How to install smart locks in hotels?

The installation of smart locks in hotels can be included in the long-term prepaid expenses.

The expense amount of long-term deferred expense accounting is generally attached to other assets and has no obvious independent asset attribute. However, because the attached assets do not have ownership, and the assets have been fully depreciated, the related expenses cannot be capitalized and included in the related assets, and the income of these expenses exceeds one year, which is suitable for being fully included in the current profit and loss. Therefore, hotels can include long-term prepaid expenses by installing smart locks.

Related items include:

1, reconstruction expenditure:

Borrow: Long-term prepaid expenses.

Loans: bank deposits/raw materials, etc.

2. Amortization by installments:

Borrow: management expenses/sales expenses/manufacturing expenses, etc.

Loan: Long-term deferred expenses.

The ownership of the leased fixed assets does not belong to the enterprise and cannot be capitalized and included in the fixed assets. Only "long-term deferred expenses" can be set to be amortized within the remaining lease period stipulated in the lease contract.