Accounting estimates change and error correction are sometimes difficult to distinguish, especially when the accounting estimates change and the error correction due to accounting error is caused.

The key to distinguish between the two is to determine whether there is any mistake in the earlier accounting estimate.

If accounting information is not considered or is not used correctly when making financial statements, reliable accounting information can be reasonably predicted. This accounting estimate is wrong. It belongs to the previous error and needs to follow the accounting correction method of error correction.

On the contrary, if the accounting estimate at that time was based on the reliable facts that existed and could be obtained at that time, then the change of accounting estimate was due to the changes in the current state of assets and liabilities and the expected economic interests and obligations in the future.

The processing method.

Accounting treatment change is different from accounting policy change.

The accounting treatment of accounting policy changes requires that the accounting policy changes provide more reliable and more relevant accounting information. It should be handled by retrospective adjustment. If it is not feasible to determine the impact of accounting policy changes on the number of early stages of reporting, it should be

The earliest accounting period was initially applied to the changed accounting policy.

At the beginning of the current period, it is not feasible to determine the cumulative impact of accounting policy changes on the previous periods, and the future applicable law should be adopted.

Changes in accounting estimates

The guidelines require uniform application of future applicable law.

If an enterprise is unable to distinguish a change from an accounting policy change or an accounting estimate change, it should treat it as a change of accounting estimate.

The accounting treatment for early correction should be dealt with differently. For unimportant Early mistakes, we should directly adjust the relevant items in the same period as before.

For important early errors, enterprises should use the retrospective restatement method to correct, but it is not feasible to determine the cumulative impact number of previous errors.

The accounting errors in the reporting year that are found between the annual balance sheet date and the financial report approval date and the prior errors that are not important before the reporting year shall be dealt with in accordance with the balance sheet date.

The twenty-first provision of the enterprise income tax law of the People's Republic of China stipulates: "when calculating taxable income, the financial and accounting treatment methods of enterprises are inconsistent with the provisions of tax laws and administrative regulations, and shall be calculated in accordance with the provisions of tax laws and administrative regulations."

Whether accounting policy changes, accounting estimates change or early accounting errors, as long as there is a discrepancy between the accounting profit and loss of the relevant year and the taxable income of the year, the taxable income must be calculated according to the provisions of the tax law.