Our company is engaged in real estate and tourism development, and the existing project is to build a hot spring hotel. What accounting subjects are involved in various expenses incurred during the de

Our company is engaged in real estate and tourism development, and the existing project is to build a hot spring hotel. What accounting subjects are involved in various expenses incurred during the development period? First of all, real estate development enterprises are accounted for by "projects". Whether the hot spring project and the hotel construction by land requisition are one project, you should be clear. If they are not one project, they need to be accounted separately.

1. Is the hot spring project with the hotel?

If they are together, digging wells is included in "development cost-construction cost-earthwork"

If they are not together, it depends on what they are dug for. If it is for personal use, it is counted as "construction in progress" and transferred to "fixed assets" after completion.

It can also be included in the "long-term deferred expenses" and amortized over several years.

2. Land requisition to build hotels

If the hotel is sold to the outside world after completion, it should be listed as "development cost-* * hotel project-land cost", and the design fee and survey fee should be included in "development cost-upfront cost". You can refer to the real estate accounting system.

The development cost can be put in the "inventory", and the main business cost can be carried forward according to the "unit cost" when the sales are started.

If the hotel is built for personal use, the development cost will be converted into fixed assets.