Should property fees be amortized?

Legal analysis: According to the current accounting standards, the prepaid expenses have been cancelled, and the expenses within one year (including one year) can be included in the expenses at one time without amortization, but the property fees can be paid directly in the current year.

Legal Basis: Accounting Standards for Business Enterprises

Thirty-third expenses refer to the total outflow of economic benefits that occurs in the daily activities of an enterprise, which will lead to the reduction of owners' rights and interests and has nothing to do with the distribution of profits to owners.

Thirty-fourth expenses can only be recognized when the economic benefits are likely to flow out, resulting in the decrease of assets or the increase of liabilities of the enterprise, and the outflow of economic benefits can be measured reliably.

Article 35 Enterprises produce products. If the expenses incurred in providing labor services can be attributed to product cost and labor cost, they shall be recognized as sales products when the product sales income and labor income are recognized. The cost of providing services is included in the current profit and loss.

If the expenses incurred by an enterprise do not generate economic benefits, or even if they can generate economic benefits, they do not meet or no longer meet the conditions for asset recognition, they shall be recognized as expenses when incurred and included in the current profits and losses.

Transactions or events that occur in an enterprise that cause it to assume liabilities but are not recognized as assets shall be recognized as expenses at the time of occurrence and included in the current profits and losses.