Property company amortization of start-up costs
Borrow: administrative expenses - start-up amortization
Loan: long-term amortized expenses - start-up
Management costs: refers to the business administration for the organization and management of production and business activities and the various costs incurred. Including specific items are: the board of directors and administrative departments in the business management of the enterprise, or should be borne by the enterprise company funds, labor union funds, intermediaries, consulting fees, litigation costs, business hospitality, office expenses, travel, postage and electricity, green fees, management personnel salaries and welfare costs, and so on.
Administrative expenses are period expenses and are recognized as losses or gains in the period in which they are incurred.
Long-term amortized expenses: mainly used to account for the enterprise has been spent, but the amortization period of more than 1 year (excluding 1 year) of the costs, including fixed asset repair expenditures, leased fixed asset improvement expenditures, and amortization period of more than 1 year of other amortized expenses.
Under the account of "Long-term Amortized Expenses", enterprises should set up detailed accounts according to the types of expenses, carry out detailed accounting, and disclose the amortized value, amortization period and amortization method according to the expense items in the notes to the accounting statements.
What are start-up costs?
Start-up costs, which are costs incurred to set up a joint stock company, include legal fees, promoter's fees, and the cost of obtaining a license. The company will debit these costs to an expense type account called start-up costs and will recognize these costs as an expense when they are incurred, this is because it is difficult to determine when these costs will benefit the company and how much they will benefit the company in the future.
1. Expenses of the preparatory personnel
(1) labor costs of the preparatory personnel: specifically, including the preparatory personnel's wages and bonuses and other wage expenses, as well as the various social insurance payable. Welfare expenses incurred during the preparatory period, such as medical expenses, if the preparatory period is relatively short can be charged according to the facts, the preparatory period is longer, can be based on 14% of the total wage bill to be resolved by accruing employee welfare expenses.
(2) travel expenses: including in-town transportation costs and out-of-town travel.
(3) Board of directors' fees and joint committee fees
2. Expenses for enterprise registration and notarization: mainly including registration fees, capital verification fees, tax registration fees and notarization fees.
3, the cost of raising capital: mainly refers to the handling fees paid for fund-raising, as well as exchange gains and losses not included in fixed assets and intangible assets and interest.
4, personnel training costs: mainly the following two cases
(1) the introduction of equipment and technology needs to be digested and assimilated, the cost of selecting and sending some employees to go out for further training and study during the preparatory period.
(2) Labor and related expenses for hiring experts for technical guidance and training.
5. Amortization, scrapping and destruction of business assets
6. Other expenses
(1) Office expenses, advertisement expenses, and entertainment expenses incurred during the preparation period.
(2) Stamp duty
(3) Feasibility study expenses confirmed by the investor to be borne by the enterprise
(4) Other expenses related to the preparation of the construction, such as information research, litigation costs, document printing costs, communication costs, and the cost of celebratory gifts and other expenses.