How to amortize the cost of hotel interior decoration?

1. The decoration of a single box can be directly included in the current profit and loss, the overall decoration can be included in the long-term deferred expenses, and the shorter one can be amortized according to the operating period and service period.

2. Amortization refers to the accounting treatment of allocating the purchase cost of other long-term operational assets according to their service life, which is similar to the depreciation of fixed assets. Amortization expenses are included in management expenses, which reduces current profits, but has no effect on operating cash flow. Common amortized assets, such as large-scale software, intangible assets such as land use rights and start-up expenses, can contribute to the company's business and income for a long time, so it is reasonable to allocate its acquisition cost to each year.

3. Amortization period generally does not exceed 65,438+00 years. Like depreciation, intangible assets can be amortized by straight-line method and accelerated method. In terms of the amount, in general, the amortization expense is far less than the depreciation expense, that is to say, the fixed assets of most companies are far greater than the intangible assets, so amortization and depreciation are generally disclosed together without distinction.