What are the costs included in long term amortized expenses

Long-term amortized expenses refer to the expenses that have been incurred by the enterprise but have an amortization period of more than 1 year (excluding 1 year), including start-up expenses, improvement expenses of leased fixed assets, and major repair expenses of fixed assets with an amortization period of more than 1 year, ** issuance expenses, etc. Loan interest and rent, etc., which should be borne by the current period, shall not be treated as long-term amortized expenses.

Long-term amortized expenses cannot be fully included in the profit or loss of the current year, but shall be amortized in installments in subsequent years, including start-up costs, fixed asset repair expenses, leased fixed assets improvement expenses and other amortized expenses with an amortization period of more than one year (no longer including start-up costs and fixed asset repair expenses). According to the new accounting standards, start-up costs and repair costs are included in profit or loss for the current period in a lump sum. Among them, the start-up cost is included in the current management expenses, and the repair costs are included in the sales expenses or management expenses (that is, the repair costs are all expensed).

Among them, start-up expenses refer to the expenses incurred by the enterprise during the preparation period, including employee salaries, office expenses, training expenses, travel expenses, printing costs, registration fees and borrowing costs that are not included in the value of fixed assets. Start-up costs, fixed asset repair costs, improvement costs of leased fixed assets and other expenses to be amortized with an amortization period of more than one year are amortized in accordance with the provisions of this account. The amount in the balance sheet reflects the amortized value of the company's various long-term amortized expenses that have not yet been amortized.

Expenditures with a benefit period of more than one year do not constitute an asset item.

Long-term amortized expenses are the expenses that the account uses to account for the expenses that have been incurred by the enterprise but have an amortization period of more than 1 year (excluding 1 year).

It includes expenses for repairing fixed assets, expenses for improvement of leased fixed assets, and other expenses to be amortized with an amortization period of more than one year.

Under the "long-term amortized expenses" account, the enterprise should set up a detailed account according to the type of expense, conduct detailed accounting, and disclose its amortized value, amortization period, amortization method, etc. according to the expense items in the notes to the accounting statements.

That's it: The long-term amortized expenses are mainly accounted for as follows:

1. This account accounts for the expenses that have been incurred by the enterprise but should be borne by the current period and subsequent periods with an amortization period of more than one year, such as the improvement expenses incurred in the fixed assets leased in the form of operating leases.

2. This subject should be accounted for in detail according to the cost items.

3. The long-term amortized expenses incurred by the enterprise shall be debited from this account and credited"Bank deposits"、"Raw materials"and other subjects. Amortization of long-term amortized expenses, debited"Management fees"、"Selling expenses"and other accounts, credit this account.

4. The debit balance at the end of this account reflects the amortized value of the long-term amortized expenses that have not been amortized by the enterprise.

The "long-term amortized expenses" account is used to calculate the expenses that have been incurred by the enterprise but have an amortization period of more than one year (excluding one year), including the repair expenses of fixed assets, the improvement expenses of leased fixed assets and other expenses to be amortized with an amortization period of more than one year.

1. Reconstruction expenses of fixed assets that have been fully depreciated.

From the definition, it can be seen that renovation and expansion can generally extend the service life of assets. For "fixed assets that have been fully depreciated", the small business standard stipulates that the depreciation period cannot be adjusted, so it can only be accounted for through long-term amortized expenses and amortized over the expected useful life of the fixed assets.

2. The reconstruction of operating leased fixed assets is laughing.

Amortization in installments for the remaining lease term as agreed in the contract. The lessee only has the right to use the asset within the term specified in the agreement, so the reconstruction expenses incurred in the fixed assets leased in the form of operating leases cannot be included in the cost of fixed assets, but can only be included in the long-term amortized expenses, which are evenly distributed during the lease period agreed in the agreement. For "Reconstruction Expenses of Fixed Assets under Operating Lease", the accounting principles and methods in the Accounting Standards for Business Enterprises and the Accounting Standards for Small Enterprises are the same.

3. Expenses for major repairs of fixed assets in accordance with the provisions of the tax law.

Amortization is carried out in installments according to the remaining useful life of the fixed assets. The overhaul expenditure of fixed assets mentioned in Item (3) of Article 13 of the Enterprise Income Tax Law refers to the expenditure that meets the following conditions at the same time:

The repair expenditure reaches more than 50% of the tax base at the time of acquisition of the fixed asset.

The service life of fixed assets will be extended by more than 2 years after repair.

When the major repair expenditure that meets the above two conditions is incurred, the "long-term amortized expenses" account will be debited, and the "raw materials", "bank deposits" and other accounts will be credited; The expense is amortized over the useful life of the fixed asset, and the cost of the relevant asset or the current profit and loss account is debited and the "long-term amortized expense" account is credited.

4. Other long-term amortized expenses.

Amortization shall be made in installments starting from the month following the month in which the expenditure is incurred, and the amortization period shall not be less than 3 years.

That's it: The long-term amortized expenses are mainly accounted for as follows:

1. This account accounts for the expenses that have been incurred by the enterprise but should be borne by the current period and subsequent return dates with an amortization period of more than one year, such as the improvement expenses incurred in the fixed assets leased in the form of operating leases.

2. This subject should be accounted for in detail according to the cost items. Ascending.

3. The long-term amortized expenses incurred by the enterprise shall be debited from this account and credited"Bank deposits"、"Raw materials"and other subjects. Amortization of long-term amortized expenses, debited"Management fees"、"Selling expenses"and other accounts, credit this account.

4. The debit balance at the end of the period reflects the amortized value of the long-term amortized expenses that have not been amortized by the enterprise.

Long-term amortized expensesThe amortization should be amortized evenly over the earnings period, and its main contents include:

1. Fixed assets.

If the major repair expenditure adopts the method of amortization, the actual major repair expenditure incurred by the register shall be amortized evenly during the interval between major repairs.

2. The improvement expenditure of leased fixed assets shall be amortized equally within the shorter period of the lease term and the remaining useful life of the leased assets.

3. If the handling fee or commission paid by the shares entrusted to other units is regarded as a long-term amortized expense according to the regulations, it shall be amortized evenly within a period of no more than 2 years and included in the management expenses.

4. The start-up expenses incurred by the enterprise during the preparation period.

Production and operation should be started.

From the current month, it will be included in the profit or loss of the month of commencement of production and operation.

Basic principles of long-term amortized cost accounting

1) The expenses incurred by the enterprise during the preparation period, except for the purchase and construction of fixed assets, should be collected in the long-term amortized expenses first, and shall be included in the profit or loss of the current period of production and operation after the enterprise starts production and operation.

2) The improvement expenses of leased fixed assets shall be amortized equally over the shorter period of the lease term and the expected useful life.

3) The expenditure on major repairs of fixed assets shall be amortized by the method of amortization, and the actual expenses incurred in major repairs shall be amortized evenly over the period between major repairs.

4) The handling fee or commission paid by the shares **** entrusted to other units to issue ** minus the interest income during the freezing period of the issuance ** is not enough to offset from the premium of the issuance **, or there is no premium, as a long-term amortization expense, amortized evenly within a period of no more than 2 years, included in the management expenses.

5) Other long-term amortized expenses shall be amortized evenly over the benefit period.

Long-term amortized expenses include start-up expenses, improvement expenses of leased fixed assets, major repair expenses of fixed assets with an amortization period of more than one year, and the issuance of Hongzhou bills.

Long-term amortized expenses are used to account for the expenses that have been incurred by the enterprise but have an amortization period of more than 1 year (excluding 1 year).

The main characteristics of long-term amortized expenses include: long-term amortized expenses are long-term assets; Long-term amortized expenses are the expenses that have been incurred by the enterprise; Long-term amortized costs should benefit future periods.

In"Long-term amortized expenses"Under the account, the enterprise should set up a detailed account according to the type of expense, carry out detailed accounting, and disclose its amortized value according to the expense item in the notes to the accounting statement, the amortization period, the amortization method, etc.