What does the property start-up fee include?

Including staff salaries, office expenses, training fees, travel expenses, printing fees, data preparation and printing fees, renovation fees of property office space, purchase fees of property office furniture, etc. Registration fees, exchange gains and losses and interest expenses are not included in the purchase and construction costs of fixed assets and intangible assets.

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1. Introduction:

Property start-up expenses refer to the expenses incurred by the enterprise during the preparation period, which refers to the period from the date when the enterprise is approved to start production and operation.

2. Organization expenses:

Also known as establishment expenses, it refers to the expenses incurred in establishing a joint-stock company, including legal fees, sponsors' fees and fees for obtaining licenses. The company will debit these expenses to an expense account called organization expenses and confirm them as expenses when they occur, because it is difficult to determine when these expenses will bring benefits to the company and how much benefits they will bring to the company in the future.

3. Deduction method:

The start-up expenses incurred by an enterprise during the preparation period shall be deducted by stages within a period of not less than 5 years from the second month of the month in which production and operation began. The start-up expenses are generally amortized for five years, and the new enterprise accounting system stipulates that the start-up expenses should be amortized once.