Example: The loan amount of a project is1000000 yuan, which will be invested in three years. 50 million in the first year, 30 million in the second year, 20 million in the third year, and the project is put into production in the fourth year. The loan term of this project is 10 year, and the loan interest rate is 6. 12% per annum (benchmark interest rate). The loan interest expense during the construction period of this project is:
Question 2: What is "capitalized interest during construction"? Thank you. Capitalization of interest during construction refers to the interest generated by borrowing from foreign countries when the company has insufficient self-owned funds and builds its own fixed assets or produces large-scale equipment and machinery with a production period of more than one year. Under normal circumstances, financial expenses are recorded, but because these interests are generated by the construction of these assets, they are not daily interest expenses, so they are recorded in fixed assets.
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Question 3: What do you mean by "depreciation of fixed assets includes interest during the construction period, but does not include interest on loans during the construction period"? For example, the loan during the construction period is1million, and the interest generated by the loan during the construction period is1million, so this11million is included in the fixed assets, but this1/million will still generate interest when it is repaid in the future. If the interest generated in the first year of repayment is
Question 4: What is the reason why the interest during the construction period can be included in the total investment? 10 The repayment method of loan and interest has nothing to do with the interest account;
That is to say, in accounting practice, the loan interest for the construction of fixed assets should be capitalized and included in the value of fixed assets before its completion (whether it is repaid during the construction period or not); Interest after the completion or use of fixed assets is included in financial expenses.
Question 5: The significance of including construction interest in fixed assets. Construction interest is capitalized first, included in the subject of "construction in progress", and transferred to "fixed assets" after construction is completed; Its significance lies in that the interest during the construction period should be included in the projects under construction, and at the same time, it should be prevented from being included in the current financial expenses, thus inflating the current profits.
Question 6: Feasibility study, construction period interest, etc. These conditions you gave can't calculate the interest during the construction period for you.
Question 7: Is the interest during the construction period a financial expense? If the loan is used to build a building, it should be invested in the project under construction and transferred to fixed assets upon completion.
Question 8: Does the construction investment of the first-class constructor include the interest during the construction period? It is mentioned in the revision of cost engineer's teaching materials that the total construction investment should include the loan interest during the construction period, so should the first-class construction teaching materials, but the interest is dynamic.
Question 9: In general, what is the proportion of interest during the construction period in the investment estimation? According to my long-term experience in making project feasibility reports, during the one-year construction period, the interest during the construction period generally accounts for about 1.6%-2% of the total investment. Because the bank stipulates that the proportion of self-raised funds of enterprises should be above 30%, and the proportion of loans should be at most 70%.