The Research On The Influence Of New Employee Compensation Standard On SANY

In February 2006,the Ministry of Finance issued the Enterprise Accounting Standards No.9th-Employee Compensation(the previous version accounting standards of employee compensation)to regulate the scope of employee compensation,the standard applicable to the employees,confirmation and measurement,and pay disclosure.With the reform and opening up,as well as the continuous development and deepening of the market economy,the labor employment relations in our country have been diversified.What's more,the salary management has become more and more complicated which contributes to the standardization development of compensation calculation.In order to adapt to the norms and to serve diverse and complex employee compensation management system in enterprises,the Ministry of Finance issued the revised version of Enterprise Accounting Standards No.9th-Employee Compensation(the new version accounting standards of employee compensation)in 2014.The new standards expands the range of employees and employee compensation,regulates employee post leave benefits for the first time,enriches the short-term compensation and the accounting standards of termination benefits,introduces compensated absences and other long-term employee welfare.There is big difference from previous version on the scope of employee compensation,confirmation and measurement,disclosure and other aspects.It requires more on the compensation calculation and report.This article intends to discuss mainly from the accounting confirmation,measurement and report of employee compensation.The article focuses on the influences of new employee compensation standards to the largest construction machinery manufacturer SANY in China on employee compensation accounting scope,content,accounts,method of measurement,and the influence to income tax,the balance sheet,income statement and other statements,as well as the influence to the salary management of SANY.It is aimed at servicing the accounting practices of SANY,and providing reference for other enterprises.With the implement of new standards of employee compensation in SANY,the compensation accounting scope and content expand,and the understanding of the compensation calculation deepens.There are some new account titles including compensated absences,short-term profit sharing plan,post-employment benefits,termination benefits and other long-term employee benefits.The accounting calculation of employee compensation changes from revenue-expense view to asset-liability view;from output value view to market value view;from historical cost view to fair value view.What's more,the non-monetary unit as well as present value attribute and air value attribute is infiltrated into SANY's employee compensation accounting process,which caused the changes on employee compensation payable,value-added tax,income tax,dividends payable,and the interests of minority shareholders,the owner's equity on balance sheet.The changes also extend to profit statement and cash flow statement.Under all these changes,there will be broad and profound influences on SANY to build up more scientific personnel management;to allocate human resources more reasonably;to motivate staff enthusiasm more effectively;to save the cost of human capital;to form international personnel management and competition work atmosphere more easily.The implementation time of the new standards is not long,and it will take some time to apply the new standards into management system of the individual enterprise.The management team of SANY should keep studying and understanding the spirit of the new standards as well as the detail requirements,in order to make improvements on salary management,personnel management,financial management,accounting and other aspects.