How to deal with the business of stopping amortization of prepaid expenses?

First of all, there needs to be evidence to prove that the amortization of prepaid expenses has stopped, that is, why amortization has stopped. There needs to be a statement to convince the tax authorities.

Stop amortization can transfer the balance of prepaid expenses to the period expenses (management expenses or sales expenses) at one time.

Borrow: management fee-decoration fee

Loan: prepaid expenses-renovation expenses

If it is a long-term deferred expense, it cannot be carried forward at one time. The tax law stipulates that the amortization period of long-term deferred expenses shall not be less than three years. In other words, even if the other party doesn't pay you back, the amortization period is three years.

The prepaid expenses are amortized within one year, which has no effect on the annual income tax. Long-term deferred expenses are not allowed to be amortized in advance in tax law, which has no impact on income tax. If it is expected that it will not be amortized for a long time, the expenses that should not be amortized will be restored to the income tax amount and income tax will be paid.

In short, as long as you pay or delay paying a lot of taxes, there will be no tax trouble. Accounting can be handled according to the actual situation (amortization in advance).