How To Deal With The Balance Of Start-Up Cost Amortization

A company opened in July 1999 and the start-up cost was 1 million 200 thousand yuan, which was amortized for 5 years. As of December 2000, the cost of amortization was 360 thousand yuan.

In accordance with the provisions of the enterprise accounting system, the starting expenses for an enterprise shall be collected in the long term prepaid expenses. Once the enterprise starts production and operation, it will be counted as the profit and loss in the first month of production and operation.

May I ask if the company's outstanding amortization expenses of 840 thousand yuan should be sold at a time in January 2001? If a one-time amortization is made, how to make tax adjustment when reporting income tax? [2001]43: the company's accounting fees for outstanding business expenses should be dealt with according to the following circumstances: 1. if the balance of the non amortized start-up expenses is larger, the direct pfer of its balance to the profits and losses of the current period will have a significant impact on the profits of the company, which can be handled by the retrospective adjustment method.

When compiling the comparative accounting statements, we should adjust the net profit and loss items and other related items in the accounting period during the comparison of accounting statements, which is regarded as the same policy during the comparison of accounting statements.

2. if the balance of the cost of the non amortized start-up is smaller, the direct pfer of its balance to the profits and losses of the current period will not have a significant impact on the profits of the company. The balance of the start-up cost can be pferred directly to the profits and losses of the current period.

Enterprises can choose one way to deal with the profits according to the above provisions.

The current tax law stipulates that the start-up cost of an enterprise should be deducted in stages not less than 5 years from the next month of production and operation.

The starting expenses for deducting the expenses in 2001 were 240 thousand yuan. When declaring the enterprise income tax this year, we should increase the amount of taxable income and pay the enterprise income tax in the part of the "management fee" subject that the amortization amount exceeds 240 thousand yuan this year.