Generally, the expenses that can be included in the long-term prepaid expenses include but are not limited to the following:
1. R&D expenses:
All kinds of expenses incurred in the process of product development by enterprises, such as patent application fees, trial production fees, experimental inspection fees, etc.
2. advertising expenses:
expenses incurred by enterprises in advertising, such as advertising design and production expenses, media exchange expenses, market research expenses, etc.
3. Loan interest:
Interest expenses incurred by enterprises in financing through loans, etc.
4. Project construction cost:
Expenses incurred by enterprises in building and infrastructure construction, such as engineering survey fee, design fee, building installation fee, etc.
5. Business license and other formalities:
Expenses incurred by enterprises in obtaining business licenses and administrative examination and approval.
Long-term deferred expenses refer to the expenses incurred by an enterprise to acquire or create intangible assets, long-term assets or assets in the early stage of production, which are included in the current profits and losses by stages according to a certain period.
it should be noted that the situation of different enterprises may be different, and the specific judgment and treatment should be made according to the actual situation and the provisions of relevant accounting standards.
Long-term deferred expenses are expenses incurred by an enterprise in the early stage of asset production or in order to create intangible assets and long-term assets, and are included in the current profits and losses by stages according to a certain period.
these expenses are usually considered as a means to realize long-term benefits, so they can't be charged as current expenses immediately, but need to be apportioned in the future. This can not only reflect the real economic situation of the enterprise, but also help to clarify the occurrence time and duration of economic benefits, so as to better realize cost accounting and business decision.
Long-term prepaid expenses will have a certain impact on the financial statements of enterprises, for example, it will reduce current profits and increase expenses in the next few periods, thus reducing the business risk and financial stability of enterprises. In addition, if the future income is not as good as expected, the enterprise needs to make adjustments according to specific regulations, such as amortization in advance or provision for impairment, so as to avoid excessive losses to the enterprise.
due to the complexity of long-term deferred expenses and flexible specific provisions, enterprises need to be cautious when dealing with such expenses, classify, estimate, allocate and confirm them according to relevant accounting standards, and make timely adjustments. In addition, in practice, we need to pay attention to the corresponding accounting methods and procedures to ensure the accuracy and transparency of information to meet the requirements of accounting supervision departments and investors.