What are the unrecognized financing expense accounting entries

Unrecognized financing expenses are an allowance for long-term payables, and if the enterprise purchases the relevant assets beyond the normal credit terms and deferred payment of the price, which is essentially of a financing nature, it shall be debited according to the present value of the purchase price"Fixed assets"、"Construction in progress"、"Intangible assets"、"R&D expenditures"and other accounts, according to the amount payable, credited"Long-term payables"The account is debited by the difference between them.

Unconfirmed Financing Charge Definition:

The unrecognized financing expense account reflects the unrealized financing expenses incurred by financing leased assets (such as fixed assets and intangible assets) or long-term borrowings that should be amortized during the lease period. It can also be regarded as the interest that the lessee must pay to the lessor for the purpose of financing, because the financial lease itself contains the purpose of financing.

In the new guidelines,"Financing charges are not recognized"Account number 2702, the nature of the account is liabilities, which is used as a deduction item for long-term payables in the preparation of financial statements, that is, in the balance sheet"Long-term payables"The project to:"Long-term payables"Account Balance Minus"Financing charges are not recognized"Account balances and long-term payables due within one year are filled.

Main content:

1. This account accounts for the unrecognized financing expenses that should be included in interest expenses in installments.

2. This account shall be accounted for in detail according to the unrecognized financing expense items.

3. Main accounting treatment of unrecognized financing expenses.

1) If the enterprise purchases the relevant assets beyond the normal credit terms and deferred payment of the price, which is essentially of a financing nature, it shall be debited according to the present value of the purchase price"Fixed assets"、"Construction in progress"、"Intangible assets"、"R&D expenditures"and other accounts, according to the amount payable, credited"Long-term payables"The account is debited by the difference between them.

The interest expense for the current period is calculated and determined using the effective interest rate method, and is debited"Finance Expenses"、"Construction in progress"、"R&D expenditures"Account, which is credited to this account.

2) The fixed assets leased by the enterprise for finance shall be debited at the amount that should be included in the cost of fixed assets (whichever is lower between the fair value of the leased assets and the present value of the minimum lease payment on the lease commencement date, plus the initial direct expenses) on the commencement date of the lease term"Construction in progress"or"Fixed assets"Account, at the minimum lease payment, is credited"Long-term payables"Accounts, which are credited to the initial direct expenses incurred"Bank deposits"and other accounts, according to their differences, debit this account.

Amortization of unrecognized financing expenses using the effective interest rate method, debited"Finance Expenses"、"Construction in progress"and other accounts, credit this account.

4. The debit balance at the end of the period reflects the amortized value of the unrecognized financing expenses of the enterprise.

According to the new Accounting Standard for Business Enterprises No. 21 - Leases, the lessee should fill in the long-term payables in the balance sheet according to the closing balance of long-term payables, minus the closing balance of unrecognized financing expenses, which are divided into long-term liabilities and long-term liabilities due within one year. Judging from the presentation of the statements, it should fall under the category of debt. ”

If an enterprise purchases relevant assets that exceed the normal credit terms and defer payment of the price, and are essentially of a financing nature, it shall, according to the present value of the purchase price, borrow: fixed assets, projects in progress, intangible assets, R&D expenditures and other accounts, and borrow: unrecognized financing expenses according to the difference, credit:

The long-term payables account is calculated and determined the interest expense of the current period according to the amount payable, using the effective interest rate method, debiting: financial expenses, construction in progress, and R&D expenditure accounts, and crediting: unrecognized financing expenses.

On the commencement date of the lease term, the fixed assets leased by the enterprise shall be included in the cost of fixed assets (whichever is lower of the fair value of the leased assets and the present value of the minimum lease payment on the lease commencement date, plus the initial direct expenses).

The long-term accounts payable account shall be amortized in installments according to the amount payable, credit: bank deposits, etc., according to the difference between the initial direct and land expenses incurred, and the unrecognized financing expenses shall be amortized in installments using the effective interest rate method

The debit balance at the end of the period of this account reflects the amortized value of the unrecognized financing expenses of the enterprise according to the difference.

In accounting practice, unrecognized financing expenses refer to the "unrecognized financing expenses" account, which is a liability account, and this account accounts for the unrecognized financing expenses that should be included in interest expenses in installments.

Explanation of unrecognized financing charges.

1. Unrecognized financing costs refer to the financing costs incurred due to the insufficient existing funds of the enterprise and the choice to pay in installments when purchasing assets, resulting in the actual payment being greater than the purchase value of the assets, and the difference between the two is the financing cost arising from the deferred payment. Since this cost is incurred throughout the payment period, it is apportioned over the entire period at a reasonable apportionment rate.

2. Unrecognized financing expenses mainly serve financial leased assets, which mainly occur in the unrealized financing expenses that are amortized during various periods of the lease period such as fixed assets, intangible assets or long-term loans.

Financing costs are not recognized, and the loan is wide-limbed in the direction.

The unrecognized financing expense is a liability account, and the borrowing direction is the debit balance to indicate the increase, which is the newly increased "unrecognized financing expense" in the current period; The lender said that the decrease is the "unrecognized financing expense" amortized (reduced) in the current period.

Major accounting treatment of unrecognized financing expenses.

1. On the commencement date of the lease period, the fixed assets leased by the enterprise shall be debited to the account of "construction in progress" or "fixed assets", the account of "long-term payables" shall be credited according to the minimum lease payment, the account of "bank deposits" and other accounts shall be credited according to the initial direct expenses incurred, and the account of "unrecognized financing expenses" shall be debited according to the difference.

The effective interest rate method is used to amortize the unrecognized financing expenses in installments, debit the accounts of "financial expenses" and "construction in progress", and credit the accounts of "travel of unrecognized financing expenses".

2. If the purchase of relevant assets exceeds the normal credit terms and the payment of the price is deferred and is essentially of a financing nature, the accounts of "fixed assets" and "construction in progress" shall be debited according to the present value of the purchase price, the account of "long-term payables" shall be credited according to the amount to be paid, and the account of "unrecognized financing expenses" shall be debited according to the difference.

The effective interest rate method is used to amortize the unrecognized financing expenses in installments, debit the accounts of "construction in progress" and "financial expenses", and credit the accounts of "unrecognized financing expenses".