When a foreign construction enterprise carries out construction abroad, the interest income during the construction period is included in the financial expenses. Use negative numbers to offset financial expenses.
For real estate development enterprises, the interest income during the construction period is included in the development cost account, and the development cost is reduced by a negative number.
If all loans are capital loans, that is, for projects under construction, they are included in the projects under construction. If an enterprise is building and producing at the same time, some funds may be used for working capital, which will be included in the current financial expenses and cannot be capitalized.
Interest on special loans offsets the cost of projects under construction.
If the loan is not specifically used for the project, but only a general loan, then the interest income is included in the financial expenses.
Of course, this financial expense is subject to corporate income tax.
Extended data:
First, this course accounts for the value of capital construction, technological transformation and other projects under construction of enterprises.
Follow-up expenses related to the fixed assets of the enterprise include daily repair expenses, major repair expenses, decoration expenses, house decoration expenses, etc. , in line with the "fixed assets standards" provisions of the conditions for the recognition of fixed assets, but also in this account; Do not meet the conditions for the confirmation of fixed assets, should be in the "management expenses" accounting, not in this account.
Two, this course should be in accordance with the "construction", "installation", "installation of equipment", "prepaid expenses" and other single projects for detailed accounting.
If the construction in progress is impaired, the detailed account of "impairment provision" should be set in this account for accounting.
Third, the debit balance at the end of the undergraduate project reflects the value of the unfinished construction in progress of the enterprise.
Baidu Encyclopedia-Project under Construction