How to amortize deferred assets, and how to deal with deferred assets being amortized for 2 months

Deferred assets refer to various expenses that cannot be fully included in the profit or loss of the current year and should be amortized in subsequent years, including start-up expenses and improvement expenses of leased fixed assets.

The Enterprise Income Tax Law stipulates that the amortization of start-up expenses of an enterprise is as follows: the start-up expenses incurred during the preparatory period of an enterprise shall be deducted in installments within a period of not less than five years starting from the month following the month in which production and operation begin. The "preparatory period" referred to here refers to the period from the date of approval of the enterprise to the date of commencement of production and operation (including trial production and 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.

Improvement expenditure on leased fixed assets refers to all the expenses incurred in the improvement works of leased fixed assets in the form of operating leases. That is, the expenditure on modification, renovation, reconstruction, etc., in order to increase the efficiency of the use of leased fixed assets or extend their service life. This expense should be amortized as a deferred asset over the life of the fixed asset lease.

Article 31 of the Measures for the Pre-tax Deduction of Enterprise Income Tax (GSF No. 2000 084) stipulates that: "If the taxpayer's expenditure on the improvement of fixed assets has not been fully depreciated, the value of fixed assets can be increased; If the fixed asset has been fully depreciated, it can be amortised as a deferred expense over a period of not less than 5 years. "The repair of fixed assets that meet one of the following conditions shall be regarded as expenditure for the improvement of fixed assets:

1) The repair expenditure incurred reaches more than 20% of the original value of fixed assets; (2) The economic service life of the relevant assets is extended by more than two years after repair; (3) The repaired fixed assets are used for new or different purposes.

If the accounting is in line with the concept of "deferred assets", except for the improvement expenses of fixed assets, they are amortized at the beginning of production and operation. However, the tax law stipulates that it will be five years, so tax adjustments should be made every year when the final settlement is made. The last amortization of the current accounting was implemented in 2003.

Summary. Deferred assets refer to expenses that have no exchange value, are not transferable, and are consumed once incurred, but can create future earnings for the enterprise and can be offset from the accounting period of future earnings. Deferred assets also refer to expenses other than fixed assets and intangible assets that cannot be fully included in the profit or loss of the current year and should be amortized over a longer period of time in subsequent years, including start-up expenses, expenses for improvement of leased fixed assets, and long-term amortized expenses with an amortization period of more than one year.

Hello, I'm glad to answer your questions, please take a look at the question later.

Valuation of intangible assets. The valuation of intangible assets such as patent rights, proprietary technology, commercial and historical marking rights, rough search rights, and site use rights of enterprises shall be subject to the original price. Specifically:

The original price of the transferred intangible assets shall be based on the actual amount paid according to the ** of Heqing Qinli. For self-developed intangible assets, the original price is based on the actual expenditure incurred in the development process. As an intangible asset for investment, the original price shall be the reasonable ** stipulated in the agreement and contract.

Amortization of intangible leased assets. The amortization of intangible assets should be calculated using the straight-line method. These include:

If the useful life of an intangible asset as an investment or transfer is specified in the agreement or contract, it may be amortized in installments according to the useful life. For Senpai with a specified service life, or self-developed intangible assets, the amortization period shall not be less than 10 years.

Deferred assets refer to expenses that have no exchange value, are not transferable, and are consumed once incurred, but can create future earnings for the enterprise and can be offset from the accounting period of future earnings. Deferred assets also refer to expenses other than fixed assets and intangible assets that cannot be fully included in the profit or loss of the current year and should be amortized over a longer period of time in subsequent years, including start-up expenses, leased fixed and improved expenses, and long-term amortized expenses with an amortization period of more than one year.

I asked how to deal with the stalls, and what legal disputes have you encountered.

Accountants have an obligation to audit in a timely manner.

It's just an extra 2 months on the account.

Does it have an impact on the audit?

It doesn't have much of an impact.

From the point of view of our legal people.

The subjective aspect is negligence.

There are also no large losses on the objective side.

Generally, criminal responsibility will not be pursued.

Just adjust it next month!

Report the situation to your supervisor as soon as possible.

And then what? The main thing is to avoid expanding losses.

Just adjust it in a hurry!

That is true.

If the amount of fixed assets is 1 million, the deferred income obtained is 600,000, and the depreciation of Yuhui in the current period is 20,000, and the amount of amortization in the current period = 20,000 Demolition 1 million * 600,000 = 10,000.

Deferred assets are the predecessor of long-term amortized expenses, and this account is no longer used and replaced with long-term amortized expenses. There is no difference, except that the name stipulated in the old and new accounting systems has been changed.

The original system only"Deferred assets", including: start-up expenses, leased fixed assets improvement expenses, long-term amortized expenses. Subsequently, the new system did not set up a "deferred assets" account, but set up a "long-term amortized expenses" account instead.

Deferred assets are used for tax accounting, which is caused by the difference between tax regulations and accounting regulations, and does not belong to cost accounting.

The new accounting standard abolishes the long-term amortized expense account and uses "other payables" and "prepaid accounts" instead.

It's the same thing, it doesn't make a difference, because of the change in the accounting system, the deferred assets are replaced by long-term expected amortization.

Deferred income is deferred in nature and generally needs to be reasonably apportioned over a future period and recognized as income or income in installments. When an enterprise amortizes deferred earnings, how should it be accounted for?

Accounting entries for amortization of deferred income.

1. When obtaining deferred income, the accounting entries that should be made are:

Borrow: Bank deposit.

Credit: Deferred income.

2. When apportioning the income, the accounting entries that should be made are:

Debit: Deferred earnings.

Credit: Non-operating income - ** subsidy.

1) In accordance with the receipt voucher of deferred income, the following accounting treatment can be done:

Borrow: Bank deposit.

Credit: Deferred income.

2) According to the "Deferred Income Recognition and Carry-over Table", the following accounting treatment is done for the income that needs to be recognized in the current period:

Debit: Deferred earnings.

Credit: Other comprehensive income.

non-operating income, etc.

3) The profit and loss carried forward at the end of the current period shall be treated as follows:

Borrow: Other comprehensive income.

non-operating income, etc.

Credit: Profit for the year.

4) At the same time, carry forward the undistributed profits and do the following accounting treatment:

Borrow: Profit for the current year.

Credit: Profit Distribution – Undistributed Profits.

What is Deferred Income?

It refers to the income or income of the enterprise that has not yet been recognized, or it can be said to be the income that has not been recognized for the time being, and it is the specific application of the accrual system in the recognition of income. It is a liability account, which should be accounted for in detail according to the type of subsidy.

This account accounts for the amount of subsidies recognized by the enterprise according to the subsidy standard that should be included in the profit or loss of the current period in the following period. The subsidy recognized by the enterprise in the current profit or loss shall be included in other income or offset related costs and expenses in accordance with the essence of the economic business. The ** subsidy that is not related to the daily activities of the enterprise shall be included in the non-operating expenses and shall not be accounted for in this account.

Deferred means that there is a time difference, and deferred income is the income or income that has not been recognized for the time being, and it is mainly the application of accrual accounting in revenue recognition. So what should be done about the accounting treatment of deferred income amortization?

Accounting entries for the amortization of deferred earnings.

There are two steps of acquisition and distribution of deferred income, and the entries when the ** subsidy is included in the deferred income are:

1. When the deferred income is obtained, the entries are:

Borrow: Bank deposit.

Credit: Deferred income.

2. When apportioning deferred income, the entries are:

Debit: Deferred earnings.

Credit: Non-operating income - ** subsidy.

What is deferred income?

Deferred revenue refers to unrecognized revenue or gains. There are two types of deferred income, one is asset-related subsidies and the other is income-related subsidies.

Asset-related grants are grants that are obtained by the enterprise itself to construct or otherwise form long-term assets.

1) If it is used to compensate the relevant expenses or losses of the enterprise in subsequent periods, it shall be recognized as deferred income, and shall be included in the profit or loss of the current period during the period in which the relevant expenses are recognized;

2) If it is used to compensate for the relevant expenses or losses incurred by the enterprise, it shall be directly included in the profit or loss of the current branch.

Major accounting treatment of deferred income.

Debit: Other receivables.

Bank deposits. Credit: Deferred income.

Debit: Deferred earnings.

Credit: Non-operating income.

Debit: Other receivables.

Bank deposits. Credit: Deferred income.

Debit: Deferred earnings.

Credit: Non-operating income.

Debit: Deferred earnings.

Credit: Non-operating income.

Management fees. 3) When returning the ** subsidy line slag, the amount that should be returned:

Debit: Deferred earnings.

Non-operating expenses.

Credit: Bank deposits.

Other payables.

What are Deferred Assets?

Deferred assets refer to other expenses other than fixed assets and intangible assets that cannot be fully included in the profit or loss of the current year and should be amortized for a long period of time in the following years, including start-up expenses, operating lease lease fixed assets improvement expenses, fixed assets overhaul expenses, and the "major repair" items for production staff training expenses and sample prototype purchases that are not included in the construction period transferred by the construction department and are not included in the value of the delivered property.

This concept is actually quite similar to the cost to be amortized, but the difference is in the time limit. Expenses to be amortized refer to expenses that are not more than one year but more than one month. Expenses amortized over a period of one year are deferred assets.

Deferred assets are essentially the expenses that have been paid, and of course the assets should be acquired after spending the expenses, and the deferred assets are assets in this sense, and they have no entity.

Amortization is an expense that occurs in the current month and should be borne by the cost of the product in the current month and subsequent months. Amortization expenses are amortized for a maximum period of one year. If it exceeds one year, it should be accounted for as a long-term amortization.

Let's take a look at the CPA accounting book

Deferred assets mean that some expenses (start-up costs, expenses for the improvement of leased fixed assets) that allow the enterprise to benefit over an accounting period longer than one accounting period meet the definition of assets, so they are capitalized as assets. Deferred amortization is the systematic and reasonable allocation of deferred assets over the benefit allocation period, just like depreciation. Amortization of start-up costs over a period of not more than 5 years.

But the concepts of deferred assets and deferred amortization seem to be no longer in use?

In layman's terms, accrual accounting is to check whether the definition of accounting elements (assets, liabilities, income, etc.) is met according to the economic substance of the event and business, and if so, it is recognized as a record. The cash basis is a simple accounting treatment method, which is based on whether cash inflows or outflows are used as the basis to determine whether accounting treatment is necessary.

Deferred assetsIt refers to the expenses that cannot be fully included in the current profit or loss and should be amortized in subsequent years.

Typically, the deferred assets of Penitential Tomb include start-up costs.

Long-term amortization expenses before leasing fixed assets improvement and amortization period of more than one year.

Deferred assets are essentially an expense, but because the benefits of these expenses are expected to be in the future, and the amount of these expenses is large, it is a capital expenditure.

The benefit period is more than one year!