I. Because of the expenditure on routine maintenance activities, it cannot be charged to fixed assets. Does not meet the conditions for capitalization of subsequent measurement of fixed assets, should be expensed
Because routine repair work, is to enable fixed assets to maintain the original production capacity to continue to produce or to maintain its original ability to achieve economic benefits, and does not improve the fixed assets inherent production capacity or the ability to achieve economic benefits and the cost of expenses incurred, and such maintenance is recurrent, so It does not qualify for capitalization and cannot be capitalized and is charged to administrative expenses.
Only in the fixed assets for alteration, expansion, renewal and reconstruction, from the substantive improvement and enhancement of the fixed assets of the production capacity or the ability to achieve economic benefits of the expenditure, must be incurred in a larger amount, and is not a recurring general maintenance, which meets the conditions for capitalization of subsequent measurement of fixed assets, and therefore should be capitalized.
Second, the new enterprise accounting standards, "the enterprise production plant (department) and administrative departments to incur fixed asset repair costs and other subsequent expenditure, also accounted for as administrative expenses".
The entry when the workshop fixed asset repair costs:
Borrow: administrative expenses ?
Credit: bank deposits (to pay for the cost of hiring outside personnel to repair) ?
Employee compensation payable
Raw materials, etc. (repaired by the employees of this enterprise) ?
Production costs - auxiliary production costs, etc. (repaired by the repair shop of the enterprise)
Three, the repair of fixed assets need to distinguish between general repair and major repair, general repair is charged to the manufacturing costs, major repairs can be included in the long-term amortized expenses. But one thing to note is that the tax bureau of the tax treatment of major repairs have certain provisions, that is, major repairs need to meet certain requirements:
1, repair costs accounted for more than 50% of the value of the asset;
2, after the repair of the increase in the use of the life of the previous 2 years, or else, the funds for major repairs into the long-term amortized expenses is a tax-related risk.
Management costs class I does not account for any costs of the workshop, management costs only accounting for the company's management costs, the workshop general management costs are included in manufacturing costs.
Expanded:
Specific Items of Administrative Expenses
1. Corporate Expenses
Headquarter managers' salaries, employee benefits, travel expenses, office expenses, Board of Directors' fees, depreciation, repair, material consumption, amortization of low-value consumables and other corporate expenses;
2. Labor insurance premiums
referring to the retired employees' pensions, price subsidies, medical expenses (including the retired personnel to participate in the medical insurance fund), relocation expenses, employees' severance pay, employees' death funeral subsidies, pension payments, the provisions of the payment of retired cadres and the implementation of the social integration fund. All funds and the implementation of the social coordination fund; unemployment insurance premium refers to the enterprise in accordance with state regulations to pay the unemployment insurance fund;
3, the board of directors dues
refers to the highest authority of the enterprise and its members in order to carry out the functions of the expenses incurred, including travel expenses, meeting expenses and so on.
4, other expenses
The original tax law (repealed on January 1, 2008) stipulates that: business entertainment expenses incurred by enterprises directly related to production and operation, taxpayers can provide true and effective vouchers or information, are allowed to be expensed as an expense within the following limitations, and the portion that exceeds the standard shall not be deducted before the tax: the annual net sales (operating) income of 15 million yuan and below, shall not exceed the net sales (operating) income of 15 million yuan and below, shall not exceed the net sales (operating) income of 15 million yuan and below, and shall not be deducted before the tax. shall not exceed 5 per cent of the net sales (business); the annual net sales (business) of more than 15 million yuan, shall not exceed 3 per cent of the net sales of the part.
Now the tax law: the implementation of the regulations in Article 43 clearly stipulates that enterprises incurred in production and business activities related to business hospitality expenses, in accordance with the amount of 60% deduction, but the maximum shall not exceed the current year's sales (operating) income of 5 ‰. Sales (business) income including main business income and other business income.
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