What is the reason for the high proportion of projects under construction of enterprises?

1. Increased investment;

2. Increase in assets;

3. Increase in liabilities or equity;

4. Improve production capacity;

5. Increase the ability of enterprises to resist risks.

Enterprise refers to the Enterprise Income Tax Law.

and resident enterprises and non-resident enterprises as stipulated in the implementing regulations.

Resident enterprises refer to enterprises established in accordance with the law in China, or enterprises established in accordance with the laws of a foreign country (region, Jinghonghu) but with an actual management organization in China.

Non-resident enterprises refer to enterprises established in accordance with the laws of foreign countries (regions) and whose actual management institutions are not in China, but have established institutions or places in China, or enterprises that have not established institutions or places in China, but have income in China.

Construction in progress refers to the expenditure on unfinished projects such as new construction, reconstruction and expansion of enterprise assets, or technical transformation, equipment renewal and major repair projects. There are usually two ways to "self-operate" and "outsource" for projects under construction. Self-operated projects under construction refer to projects in which enterprises purchase project materials, construct and manage them on their own; The contracted construction project refers to the project contracted by other engineering teams or units by the enterprise through the signing of a contract.

The project cost refers to the expenses incurred by the contractor in terms of labor, materials, engineering equipment, construction machinery shifts and their management that must be consumed or used in order to meet the quality standards for the implementation of the contract labor process, as well as the fees and taxes paid in accordance with the regulations.

Socialist market economy.

It is a market economy that is integrated with the basic socialist social system and embodies the fundamental nature of socialism. It is an economic system that enables the market to play a decisive role in the allocation of resources under the macroeconomic regulation and control of socialist countries.

make economic activity.

Follow the law of value.

to adapt to changes in supply and demand; Through the best leverage and competition mechanism, the allocation of resources to the best efficiency of the link, and the implementation of the survival of the fittest; The market is sensitive to various economic signals to promote the timely coordination of production and demand.

It will cause a decrease in assets, a decrease in inputs, an increase in liabilities, and a reduction in production capacity. 1.It will make the start of the construction in progress and the final cost very different.

2.The construction in progress will eventually be transferred to fixed assets, and the reduction of projects will inevitably shrink the fixed assets. 3.

Reduction in liabilities or equity. Funds for projects under construction** are nothing more than liabilities or investments. 4.

The construction in progress is generally directly related to the expansion of the production capacity of the enterprise, and the expansion of the capacity will bring about an increase in income, and on the contrary, the increase in losses will decrease. However, there is also a vicious circle in which the expansion of blind regret breaks the capital chain of enterprises.

It will lead to an increase in assets, an increase in input, an increase in liabilities or equity, and an increase in production capacity.

1.It will make the start of the project under construction and the final cost far from the final cost, and it is difficult to have a "turning back arrow" when the project starts, so it can only be "recognized" head-on.

2.The Hungry Oak project under construction will eventually be transferred to fixed assets, and the growth of the project will inevitably increase the cost of fixed limb size assets.

3.Increase in liabilities or equity. The funds of projects under construction** are nothing more than liabilities or investments, and when assets are grown, liabilities or equity will inevitably be driven.

4.The construction in progress is generally directly related to the expansion of the production capacity of the enterprise, and the expansion of the capacity will bring about an increase in revenue. However, there is also a vicious circle of blind expansion that breaks the capital chain of enterprises.

Summary. Dear, good afternoon boss, this is not necessarily. The significant increase in construction in progress indicates that the company has invested in many projects.

If the investment is successful, the return should be considerable. But if the returns are not very good and the investment is not very successful, then it is also possible to lose money. Therefore, it cannot be judged from the change in the amount of construction in progress alone, and this formula enterprise is stable operation.

There are other factors that should be taken into account.

It was found that the proportion of construction in progress to total assets has increased significantly compared with before, what situation may the company face.

Hello, I am the official cooperative tutor of Q&A, I am honored to answer your questions, please wait for a while, I will analyze your questions in detail and give you real-time answers, please remember to give a thumbs up later, thank you very much [looking forward to digging a branch] <>

Make a fierce nuclear shake]!!

Dear, good afternoon boss, this is not necessarily slow. The significant increase in construction in progress indicates that the company has invested in many projects built by Bijixian. If the investment is successful, the return should be considerable.

But if the returns are not very good and the investment is not very successful, then it is also possible to lose money. Therefore, it cannot be judged from the change in the amount of construction in progress alone, and this formula enterprise is stable operation. There are other factors that should be taken into account.

The proportion of projects under construction needs to look at different industries, and then subdivided, and some enterprises do not have construction projects. Besides, in this project in progress subject is very important is the real estate construction industry is boring, you can look at the data on the financial statements of major real estate companies, there is a specific amount of dust per mu, take Poly as an example: The 2019 annual report of the project under construction is 100 million, and the total assets are 1,148 billion, accounting for 1,148 billion.

I hope the above is helpful to you If you are satisfied with me, please give me a thumbs up