How many years should the long-term deferred expenses for decoration be amortized?

Decoration fee is a long-term prepaid fee, which can generally be amortized for five years. But in fact, according to the relevant regulations, the amortization period of decoration fees is not clearly defined. If it is the renovation fee of the leased house, it can be amortized within the remaining lease period stipulated in the contract; If the rented house is used as an office building, the renovation expenses incurred shall be amortized within the remaining lease period stipulated by the tax law. For details, please refer to the provisions of the new enterprise income tax law on the renovation expenditure of fixed assets: the renovation expenditure of rented fixed assets can be amortized during the remaining contract period.

In addition, long-term deferred expenses refer to various expenses with amortization period exceeding one year. In addition, the long-term amortization expenses cannot be fully included in the current year's business, but will be amortized in future years.

This course accounts for the expenses that have occurred in the enterprise but should be borne by the current and future periods, such as the expenditure on the improvement of fixed assets leased from operating leases.

This course should be detailed accounting according to the cost items.

The long-term prepaid expenses incurred by the enterprise shall be debited to this account and credited to such subjects as "bank deposits" and "raw materials". Amortize long-term prepaid expenses, debit "management expenses", "sales expenses" and other subjects, and credit this account.

The debit balance at the end of this course reflects the amortized value of the long-term deferred expenses that have not been amortized by the enterprise.