Accounting for unrecognized financing costs that the enterprise should be phased into interest expense. It should be accounted for in detail according to the item of unrecognized financing costs.
The main accounting treatment of unrecognized financing costs:
Enterprises that purchase the assets in excess of the normal credit terms of deferred payment of the price, essentially of a financing nature, should be based on the present value of the purchase price, debited to the "fixed assets", "construction in progress ", "Intangible Assets", "Research and Development Expenditures", etc., according to the present value of the purchase price, credit "Long-term Payables", and according to the difference, debit The difference is debited to this account.
Applying the effective interest rate method to determine the interest expense for the period, debit the accounts of "finance costs", "construction in progress" and "research and development expenditures", and credit the account.
The essence of financial leasing is to achieve the purpose of financing through financing. Financial leasing company is a financial institution, can enjoy the policy treatment of the Ministry of Finance on the issuance of the "financial enterprises to withdraw provisions for doubtful debts management measures" notice:
"Financial enterprises should be at the end of each year in accordance with a certain percentage of the balance of the assets to bear the risk and loss of the general provision. And financial leasing, because it is not a financial institution, can not enjoy this policy, and if something goes wrong, it will increase the risk of repayment.
Expanded Information:
The lessee enters into a project finance lease contract with the lessor secured by the project's own property and benefits, the lessor has no recourse to the lessee's property and benefits other than the project, and the collection of rents can only be determined by the project's cash flow and benefits .
The seller (i.e., the producer of the leased item) takes this approach to marketing its products and expanding its market share through its own controlling leasing company. Communications equipment, large medical equipment, transportation equipment and even highway operating rights can be used in this way. Others include return leasing, also known as sale and leaseback financial leasing; finance-to-lease, also known as sub-financial leasing and so on.
Baidu Encyclopedia-Financial Leasing