Common long-term amortization expenses include:
1. Depreciation expense: refers to the value lost by fixed assets during their service life, which can be divided into various methods, such as straight-line depreciation method, multiple depreciation method and impairment balance method.
2. Amortization expenses: refers to the expenses incurred in the use of intangible assets or low-value long-term assets, such as patents, trademarks, copyrights, etc. ; It also includes long-term prepaid expenses, such as advertising fees and research and development fees.
3. Accrual of impairment expenses: refers to financial expenses incurred due to asset losses, such as fixed asset hedging loss expenses and inventory depreciation reserves.
4. Long-term employee welfare funds: refers to the employee welfare funds that the company needs to pay in the next few years, such as pension and medical insurance.
5. Asset scrapping loss: refers to the loss that an asset can no longer be used for production or service after reaching the specified service life, or for similar other reasons.
Enterprises need to plan and allocate long-term amortization expenses reasonably, not only to ensure compliance with accounting standards and regulations, but also to make rational use of financial expenses to improve economic benefits and bring better financial performance.
In addition, long-term amortization expense is also one of the important indicators in enterprise financial analysis. In the process of enterprise performance evaluation and risk analysis, it is necessary to deeply analyze the specific indicators of long-term amortization expenses, such as depreciation methods, asset impairment and welfare expenses, to understand their impact on the financial situation and business activities of enterprises. Through scientific and reasonable planning and management of long-term amortization expenses, enterprises can improve financial quality and effectively control risks, and ensure the healthy development and long-term interests of enterprises.
At the same time, long-term amortization expenses also play an important role in enterprise investment decision. When investing in long-term assets, enterprises need to consider the related factors of depreciation and amortization expenses, and evaluate the rate of return of long-term assets to determine whether it meets the long-term development strategy and profit target of enterprises.
Long-term amortization expenses not only affect the internal operation and investment decision of enterprises, but also have great significance for financial reporting and auditing of enterprises. Enterprises must reasonably calculate and disclose long-term prepaid expenses in accordance with relevant accounting standards and laws and regulations, and accept the audit and confirmation of independent audit institutions to ensure the truthfulness, accuracy and completeness of the company's financial statements.
To sum up, long-term prepaid expenses play an indispensable role in enterprise financial management, which is related to asset management, risk control, investment decision-making and financial reporting. Enterprises should pay attention to strengthening management and control in order to achieve comprehensive and benign development.