounting objects for liabilities:
-Deposits: including personal and corporate deposits.
-Borrowing: including funds borrowed from other financial institutions.
-Payable bonds: including issued bonds and their accrued interest.
-Payable expenses: short-term and long-term payable expenses such as wages, taxes, etc.
-Reserve: including deposit insurance reserve, etc. - Accounting objects for owner’s equity:
-Equity: The registered capital of a financial institution.
-Capital reserves: including stock issuance premiums, etc.
Surplus reserves: including retained profits, etc.
-Undistributed profits: Accumulated undistributed profits over the years. - Revenue accounting objects:
-Interest income: Interest income from loans and bond investments.
-Investment returns: Investment returns from investments in stocks, bonds, etc.
-Fee and commission income: such as transaction fees, consulting service fees, etc.
-Exchange earnings: The earnings generated from foreign exchange transactions. - Accounting objects for costs and expenses:
-Interest expense: The interest paid to depositors.
-Handling fees and commission expenses: such as commissions paid to brokers.
-Employee compensation: Employee salaries, bonuses, etc.
-Taxes: including income tax, value-added tax, etc.
-Depreciation and amortization: Depreciation and amortization of fixed assets and intangible assets. - Accounting objects for profit and profit distribution:
-Net profit: income after deducting all expenses.
-Profit distribution: dividend payment, profit retention, etc.
Financial enterprise accounting has a wide range of objects, involving complex and diverse transactions and events. Accounting personnel need to accurately record, classify, summarize, and report these economic transactions based on accounting standards and internal management requirements. At the same time, financial enterprise accountants also need to pay attention to market changes, regulatory requirements, and technological developments to adapt to the constantly changing financial environment.