An Analysis of the Influence of New Guidelines for Government Subsidies on China's New Energy Automobile Industry - A Case Study of BYD

Abstract

In May 2017, the Ministry of Finance promulgated a new guideline for government subsidies. This paper compares the changes of the new and old criteria of government subsidy, and sums up the accounting methods of government subsidy and financial discount under the new criteria. At the same time, this paper takes BYD, one of the leaders in the new energy automobile industry, as the analysis object, analyzing BYD's balance sheet, profit statement and financial indicators according to the new government subsidy standards, and putting forward relevant suggestions for listed companies.