How to account for long term amortized expenses, and how to account for long term amortized expenses

Long-term amortized expenses only need to make an entry every month:

Borrow: Long-term amortized expenses.

Credit: Bank deposits.

Borrow: Administrative expenses.

Credit: Long-term amortized expenses.

For example, if an enterprise carries out major repairs to the leased power generation equipment on its own, a total of 24,000 yuan will be spent on major repairs, and the repair interval will be four years. The entries are as follows:

Borrow: long-term amortized expenses and major repair expenses of 24,000; Credit: Bank deposits of 24,000 <>

When expenses are incurred:

Borrow: Long-term amortized expenses.

At the time of amortization: borrow: administrative expenses.

Credit: Long-term amortized expenses.

1. The apportionment period for accounting for the enterprise that has been incurred but should be borne by the current period and subsequent periods is 1

Expenses above the annual level, such as the improvement expenses incurred in the form of operating leases for fixed assets.

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 to this account, credited to the relevant 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.

Extended information: 1. The reconstruction expenses of fixed assets that have been fully depreciated shall be amortized in installments according to the estimated useful life of the fixed assets.

From the definition, it can be seen that renovation and expansion can generally extend the useful 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 expenses of fixed assets leased from operating lease shall be amortized in installments according to the remaining lease term 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. The expenses for major repairs of fixed assets in accordance with the provisions of the tax law shall be amortized 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 assets;

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

Regarding long-term amortized expenses, it is sufficient to make an entry every month. It is important to note that if the cost to be amortized is made up of multiple items, you need to keep track of whether each item has been amortized. After each item is amortized, it cannot be amortized, and the amortization amount shall be reduced from the amortization amount of the amortized expense.

The accounting entries are as follows:

1. If the amortization period is more than one year, the accounting entries are as follows: long-term amortized expenses - lease fees (such as housing lease fees, amortization period of 3 years) credit: cash bank deposits.

2. The accounting entries at the time of monthly amortization are as follows.

Borrow: Operating Costs - Rental Fees.

Total Reimbursement 36 months).

Credit: Long-term amortized expenses - lease fees.

Extended Materials. What is included in the long-term amortized fee.

1. Long-term amortization is the expenses that have been incurred but should be borne by the current period and subsequent periods, such as the amortization of low-value consumables, property insurance premiums with a large amount of one-time expenditure, sewage charges, regular repair costs of fixed assets, and prepaid rent of leased fixed assets.

2. The start-up expenses incurred by the enterprise during the preparation period and the expenses with an amortization period of more than one year incurred during the production and operation period shall be regarded as "deferred assets" and shall not be listed as expenses to be amortized.

Advanced long-term amortized expenses. Then the long-term amortized expenses are amortized in time (months), monthly or quarterly to make entries

Borrow: Administrative expenses.

Credit: Long-term amortized expenses.

The methods of long-term amortization are: straight-line amortization, incremental amortization, decreasing amortization, output-based amortization, and time- and output-based amortization.

1. Straight-line amortization method.

The straight-line amortization method amortizes long-term amortized expenses in the same proportion as the amortization amount in each period. Accounting entries for recognition of long-term amortized expenses are prepared in such a way that the long-term amortized expenses account is debited and the bank account is credited.

2. Incremental amortization method.

Accounting entries for recognition of long-term amortized expenses are prepared by debiting the long-term amortized expense account and crediting the bank account at the same time as the acquisition of a particular asset. In each period of incremental amortization, the amortization expense account is debited and the long-term amortization account is credited.

3. Decreasing amortization method.

The decreasing amortization method is a method in which the long-term amortized expenses of each period are higher in the early stage and gradually reduce the amortization ratio of each period in the later period. Accounting entries for recognition of long-term amortized expenses are prepared by debiting the long-term amortized expense account and crediting the bank account at the same time as the acquisition of a particular asset.

4. Output-based amortization method.

Accounting entries for recognition of long-term amortized expenses are prepared by debiting the long-term amortized expense account and crediting the bank account at the same time as the acquisition of a particular asset. After the enterprise completes the production and sales process, the actual total production at present is calculated, and based on this, the amortization expense account is debited and the long-term amortization expense account is credited.

5. Amortization method based on time and output.

Accounting entries for recognition of long-term amortized expenses are prepared by debiting the long-term amortized expense account and crediting the bank account at the same time as the acquisition of a particular asset. After the enterprise completes the production and sales process, the total amortization expense is accumulated into the depreciation expense in the economic benefit period, and the long-term amortized expense is accumulated and amortized.

The long-term amortized expense account is used to account for various expenses that have been incurred by the enterprise but have an amortization period of more than one year (excluding one year), including expenses for repairing fixed assets, expenses for improving leased fixed assets and other expenses to be amortized with an amortization period of more than one year. So how to deal with the long-term amortized expenses of the enterprise?

Accounting entries for long-term amortized expenses.

1. When included in the long-term amortized expenses:

Borrow: Long-term amortized expenses.

Credit: cash on hand bank deposits.

2. When amortized monthly.

Borrow: Administrative expenses.

Credit: Long-term amortized expenses.

Until the spread is finished.

What is a long-term deferred expense?

Long-term amortized expenses are the expenses that have been incurred by the enterprise but have an amortization period of more than one year (excluding one year), including the expenses for the repair 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.

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

What are the management fees?

Management expenses refer to the various expenses incurred by the administrative department of the enterprise for the organization and management of production and business activities. The specific items included include: the board of directors and the administrative department of the enterprise in the operation and management of the enterprise, or should be borne by the enterprise in the unified company funds, trade union funds, unemployment insurance premiums, labor insurance premiums, board of directors fees, fees for hiring intermediaries, consulting fees, litigation fees, business entertainment expenses, office expenses, travel expenses, postal and telecommunications expenses, greening expenses, management personnel wages and welfare expenses, etc.

In the course of the company's chain and digital tour operation, the expenses with an amortization period of more than one year are called long-term amortized expenses. How should long-term amortized expenses be accounted for?

Accounting treatment of long-term amortized expenses.

Accounting treatment of long-term amortized expenses: The long-term amortized expenses incurred by the enterprise are debited to the account of "long-term amortized expenses" and credited to the accounts of "bank deposits" and "raw materials". Amortize long-term amortized expenses, debit accounts such as "administrative expenses" and "selling expenses", and credit "long-term amortized expenses" accounts.

What is the meaning of long-term deferred expenses?

Long-term amortized expenses refer to 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 (excluding one year), such as the improvement expenses of fixed assets leased in the form of operating leases. The loan interest, rent, etc., which should be borne by the current period, shall not be treated as long-term amortized expenses.

Long-term amortized expenses should be accounted for separately. The amortization of the expense item shall be amortized in equal installments during the benefit period, and if it cannot benefit subsequent accounting periods, the amortized value of the item that has not yet been amortized shall be transferred to the current profit or loss.

The expenditure on the improvement of fixed assets leased in the form of operating lease refers to the expenses for modification, renovation and reconstruction that can increase the utility of the leased fixed assets or extend the long-term service life of the leased fixed assets. It should be amortized evenly over the shorter of the lease term and the expected useful life.

What are the types of long-term deferred expenses?

Long-term amortized expenses belong to asset accounts, which include cash in hand, bank deposits, other monetary funds, trading financial assets, notes receivable, accounts receivable, prepaid accounts, interest receivables, other receivables, and bad debt provisions.

An asset class account is an account that reflects the increase or decrease of assets. Asset accounts can be divided into two categories: current assets and non-current assets according to the speed of asset realization (liquidity), which are used to account for the increase, decrease, change and balance of various assets.

When learning the asset subject, some friends may find it difficult to understand the long-term amortized expense, why it belongs to the asset class? How should Weihui be dealt with in accounting? Let's learn together today!

What are long-term amortized expenses?

The so-called long-term amortized expenses refer to the expenses that have been incurred by the enterprise but have an amortization period of more than one year (excluding one year). Generally speaking, it means that the pants have been paid, but this cost means that the answer needs to be paid in the subsequent periods, and it should be included in the relevant costs and expenses in the subsequent periods.

What are the characteristics of long-term amortized expenses?

1.It is a long-term asset;

2.It is the various expenses that the enterprise has already incurred;

3.It can benefit future accounting periods.

What should I do about the accounting treatment of long-term amortized expenses?

1. Long-term amortized expenses incurred by the enterprise.

Borrow: Long-term amortized expenses.

Credit: bank deposits and other related accounts.

2. Amortize long-term amortized expenses.

Borrow: manufacturing expenses (selling expenses, administrative expenses).

Credit: Long-term amortized expenses.

Long-term amortized expenses case description:

On January 1, 2017, listed company A rented a production equipment from company B for a lease period of 3 years, the equipment is expected to have a service life of 10 years, and the rent is paid in 3 installments, with a total payment of 600,000 yuan, 150,000 yuan on January 1, 2017, and 150,000 yuan at the end of each year. (Operating Lease).

January 1.

Borrow: 150,000 long-term amortized expenses

Credit: Bank deposit 150,000

December 31, year.

Borrow: management fee 200,000

Credit: Long-term amortized expenses 50,000

Bank deposit 150000

December 31, year.

Borrow: management fee 200,000

Credit: Long-term amortized expenses 50,000

Bank deposit 150000

3.December 31, year.

Borrow: management fee 200,000

Credit: Long-term amortized expenses 50,000

Bank deposit 150000