This issue needs to consider two points, one is to implement the accounting standards for business enterprises or the accounting system for business enterprises, and the other is to consider the nature of investment, whether it is equity investment, overseas debt investment or fixed assets (projects under construction) investment.

1) If it is equity investment or debt investment, the tax angle is that the investment cost is allowed to be deducted, and the generated interest is not capitalized and included in the profit and loss, regardless of the accounting system;

2) If the investment is fixed assets (or projects under construction), what accounting system will be implemented?

Implement the enterprise accounting system or the accounting standards issued by 200 1: fixed assets expenditure should be considered when considering interest capitalization, because if it is a special loan, the interest generated by the special loan is linked to the weighted average of the accumulated expenditure of fixed assets; Capitalization of general loan interest is not considered in the original standard or enterprise accounting system.

Implement new accounting standards (new standards issued in 2006, now revised as 20 10): new standards are divided into capitalized interest generated by special loans or capitalized interest generated by general loans. Interest generated by special loans can be fully capitalized, interest income from unused loans can be deducted from all capitalized interest, and investment income from temporary investment can also be deducted from all capitalized interest; There are also interest expenses incurred by general loans that are still linked to asset expenditures.