When does amortization of long-term amortized expenses begin? How many years of amortization?

General business fixed asset repair expenditures, leasehold fixed asset improvement expenditures, etc., through the long-term amortized expense accounting. Long-term amortized expenses are amortized in the current month or the following month? Amortization period is how to stipulate? On the above questions, this article will provide detailed answers.

How to amortize long-term amortized expenses?

According to the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China, long-term amortized expenses shall be amortized over a period of not less than three years from the month following the month in which the expenses are incurred.

According to the relevant provisions of the Enterprise Accounting System: long-term amortized expenses shall be separately accounted for and amortized in equal installments over the beneficial period of the expense items. If major repair costs are to be amortized, the major repair costs incurred should be amortized equally before the next major repair; leasehold fixed asset improvement expenditures should be amortized equally over the shorter of the lease term and the useful life of the leased asset; and other long-term amortized costs should be amortized equally over the benefit period.

The balance of fees or commissions and other related expenses paid by a joint stock limited company entrusted to other entities to issue shares, less the interest income during the period of stock issuance freeze, which is not sufficient to offset from the premium of stock issuance, or if there is no premium, if the amount is small, it shall be directly charged to the profit and loss of the current period; if the amount is large, it may be regarded as a longterm amortization expense, and amortized evenly over the period not exceeding 2 years, and charged to the Profit and loss.

Except for the purchase and construction of fixed assets, all expenses incurred during the preparatory period are firstly summarized in long-term amortized expenses, and then charged to profit and loss in the month of commencement of production and operation at one time from the month of commencement of production and operation.

If a long-term amortized expense item cannot be benefited in a future accounting period, the amortized value of the item that has not yet been amortized shall be transferred to the current profit and loss.

The main characteristics of long-term amortized expenses

1, long-term amortized expenses belong to long-term assets;

2, long-term amortized expenses are the expenses that have been expended by the enterprise;

3, long-term amortized expenses should be able to benefit the subsequent accounting period.