How to amortize the start up fee, and do the start up costs still need to be amortized

If your unit implements the new accounting standards, the expenses incurred during the preparation period can be directly included in the "management expenses and start-up expenses" account.

If your unit does not implement the new accounting standards, the expenses incurred during the preparation period can be included in the "long-term amortized expenses start-up expenses" account.

The previous accounting implementation of the new accounting standards one-time carry-forward "borrowed" management expenses a start-up expenses, he has been entries perfected.

The new accounting standards stipulate that once the start-up fee is determined, it cannot be changed at will.

If you make changes, the accounting entries for the amortization from September to December will be forgotten, and you will be transferred out of the "Long-term Amortized Expenses Start-up Expenses" account. , the balance of this account is transferred out in the entry "borrowing" administrative expenses a start-up fee.

It is recommended that you do not change it and do something troublesome on your own. The new accounting standards stipulate that from January 1, 2009, the start-up expenses shall be disbursed and no final income tax adjustment shall be made.

The accounting treatment of start-up expenses is to carry forward the current expenses in a lump sum at the time of formal operation. The tax is amortized over five years until January 1, 2009, so there will be a time difference between accounting and taxation. After January 1, 2009, the tax can also recognize the one-time carry-forward of the start-up fee, so your company's accounting treatment must be a one-time carry-forward expense, and there is no difference with the tax now.

[Legal Analysis].Except for the acquisition and construction of fixed assets, all expenses incurred during the preparation period shall be collected in the long-term amortized expenses first, and shall be included in the profit or loss of the month of commencement of production and operation from the month in which the enterprise starts production and operation. If the long-term amortized expense item of the enterprise cannot benefit the subsequent accounting period, the amortized value of the item that has not yet been amortized shall be transferred to the profit or loss of the current period.

[Legal basis]."Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Enterprise Income Tax" Article 34 The start-up expenses incurred by an enterprise in preparation for establishment shall be deducted in installments within a period of not less than 5 years starting from the month following the month in which production and operation begins. The preparatory period mentioned in the preceding paragraph refers to the period from the date on which the enterprise is approved to prepare for establishment to the date of commencement of production and operation (including trial production and trial operation). Start-up expenses refer to the expenses incurred by the enterprise during the preparatory period, including staff salaries, office expenses, training expenses, travel expenses, printing expenses, registration fees, and foreign exchange gains and losses and interest that are not included in the cost of fixed assets and intangible assets.

The amortization of start-up expenses refers to the one-time amortization of the town, that is, the management expenses of the current period are recorded in a lump sum in the month when production and operation begin. According to the new regulations:

1. Under the new standard, the start-up expenses are accounted for in the management expense account and are directly included in the current profit and loss, and are no longer long-term amortized expenses or deferred assets, and the accounting scope of the start-up expenses includes the remuneration of the organizers, office expenses, training expenses, travel expenses, printing expenses, registration fees, and borrowing expenses that are not included in the cost of fixed assets.

2. The tax treatment of start-up expenses under the new tax law is consistent with the new accounting standards, that is, the one-time pre-tax deduction of start-up expenses for the current period is no longer separated, and the two are harmonized, and there is no difference between accounting and taxation in terms of start-up expenses in the future, and of course, there is no tax adjustment.

When accounting for the amortization of start-up expenses, the amortization time is based on the income obtained from the first invoice. Except for the purchase and construction of fixed assets, all expenses incurred during the preparatory period should be collected in the long-term amortized expenses, and shall be included in the profit or loss of the month in which the enterprise starts production and operation from the month in which it starts production and operation. Start-up expenses refer to the expenses incurred by an enterprise from the date of approval of the establishment of the enterprise to the date of commencement of production and operation (including trial production and trial operation) (i.e., the preparatory period).

It includes staff salaries, office expenses, training expenses, travel expenses, printing costs, registration fees, exchange gains and losses excluding the acquisition cost of fixed assets and intangible assets, and interest expenses.

Accounting System for Business Enterprises (Cai Kuai [2000] No. 25) Article 50 Other assets refer to assets other than those mentioned above, such as 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 one year (excluding one year), including expenses for major repairs of fixed assets and improvement expenses for leased fixed assets. 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 shall be accounted for separately and amortized in equal installments during the benefit period of the expense item. If the major repair cost is amortized, the major repair cost shall be amortized evenly before the next major repair; The expenses for the improvement of leased fixed assets shall be amortized equally over the shorter period of the lease term and the remaining useful life of the leased assets; Other long-term amortized expenses shall be amortized evenly over the benefit period. The handling fee or commission and other related expenses paid by the shares entrusted to other units for issuance, minus the interest income during the freezing period of the transfer, are not enough to offset from the premium of the issuance, or if there is no premium, if the amount is small, it will be directly included in the profit or loss for the current period; If the amount is large, it can be amortized as a long-term amortized expense and amortized evenly over a period of no more than 2 years, and included in profit or loss.

Except for the acquisition and construction of fixed assets, all expenses incurred during the preparation period shall be collected in the long-term amortized expenses first, and shall be included in the profit or loss of the month of commencement of production and operation from the month in which the enterprise starts production and operation. If the long-term amortized expense item cannot benefit the subsequent accounting period, the amortized value of the item that has not yet been amortized shall be transferred to the profit or loss of the current period.