How to deal with the accounting and expenses incurred during the hotel renovation?

The accounting treatment of hotel decoration expenses can be divided into two situations:

1. The property of the hotel belongs to itself. Enter the project under construction during the renovation, and transfer to fixed assets after renovation, such as:

During the renovation?

Borrow: Construction in progress.

Loan: bank deposit or cash.

Is the decoration finished?

Borrow: fixed assets

Loan: Construction in progress.

2. If the hotel is operating and leasing, it can be subdivided into two situations for accounting treatment;

(1) If the renovation project is huge and the renovation cost is huge, depreciation shall be accrued according to the shorter lease period or service life;

During the renovation,

Borrow: Construction in progress.

Loan: bank deposit or cash.

Is the decoration finished?

Borrow: fixed assets

Loan: Construction in progress.

(2) If the decoration project is not large, enter the subject of "long-term deferred expenses";

Borrow: Long-term deferred expenses

Loan: bank deposit or cash.

Finally, after the hotel is renovated, in the first month of operation, the long-term prepaid expenses will be carried forward to the organization expenses under the management expenses at one time;

Borrow: management fee-organization fee

Loan: Long-term deferred expenses

Generally speaking, hotel decoration is the above situation, and different accounting treatment methods can be selected according to the assets of the hotel.

Extended data:

From the point of view of purchasing fixed assets with input tax deducted from value-added tax, fixed assets refer to:

1. Machines, machinery, means of transport and other production-related equipment, tools and appliances with a service life of more than one fiscal year.

2, the use of more than 2 years does not belong to the production and operation of the main equipment items. (In 2007, the new accounting standards removed the restriction on the confirmed value of fixed assets. As long as the company thinks it can and its service life exceeds one fiscal year, it can be recognized as fixed assets and depreciated according to a certain depreciation method. )

3. Long service life.

4. The unit value is large.

The provisions here are smaller than those in the Accounting Standards for Business Enterprises, mainly excluding real estate such as houses and buildings, because the sales of houses and buildings pay business tax and do not pay value-added tax.

The English-Chinese Dictionary of Securities Investment by the Commercial Press explains: fixed assets. Name. Commonly used plural. The tangible assets with a long life cycle used by the company are fixed assets, such as factories and machines. These assets usually cannot be converted into cash immediately, but the company can withdraw depreciation every year according to accounting and tax regulations.

Baidu encyclopedia-fixed assets