It can be seen that the "long-term deferred expenses" account accounts for expenses with an amortization period of more than one year, and the "Enterprise Accounting System" stipulates that all expenses incurred during the preparation period shall be included in the account at once starting from the month when the enterprise starts production and operations. The profit and loss in the month when production and operations begin is one-time amortization, and the amortization period does not exceed one year. However, it stipulates that it be aggregated and accounted for in the "long-term deferred expenses" account, which is different from the "long-term deferred expenses" account. The accounting contents are contradictory. This may be caused by the continuation of the original accounting system's requirement that the amortization period of start-up expenses be no less than 5 years and be accounted for in the "long-term deferred expenses" account. The author believes that for the start-up expenses during the preparation period of the enterprise, since it is stipulated that they should be included in the profit and loss of the month when the enterprise starts production and operation, they should be accounted for in the "prepaid expenses" account, or Set up a separate first-level account for "start-up expenses" for accounting, and should not account for it in the "long-term deferred expenses" account.
Through the above analysis, it can be seen that the provisions of the "Enterprise Accounting System" on the accounting treatment during the preparation period of the enterprise need to be modified and improved. Whether the accounting treatment of expenses incurred during the preparation period of the enterprise is correct will not only affect the profit and loss of the month when the enterprise starts production and operation, but also affect the recorded value of the enterprise's relevant assets and the profit and loss in subsequent periods, especially for some projects with a long preparation period or large preparation expenses. The impact on enterprises will be greater, which is what accounting system developers and accounting practitioners should focus on.