Guodian Power Perpetual Bond Financing Accounting Confirmation And Financial Impact Study

There is no clearly defined maturity period for perpetual bonds.The principal invested by the holder does not contain the right to pay off,but the interest can be obtained within a certain period.In recent years,perpetual bonds have become a new financing option for non-financial enterprises.Compared with ordinary debt financing or equity financing,perpetual debt has more financial advantages.It has theoretical and practical significance for non-financial enterprise perpetual debt financing accounting confirmation and financial impact research.This article mainly studies non-financial companies that issue perpetual bonds from two aspects.The first is related theoretical research on perpetual bonds,with the emphasis on judging the accounting attributes of perpetual bonds.Perpetual bonds have both debt and equity.When the relevant standards are followed in specific judgments,the issuance of specific contracts cannot be ignored.The requirements in the clause.The second is to study the financial impact of perpetual bonds,mainly considering capital structure,financing costs and debt solvency analysis.Through the above research,we need to pay special attention to some matters: when classifying the accounting attributes of perpetual bonds,the issuer's autonomy in choosing interest payment and whether it can be redeemed at maturity are the keys to determining the standard,but perpetual bonds The possibility of redemption is also worthy of attention;when taxing perpetual bonds,investors and financiers may not be taxed or double taxation may be avoided;the provisions on interest jumps in this article are likely to repay the company's interest Brings certain risks.The case study object selected perpetual bonds issued by Guodian Power in 2013 with a total value of 1 billion yuan.This article first combines the provisions of the tax law with the issuance of perpetual bonds and the main part of the clause to reasonably estimate the judgment of accounting attributes.Second,the comparative analysis method is mainly used to analyze the financial impact of perpetual bonds in the case.The first aspect of the comparison is about the capital structure and solvency of the enterprise before and after the issue of permanent debt.The second aspect is to compare the financing effects of bonds and perpetual bonds.After a comprehensive analysis,the advantages of permanent debt financing can be seen more clearly.Through research,the following problems were found: the accounting attribute judgment did not consider the impact of the duration of the redemption and the possibility of redemption;there may be problems in the tax treatment of perpetual bonds that are not taxed or double taxed by both parties;Certain repayment risk;the issue of cash flow guarantee interest repayment after the issuance of perpetual bonds;whether the perpetual bonds should be redeemed on the first maturity date.In terms of promoting the improvement of the asset-liability structure and improving the solvency in the short term,perpetual debt financing has an advantageous role that other financing methods do not have,but since the measurement of interest is distributed in after-tax profits,the tax shield The effect has not appeared,and the solvency cannot be improved over a longer period of time.According to the related parties involved in these issues,the author has the following thoughts and suggestions: The judgment basis of the accounting attributes of perpetual debt should take into account the possibility of redemption;the tax clause should pay income tax on its interest and clear the pre-tax deduction and the investor Tax exemption;in the decision-making process of perpetual debt financing,the issuer should take into account various factors such as its cost and risk resistance.