Long-term amortized expenses are presented in the balance sheet.
1. Definition of long-term amortized 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 respectively, and the amortization period is more than one year. These expenses include, but are not limited to, expenses for the improvement of leased fixed assets and land, major repairs of fixed assets, purchase of stamps**, purchase of title certificates, etc.
2. Presentation of long-term amortized expenses in the balance sheet.
1.List the location.
Long-term amortized expenses are usually listed in the balance sheet under "Long-term amortized expenses" under "Non-current assets".
2.How to list.
Long-term amortized expenses are usually presented in the form of debit balances, which represent the long-term amortized expenses that have not yet been amortized. If the business has a debit balance, it means that the business still has unamortized long-term amortized expenses; If the business does not have a debit balance, it means that the business has amortized all long-term amortized expenses.
3. Amortization of long-term amortized expenses.
Long-term amortized expenses shall be amortized annually in a certain manner within the prescribed amortization period. For example, the improvement expenses of leased fixed assets should be amortized within a reasonable period of time during the lease period; For major repair expenses of fixed assets, amortization shall be made during the repair interval; Expenses such as the purchase of stamps** and the purchase of title certificates shall be amortized during the benefit period.
4. Accounting treatment of long-term amortized expenses.
1.In the event of a long-term amortized expense:
Borrow: Long-term amortized expenses.
Credit: bank deposits, etc.
2.When amortization is made in accordance with the prescribed amortization period and method:
Borrow: management fees, etc.
Credit: Long-term amortized expenses.
5. Precautions for long-term amortized expenses.
1.The recognition and measurement of long-term amortized expenses shall comply with the provisions of accounting standards and shall not be adjusted or changed at will.
2.The presentation of long-term amortized expenses should be clear and easy to understand.
3.Major repair costs that have been included in the value of fixed assets shall not be included in the long-term amortized expenses.
4.Stamp duty and other expenses that have been included in the management expenses shall not be included in the long-term amortized expenses.
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