How to use the long-term prepaid expense account?

Long-term prepaid expense accounts need to be amortized into costs or expenses. The specific use method is as follows:

1. Determine the items and amount of long-term deferred expenses. Usually, long-term prepaid expenses include intangible assets such as patent right, copyright, trademark right, prepaid rent and advertising fee. , the specific amount needs to be determined when the enterprise actually spends.

2. According to the actual situation of long-term deferred expenses and the requirements of accounting standards, calculate the amortization quantity or amount that should be apportioned in each accounting period. Usually, the calculation method of amortization quantity or amount of different projects will be different.

3. The amortization amount or amount to be apportioned in each accounting period shall be included in the corresponding cost or expense items respectively. At the end of each accounting period, adjustments need to be made to make the amortized amount consistent with the actually calculated amount.

4. For amortized items, impairment test is required when depreciation or amortization is accrued to ensure that its value has not changed significantly.

Pay attention to the realization of using long-term deferred expenses

1. Select the correct expense items: Long-term deferred expense items are applicable to those long-term expenses whose contribution to income cannot be confirmed immediately, such as patent right, copyright right and trademark right. When selecting expense items, it is necessary to ensure that the long-term expected conditions and requirements are met, otherwise it may lead to incorrect accounting treatment.

2. Reasonable amortization period: The amortization period of long-term deferred expenses is usually determined according to the relevant standards, and various factors need to be comprehensively considered, such as the amount of expenses, the service life of assets, market changes and other factors. When determining the amortization period, it is necessary to make full estimation and prediction to ensure that the amount allocated conforms to the actual situation.

3. Accurately calculate the amortization amount of each period: for each long-term deferred expense item, the amortization amount should be calculated, and factors including asset residual value and annual depreciation rate should be fully considered to ensure that the amortization amount is reasonable and accurate.