What is the calculation of the capitalized amount of interest on special borrowings?

1.Capitalization of borrowing interest.

Determination of the amount.

1) Determination of the capitalization amount of special borrowings.

Capitalized amount of special borrowings Actual interest expense during the capitalization period Interest income on deposits during the capitalization period.

Amount of special borrowing expense Actual interest expense during the expense period Interest income from deposits during the expense period.

2) General borrowing.

Capitalized Interest Expense on General Borrowings The weighted average of accumulated asset expenditures exceeding the portion of special borrowings.

The capitalization rate of general borrowings occupied.

Wherein: the capitalization rate of the general borrowings occupied The weighted average interest rate of the general borrowings occupied.

The sum of the interest actually incurred in the current period of the occupied general borrowings The weighted average of the principal of the occupied general borrowings.

Wherein: the weighted average of the principal of the general loan occupied (the principal of each general loan occupied, the number of days occupied by each general loan in the current period, and the number of days in the current period).

Extended Information: The borrowings are used for investment in fixed assets.

, the interest on its borrowing and other financial expenses.

The investment project should be credited to the project before it is put into production.

The cost of construction, which is part of the value of the fixed asset, is capitalized, and it is a component of the asset.

However, when the project is officially put into production, the interest and other expenses incurred on the loan that has not yet been repaid shall be recorded in the financial expenses of production and operation activities, that is, in the income statement.

on the reflection. Decide on a profile.

Specialized contracts. 1) The amount of capitalization of interest expenses on special loansArticle 6 (1) of these standards stipulates that if a special loan is borrowed for the purpose of purchasing, constructing or producing assets that meet the conditions for capitalization, the interest expense actually incurred in the current period of the special loan shall be subtracted from the interest income obtained by depositing the unused borrowed funds in the bank or the investment income obtained from temporary investment.

The subsequent amount shall be determined as the capitalized amount of the interest expense of the special borrowing, and shall be included in the cost of assets that meet the conditions for capitalization during the capitalization period.

Special loans should have a clear special purpose, that is, funds borrowed specifically for the purchase, construction or production of an asset that meets the conditions for capitalization, and there should usually be a loan contract indicating the special purpose.

General borrowing. 2) The capitalized amount of interest expense on general borrowings.

General borrowing refers to borrowings other than special borrowings. According to Article 6 (2) of these standards, if a general loan is occupied for the acquisition, construction or production of assets eligible for capitalization during the period of capitalization of borrowing costs, the amount of interest to be capitalized on the general loan shall be calculated according to the following formula:

Capitalization amount of interest expense on general borrowings = weighted average of accumulated asset expenditures exceeding the portion of special borrowings Capitalization rate of general borrowings occupied.

Capitalization rate of general borrowings occupied = weighted average interest rate of general borrowings occupied = sum of interest actually incurred in the current period of general borrowings occupied Weighted average principal of general borrowings occupied.

Determination of the amount of interest capitalization.

The amount of interest (including amortization of discounts or premiums) capitalized for each accounting period during the capitalization period of borrowing costs shall be determined in accordance with the following method:

1) Where a special loan is borrowed for the purpose of purchasing, constructing or producing assets that meet the conditions for capitalization, it shall be determined by deducting the interest income obtained from depositing the unused borrowed funds in the bank or the investment income obtained from temporary investment.

2) If a general loan is occupied for the purpose of purchasing, constructing or producing assets that meet the conditions for capitalization, the enterprise shall calculate and determine the amount of interest to be capitalized on the general loan based on the weighted average of the asset expenditure exceeding the portion of the special loan multiplied by the capitalization rate of the general loan occupied. The capitalization rate shall be calculated and determined on the basis of the weighted average interest rate of general borrowings.

3) If there is a discount or premium in the loan, the amount of discount or premium to be amortized in each accounting period shall be determined in accordance with the effective interest rate method, and the amount of interest in each period shall be adjusted. During the capitalization period, the amount of interest capitalized in each accounting period shall not exceed the amount of interest actually incurred on the relevant borrowings in the current period.

Capitalized Interest Calculation Formula:

1. The capitalization amount of interest in each accounting period = the weighted average of the accumulated expenditure on the purchase and construction of fixed assets by the end of the current period Capitalization rate;

2. Weighted average of accumulated expenditures = amount of expenditure per asset Number of days (months) actually occupied by each asset expenditure Number of days (months) covered in the accounting period

3. Capitalization rate = the sum of the actual interest incurred in the current period of the special loan and the weighted average of the principal of the special loan.

Condition: The asset expenditure has been incurred. Borrowing costs have been incurred. Acquisition, construction or production activities necessary to bring the asset to its intended usable or saleable condition have begun.

1) Asset expenditures include expenditures incurred in the form of cash payments, transfers of non-cash assets and assumptions of interest-bearing debts.

2) Borrowing costs have been incurred, which refers to the borrowing costs of the enterprise specifically borrowing funds for the purpose of purchasing, constructing or producing assets that meet the conditions for capitalization, or the borrowing costs of general borrowing.

3) The commencement of the purchase, construction or production activities necessary to make the assets reach the intended usable or saleable state refers to the commencement of the physical construction or production of the assets that meet the conditions for capitalization, such as the installation of the main equipment, the actual commencement of construction of the plant, etc.

Scope: The accounting standards stipulate that the scope of assets that should be capitalized for the borrowing costs of Xiangmo cracking is fixed assets, and only the borrowing costs that occur during the acquisition or construction of fixed assets can be capitalized under the conditions that meet the conditions. Borrowing costs incurred on other assets (e.g. inventory, intangible assets) cannot be capitalized.

The scope of borrowings that should be capitalized is the amount borrowed for the purchase and construction of fixed assets, excluding working capital borrowings. The tax law stipulates that the borrowing costs incurred by taxpayers for the purchase, construction and production of fixed assets and intangible assets shall be included in the cost of the relevant assets as capital expenditures during the purchase and construction of the relevant assets. If the taxpayer borrows money without specifying the purpose, its borrowing costs shall be reasonably calculated according to the proportion of funds occupied by operating expenditure and capital expenditure, and the borrowing costs that should be included in the cost of relevant assets and the borrowing costs that can be directly deducted.

1. Capitalization.

Formula: Capitalized interest on special borrowings = Total interest during the capitalization period of special borrowings Interest income obtained from depositing unused borrowed amounts into banks or investment income obtained from temporary investments.

Solution: Calculate the total interest during the capitalization period; Calculate the interest income or investment income of idle funds during the capitalization period; Invert the capitalized amount.

Entries Loan: Construction in progress, etc. Bank Deposits Interest Receivable Credit: Interest Payable.

2. Expense.

Entries Loan: Construction in Progress, etc. Financial Expenses Credit: Interest Payable.

Idea: Calculate the total interest; Calculate the amount to be capitalized; The extrusion expense amount is reversed (included in the financial expense).

The focus is on calculating the capitalized amount of general borrowing interest expense The capitalized amount of general borrowing interest expense The weighted average of accumulated asset expenditures The capitalization rate of general borrowings occupied.

Extended Information: Treatment of Interest Expense on General Borrowings:

1. Where there is no agreement on interest in the loan contract relationship, and the lender claims to pay the interest during the loan period, the people's court will not support it.

2. In the case of a loan contract relationship between non-natural persons (between legal persons and legal persons or between units), where the borrower and the borrower have an unclear agreement on the loan interest, and the lender claims the interest, the people's court shall determine the interest in light of the content of the private loan contract and on the basis of factors such as the local or parties' transaction methods, trading habits, and market interest rates.

3. The people's court shall not intervene if the borrower voluntarily pays the interest rate without agreeing on it, or voluntarily pays interest or liquidated damages in excess of the agreed interest rate, and does not harm the interests of the state, the collective, or a third party.

Legal basis: According to Article 211 of the Contract Law, if there is no agreement on the payment of interest in the loan contract between natural persons or the agreement is not clear, it shall be deemed that the interest is not paid.

Treatment of interest in the process of borrowing money:

1. If there is a dispute between the borrower and the borrower on whether there is an agreed interest rate and cannot prove it, it shall be handled as interest-free.

2. If the parties agree on the interest rate standard and there is a dispute, the interest rate standard may be determined within the standard of no more than 4 times the interest rate of the same type of bank loan. The part that exceeds 4 times is not protected by law, but if there is no dispute, you can get a higher profit.

3. The lender shall not include the interest in the principal to calculate compound interest, otherwise it will not be protected by law.

1) 20x1 special loan capitalization amount: 9000 8% (9000-6750) 6% 6 12 + 9000 10% 6 12 = 10,000 yuan).

2) 20x1 general borrowing capitalization amount: [(6750+13500-9000-9000) 6 12+4500 3 12] (4500 6%+4500 8%) (4500+4500) 10,000 yuan).

Capitalization rate of general borrowings = weighted average interest rate of occupied general borrowings = sum of the actual interest incurred in the current period of occupied general borrowings 100% of the weighted average principal of occupied general borrowings.

There are three conditions for the capitalization of general borrowings:

1. Asset expenditure has been incurred.

2. Borrowing costs have been incurred.

3. The construction or production activities necessary to bring the asset to the intended usable or marketable state have begun.

Precautions for incurring borrowing costs.

Article 37 of the Regulations for the Implementation of the Enterprise Income Tax Law: Reasonable borrowing expenses incurred by enterprises in production and business activities that do not need to be capitalized are allowed to be deducted.

If the company borrows money for the purchase or construction of fixed assets, intangible assets and inventories that can only reach the predetermined saleable state after more than 12 months of construction, the reasonable borrowing costs incurred during the purchase and construction of the relevant assets shall be included in the cost of the relevant assets as capital expenditure and deducted in accordance with the provisions of these Regulations.

I'm fooling myself. Depending on your formula, the capitalization rate must be 8%. It's just that the amount of interest expense will have different results depending on the time.

If you use loans with different interest rates at different times, calculating the capitalization rate will have different results.

When confirming the capitalization rate, there is no need to consider capitalization, the period is generally calculated the interest rate of the previous year, there is no difference between your two methods, if the numerator and denominator are considered at the same time, it is equivalent to nine months or six months that you write, it does not affect the capitalization, and the period is considered separately when calculating interest, so that there will be no confusion.

Yes, the period of capitalization needs to be taken into account.

There is only one general loan that does not need to calculate the capitalization rate, and can directly use its own interest rate. The capitalization rate is only required to calculate the capitalization rate for multiple general borrowings, in order to take into account the interest rate of each borrowing.

Capitalized amount of interest on general borrowings = weighted average of accumulated expenses on general borrowings as of the end of the current period Capitalization rate.

1) Calculation of the weighted average of cumulative expenditures.

Weighted average of accumulated expenses = (amount of expenditure per asset Number of days actually occupied per asset Amount of expenditure per asset Number of days covered in the accounting period).

2) Calculation of the capitalization rate (not linked to asset expenditure).

The capitalization rate is the interest rate of the acquisition and construction of fixed assets for only one general borrowing, and the capitalization rate is the weighted average interest rate for the acquisition and construction of more than one general borrowing.

Weighted average interest rate = the sum of the interest actually incurred in the current period of the borrowing Average of the principal of the borrowing plus the weight.

Wherein: Weighted average of borrowing principal = (Principal of each borrowing amount The number of days actually occupied by each borrowing The number of days covered in the accounting period).

Interest refers to the remuneration that the holder of money (creditor) receives from the borrower (debtor) for lending money or money capital. This includes interest on deposits, loans, and interest on various bonds. Under capitalism, the source of interest is the surplus value created by wage workers.

The essence of interest is a special form of transformation of surplus value, which is part of the profit.