General decoration expenses are amortized according to the time agreed in the lease contract. If the decoration can be used for 5 years, it will be amortized in 60 months. If it takes several months to get the invoice, it will be amortized according to the remaining time. The amortization period of decoration expenses belongs to the decoration expenses of leased assets, which shall be amortized according to the scheduled lease term of the contract. Other circumstances included in the long-term deferred expenses shall not be amortized for less than 3 years.
Decoration cost items:
1, advocate material cost: advocate material cost refers to the material cost of finished products and semi-finished products designed according to the construction area or single project, such as floors, tiles, sanitary wares, homes, etc.
2. Auxiliary materials cost: Auxiliary materials cost refers to the material cost that is difficult to determine and calculate in decoration, such as paint, wires, water pipes, switch sockets, plates, sand, cement, nails, adhesive tape, adhesives, caulking agents, paints, etc.
3. Labor cost: Labor cost refers to the wages that need to be paid to workers in the whole construction process, such as carpentry, plumber, painter, bricklayer, installation cost, etc.
4. Design fee: Design fee refers to the measurement fee, design fee, drawing design fee, on-site supervision, material selection fee and other related service fees before construction.
5. Management fee: the fee charged by the decoration company for the management and supervision of workers and decoration materials during the decoration process. The calculation method of management fee is: (labor fee+material fee) *(5- 10%).
6. Tax: tax = (labor cost+material cost+management fee) *3. 14%. Some renovations will be tax-free, but there is no invoice. For future maintenance, it is recommended not to do so.
The above contents refer to:
People's Network-Change the amortization period of decoration expenses. Hunan and Hubei have increased their profits by 37 million this year.