23th April Pre-fundation Wang Wenjing

The concept of accounting earnings：
1, accounting income is based on actual financial services companies to sell products or services obtained sales revenue, less the actual cost incurred by revenue derived.
2, accounting income is based on the assumption the accounting stage, it refers to a particular operating results during the production.
3, calculate the cost of accounting earnings is historical cost column.
4, the determination of accounting income to follow the principle of recognition of income.
5, accounting, revenues and expenses during the income depends on the reasonable ratio.
There are three ways of measuring GDP
a) The product method
1, the problem of double counting
2, the measuring of value added
3, some qualification
b) the income method
1,adding factor earnings
2, some qualification
c) the expenditure method
--Y=C+G+I+X--M
Comparison of two income concepts：
1, all realized gains and income differences. Accounting earnings include only realized gains and unrealized gains and losses excluded, the economic benefits will be holding enterprises operating income and profits the same treatment, regardless of whether benefits have been achieved.
2, the historical cost and the current value of the difference. Follow the principles of historical cost accounting earnings and the matching principle, beneficial to objectively reflect the business management of the business management responsibilities.
3, the financial capital, physical capital preservation and preservation of differences. Maintenance of financial capital maintenance accounting income, that only require owners to put a monetary value is not eroded the value of corporate income over investment as part of that accounting earnings.