organization expenses refer to the expenses incurred by an enterprise during the period from the date when the enterprise approves the establishment to the date when it starts production and operation (including trial production and trial operation) (i.e. the establishment period). Including staff salaries, office expenses, training fees, travel expenses, printing fees, registration fees and exchange gains and losses and interest expenses that are not included in the acquisition and construction costs of fixed assets and intangible assets.

the preparation period refers to the period from the date when an enterprise is approved for preparation to the date when it starts production and operation (including trial production and trial operation).

Scope of expenses of organization expenses

(1) Specific contents of organization expenses

1, expenses of preparation personnel

(1) Labor expenses of preparation personnel: specifically including salary expenses such as salaries and bonuses of preparation personnel, and various social insurances that should be paid. Welfare expenses, such as medical expenses, incurred during the preparation period can be truthfully charged if the preparation period is short, and employee welfare expenses can be accrued at 1.4% of the total wages if the preparation period is long.

(2) Travel expenses: including local transportation expenses and travel expenses from other places.

(3) Directors' dues and joint committee dues

2. Expenses for enterprise registration and notarization: mainly including registration fees, capital verification fees, tax registration fees and notarization fees.

3, the cost of raising capital: mainly refers to the handling fee paid by raising funds and the exchange gains and losses and interest that are not included in fixed assets and intangible assets.

4. Personnel training fees: There are mainly the following two situations

(1) The expenses for importing equipment and technology to be digested and absorbed, and sending some employees to study abroad during the preparation period.

(2) the labor costs and related expenses for hiring experts for technical guidance and training.

5. Amortization, scrapping and damage of enterprise assets

6. Other expenses

(1) Office expenses, advertising expenses and social entertainment expenses incurred during the preparation period.

(2) stamp duty

(3) expenses incurred by the enterprise in conducting the feasibility study confirmed by investors

(4) other expenses related to the preparation, such as information investigation fees, legal fees, document printing fees, communication fees and celebration gifts.

(2) Expenditure not included in the scope of organization expenses

1, and expenses incurred in acquiring various assets. Including the transportation fees, installation fees, insurance fees and related labor costs incurred during the purchase and construction of fixed assets and intangible assets.

2. stipulate the expenses that should be borne by all investors. Such as travel expenses, consulting fees, entertainment expenses, etc. incurred by the investors in conducting investigation and negotiation for the establishment of the enterprise. The Chinese government also stipulates that the entertainment expenses incurred by asking foreign businessmen to negotiate business during Sino-foreign joint venture negotiations shall not be listed as enterprise start-up expenses, and shall be borne by the inviting enterprises.

3. Expenditure on fixed assets and intangible assets purchased and built for training employees shall not be listed as organization expenses.

4. The interest paid by the investor for raising funds by himself by investing capital shall be included in the start-up expenses and shall be borne by the investor himself.

5. The handling fee paid by depositing foreign currency cash in the bank shall be borne by the investor.

(III) Determination of the preparation period

The determination of the preparation period of an enterprise is greatly influenced by the tax law in China. For example, the Detailed Rules for the Implementation of the Foreign-funded Income Tax Law stipulates that "the preparation period of a foreign-funded enterprise is from the date when the enterprise is approved for preparation to the date when it starts production and operation (including trial production)". The above-mentioned "date of approval for preparation" specifically refers to the date after the investment agreement signed by the enterprise and the date when the contract is approved by the Chinese government. The above-mentioned "date of starting production and operation (including trial production)" specifically refers to the end of the enterprise preparation period from the date when the enterprise equipment starts to operate, and the products are started to be manufactured or the same first commodity is sold. Other enterprises can refer to this provision.

(4) The start-up expenses are generally amortized in five years, and the new enterprise accounting system stipulates that the start-up expenses should be amortized once.

Accounting treatment of the start-up expenses

The Accounting System for Enterprises (No.25 [2111] of the Ministry of Finance) has made major adjustments to the amortization period of the start-up expenses. According to the original industry accounting system, the start-up expenses incurred by an enterprise should be amortized in equal installments within a period of no more than five years from the month of production and operation. Article 51 of the Accounting System for Enterprises stipulates: "Except for the purchase and construction of fixed assets, all expenses incurred during the preparation period shall be collected in the long-term deferred expenses first, and shall be included in the profit and loss of the month when the enterprise starts production and operation. If the expense item that the enterprise manager expects to amortize cannot benefit the future accounting period, all the amortized value of the item that has not been amortized shall be transferred to the current profit and loss. " It can be seen that the accounting treatment of organization expenses, no matter from the setting of accounting subjects or the amortization period, has changed greatly from the original industry financial system. This new regulation is quite different from the current income tax laws and regulations. Article 34 of the Detailed Rules for the Implementation of the Provisional Regulations on Enterprise Income Tax stipulates that the start-up expenses incurred by an enterprise during the preparation period shall be deducted by stages within a period of not less than five years from the month following the month when it starts production and operation. Therefore, the one-time amortization start-up expenses of an enterprise in the month of production and operation should be deducted in five years from the next month of production and operation. When taxpayers declare income tax at the end of the year, they should do a good job in tax adjustment, and establish a "pre-tax deduction ledger for start-up expenses" or a reference register to lay a good foundation for accurate declaration of pre-tax deduction (reduction) in future years.

For example, a joint-stock company started production and operation in July 2111, and the initial expenses incurred in the previous period totaled 961,111 yuan. When the initial expenses were amortized in July, the accounting entries were as follows:

Debit: management expenses-amortization of initial expenses of 961,111 yuan

Loan: long-term deferred expenses-initial expenses of 961,111 yuan

Allowable pre-tax deduction for this year =

from 2112 to 2115, the annual income should be reduced = 96 ÷ 5 = 19.2 (ten thousand yuan);

the income to be reduced in 2116 = 961,111 yuan ÷5 years ÷12 months ×7 months = 11.2 (ten thousand yuan).

The ledger for tax adjustment of start-up expenses is set as follows:

Pre-tax deduction ledger for start-up expenses

Unit: 11,111 yuan

Description of the ledger:

1. Year: amortization date, which refers to the year and month when production and operation started, and so on in the following years.

2. Accounting amortization amount: refers to the total amount of start-up expenses amortized once in accounting.

3. Tax deduction: refers to the amount allowed to be deducted before tax in this year according to the provisions of the tax law.

4. tax adjustment amount: tax adjustment amount = accounting amortization amount-pre-tax deduction amount. The result is that the positive number is the increased income and the negative number is the decreased income.

5. Amount not deducted: refers to the amount allowed to be deducted before tax in future years. The amount that has not been deducted in the first year is filled in according to the tax adjustment of this year, and the amount that has not been deducted in subsequent years = the amount that has not been deducted in the previous period-the pre-tax deduction of this year.

accounting of start-up expenses

start-up expenses refer to the expenses incurred by an enterprise during the preparation period, including staff salaries, office expenses, training fees, travel expenses, printing fees, registration fees and exchange gains and losses and interest expenses that are not included in the purchase and construction costs of fixed assets and intangible assets. The preparation period refers to the period from the date when the enterprise is approved to start production and operation (including trial production and trial operation).

The following expenses incurred by an enterprise shall not be included in the start-up expenses:

(1) Expenses borne by investors;

(2) expenditures incurred from the acquisition of various fixed assets and intangible assets;

(3) Exchange gains and losses, interest expenses, etc. of the asset value should be included in the preparation period.

The Accounting System for Enterprises (No.25 [2111] of the Ministry of Finance) has made significant adjustments to the amortization period of the organization expenses. According to the original industry accounting system, the start-up expenses incurred by an enterprise should be amortized in equal installments within a period of no more than five years from the month of production and operation. Article 51 of the Accounting System for Enterprises stipulates: "Except for the purchase and construction of fixed assets, all expenses incurred during the preparation period shall be collected in the long-term deferred expenses first, and shall be included in the profit and loss of the month when the enterprise starts production and operation. If the expense item that the enterprise manager expects to amortize cannot benefit the future accounting period, all the amortized value of the item that has not been amortized shall be transferred to the current profit and loss. " It can be seen that the accounting treatment of organization expenses, no matter from the setting of accounting subjects or the amortization period, has changed greatly from the original industry financial system. This new regulation is quite different from the current income tax laws and regulations. * * * Learn together!