How long is the amortization period of decoration expenses?

Generally, if the decoration cost is large, the amortization period is five years. Amortize according to the term stipulated in the lease contract. The renovation fee is amortized according to the lease contract or service life of the house. If it can be used for 5 years after renovation, it will be amortized for 60 months. If it takes several months to get the invoice, it will be amortized according to the remaining time.

1. The amortization period is determined according to the principle of shorter lease term or service life. The company amortized it for one year.

2. According to the enterprise financial accounting system, the decoration expenses incurred by enterprises in renting houses and fixed assets owned by commodity circulation enterprises by operating lease belong to long-term deferred expenses, which are amortized in installments according to the principle of shorter lease validity and longer service life.

Extended data:

According to the provisions of Article 49 of the Detailed Rules of the Tax Law, the reserve fund of an enterprise shall be amortized by installments from the second month of the month when it starts production and operation, and the amortization period shall not be less than 5 years. Land use rights should be amortized separately as intangible assets. The amortization period of intangible assets, if stipulated in the contract, shall be amortized according to the fixed period stipulated in the contract; If there is no agreement in the contract, it shall be amortized according to the period of not less than 10 year.

Article 15 of the standard stipulates: "The cost of intangible assets shall be amortized evenly within the expected service life from the month of acquisition". This article in the standard stipulates that the amortization of intangible assets adopts the straight-line method, which is single and does not conform to the principle of conservatism, and is not conducive to reducing the investment risk of intangible assets.

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