(1) Long-term borrowing costs
1. Contents of borrowing costs p>
Borrowing costs refer to the interest, amortization and auxiliary expenses of discount or premium incurred by the enterprise due to borrowing, as well as the exchange difference incurred due to foreign currency borrowing. Interest incurred due to borrowing includes interest incurred by enterprises borrowing funds from banks or other financial institutions, interest incurred from issuing bonds, and accrued interest on interest-bearing debt; amortization of discounts or premiums incurred due to borrowing, Mainly refers to the discount or premium incurred by the issuance of bonds, and its amortization is essentially an adjustment to the interest rate of each period of borrowing; the auxiliary expenses incurred due to borrowing refer to the handling fees, commissions, printing fees, and commitments incurred by the enterprise during the borrowing process. Fees and other expenses; the exchange difference arising from foreign currency borrowing refers to the impact on the recording currency amount of the principal and interest of foreign currency borrowing due to exchange rate changes.
There are two methods for accounting treatment of borrowing costs: first, when the costs are incurred, they are directly recognized as current expenses and included in the current profits and losses; second, they are capitalized change. The so-called capitalization of borrowing costs is the process in which borrowing costs are included in corporate financial reports as part of the historical cost of certain assets purchased with the borrowing. There are principles for handling whether borrowing costs are capitalized, when they should be capitalized, when they should stop capitalization, and how they should be measured. In our country's accounting practice, the following different treatment methods are adopted for borrowing costs:
(1) Long-term borrowing costs incurred during the establishment of the enterprise (the purchase and construction of fixed assets) (Excluding borrowing costs), they are treated as start-up expenses and included in long-term deferred expenses.
(2) Long-term borrowing costs incurred for the purchase and construction of fixed assets that occur before the relevant assets reach their intended usable condition shall be capitalized. Included in the cost of the fixed assets purchased and constructed; borrowing costs incurred after the assets reach the intended usable state are regarded as financial expenses and directly included in the current profit and loss.
(3) The long-term borrowing costs incurred by the enterprise in the daily production and operation process are not directly used for the purchase and construction of fixed assets.Included in current profit and loss.
(4) The long-term borrowing costs incurred by the enterprise during the liquidation period shall be included in the liquidation profits and losses.
(2) Accounting treatment of long-term loans
For To reflect the various long-term borrowings of the enterprise, a "long-term borrowing" account should be set up to calculate the borrowing, accrued interest, repayment and balance of various long-term borrowings. This account belongs to the liability category. The credit side registers the borrowed amount and the expected interest payable; the debit side registers the amount of principal and interest repayment; the ending balance is on the credit side, indicating the amount of long-term borrowing principal and interest that has not yet been repaid. This account should set up detailed accounts according to loan units, and carry out detailed accounting according to loan types. It should be noted that the expected long-term borrowing interest should be accounted for through the "long-term borrowing" account rather than being credited to the "accrued expenses" account. Long-term borrowing costs should be recorded in accounts such as "long-term deferred expenses", "construction in progress", "fixed assets" and "financial expenses" respectively according to the purpose and period of the long-term borrowing.
There are generally two ways for enterprises to borrow long-term loans: one is to deposit the loan in a bank and withdraw it at any time under the supervision of the bank; the other is to have a borrowing limit approved by the bank. Borrow at any time within the limit. In this way, the amount borrowed by the enterprise within the limit is directly credited to the "project in progress", "fixed assets" and other accounts according to its purpose. There are also different ways to repay long-term corporate borrowings: it can be an installment payment of interest to repay the principal when due; it can be a lump sum payment of principal and interest when due; it can also be an installment payment of principal and interest. The following examples illustrate the accounting treatment of long-term loans under different borrowing methods and repayment methods.
[Example 1] A company borrowed 5,000,000 yuan from the bank on January 1, 2000 to build a factory. The loan period was 3 years. The annual interest rate is 8%. The loan interest is repaid at the end of each year, and the principal is repaid in one lump sum when it is due. On January 1, 2000, the enterprise purchased 3,000,000 yuan of engineering materials, all of which were used. On January 1, 2001, it used bank deposits to pay related expenses of 1,100,000 yuan. The factory was completed and put into use at the end of 2001. Based on the above information, the enterprise should make the following accounting entries:
(1) Obtain a loan
Debit: bank deposit 5000000
Loan: long-term loan 5000000
(2) Purchase of materials and supplies
Borrow: Engineering supplies 3,000,000
Loan: Bank deposit 3,000,000
(3) Receipt of materials and supplies
Debit: Under construction Project 3000000
Loan: Project materials 3000000
(4) Calculate the first year interest 400000 Yuan (5,000,000×8%), the capitalized interest expense is 240,000 Yuan
Debit: financial expenses 160,000
Construction in progress 240,000
Loan: Long-term borrowing 400,000
(5 ) Repay the interest on the first year's loan
Borrow: long-term loan 400,000
Loan: bank deposit 400000
(6) Relevant expenses incurred in the second year
Debit: Construction in progress 1100000
Loan: bank deposit 1100000
(7) Calculate the borrowing interest in the second year, The capitalized interest should be 328,000 yuan
Debit: financial expenses 72,000
Project under construction 328000
Loan: long-term borrowing 400000
(8) Accounting entries for repayment of loan interest Same as (5)
(9) The factory is completed and delivered for use
Debit: fixed assets 4668000
Loan: Project under construction 4668000
(10) At the end of January of the third year, the interest for that month is 33333.33 yuan (5000000×8%÷12 )
Debit: financial expenses 33333.33
Loan: long-term borrowing 33333.33
(11) The accounting entries for accrued interest in each subsequent month are the same as (10)(12) Regular repayment of principal and interest in the third year
Borrow: long-term loan 5,400,000
Loan: Bank deposit 5,400,000
[Example 2] A certain enterprise borrowed money to pay for the purchase of equipment that does not require installation within the approved borrowing limit. The amount is 45,000 yuan. The annual interest rate is 8%, the loan period is two years, and the principal and interest will be repaid once upon maturity.
(1) Obtain a loan to purchase equipment
Debit: Fixed assets 45,000 Loan: Long-term borrowing 45,000
(2) Monthly accrual of loan interest of 300 yuan (45,000 ×8%÷12)
Debit: financial expenses 300
Loan: long-term borrowing 300
(3) Repay the principal and interest of the loan when due
Borrow: long-term loan 52200
Loan: bank deposit 52200
2. Long-term accounts payable
(1) Accounting content of long-term accounts payable
">Long-term Payables are mainly liabilities formed by using compensation trade to introduce foreign equipment or financing leasing fixed assets. Because when compensation trade is used to introduce foreign equipment or financing leasing equipment, the assets are generally acquired and used first, and then the payment is made. Later, a long-term liability will be formed, which is long-term payables.
In order to reflect the use of compensation trade to introduce foreign equipment or finance lease of fixed assets For liabilities formed, a "long-term payable" account should be set up to calculate the formation, repayment and balance of long-term payables. This account is a liability, and the credit side registers the long-term payables; the debit side registers the repayment amount; The ending balance is on the credit side, indicating the amount of long-term payables that have not yet been repaid. This account should set up detailed accounts according to the types of long-term payables.
(2) Long-term payables Accounting processing
1. Payment for imported equipment
The payment for imported equipment is in Formed in compensation trade. Compensation trade means that enterprises introduce equipment, even technology and necessary raw materials from abroad, and then use the products produced by the equipment to return the equipment price.
The amount payable for imported equipment is calculated through the "long-term payables" account. When an enterprise introduces equipment according to the contract and introduces tools and spare parts along with the equipment, it should be calculated according to its foreign currency amount (including foreign transportation and miscellaneous charges) and the prescribed exchange rate (general It is the market exchange rate on the day when the business occurs or at the beginning of the current period) is converted into RMB for accounting, and debits "project in progress" (need to install equipment), "fixed assets" (no need to install equipment), "raw materials", "low value and consumables" "Products" and other accounts, credit the "Long-term payables - payables for imported equipment" account.
[Example 3] According to the compensation trade contract, an enterprise imported demand The installation equipment and special tools are converted into RMB 1,230,000 based on the amount of foreign currency payable and the current exchange rate, of which the equipment price is 1,200,000 yuan and the tool price is 30,000 yuan. The following accounting entries should be made:
Borrow: Construction in progress 1,200,000
Low-value consumables 30,000
Loan: Long-term payables - 1,230,000 for imported equipment
The enterprise uses RMB deposits or borrowings to pay for import duties, domestic transportation and installation fees For fees, accounts such as "Projects under Construction" should be debited, and accounts such as "Bank Deposits" or "Long-Term Loans" should be credited.
[Example 4] Commitment [ Example 3] The enterprise used RMB borrowings to pay a total of 110,000 yuan for import duties and domestic transportation and miscellaneous charges, of which 105,000 yuan should be borne for equipment and 5,000 yuan for tools. In addition, 3,000 yuan for installation and commissioning fees should be paid with bank deposits. The following accounting entries should be made ：
(1) Pay customs duties, domestic transportation and miscellaneous charges
Debit: 105,000 for projects under construction
Low-value consumables 5,000
Loan: long-term loan 110,000
(2) Pay installation and commissioning feesBorrow: 3000 for projects under construction
Loan: bank deposit 3000
(3) The equipment is installed and delivered for use
Debit: fixed assets 1,308,000
Loan: construction in progress 1,308,000
[Example 5] Inherited from [Example 3] and [Example 4], after the imported equipment was put into production, the first batch of 500 products was produced, each sold for 300 yuan, all of which were used to repay the money for the imported equipment. The relevant accounting entries are as follows ：
(1) Product sales processing
Debit: Accounts receivable 150000
Loan: Main business income 150,000
(2) Repay the money for imported equipment
Debit: Long-term accounts payable - 150,000 for imported equipment
Credit: Accounts receivable 150,000
It should be noted that the equipment introduction business for compensation trade is generally measured and settled in a certain foreign currency. The RMB amount of the above "long-term payables" is the amount payable in foreign currency. The result after the exchange rate conversion at the time when the business occurs or at the beginning of the current period. Due to the volatile exchange rates, at the end of each period, the RMB balance of the "long-term payables" account should be adjusted according to the end-of-period exchange rate, and the increase or decrease amount (exchange difference) should be recorded in "construction in progress" or " "Finance Charges" account. Exchange differences will be covered in Chapter 10.
[Example 6] Following the above example, at the end of a certain period, the RMB amount of long-term payables converted according to the end-of-period exchange rate should be increased by 1,580 yuan. The following accounting entries should be made:
Debit: Construction in progress (or financial expenses) 1580
Loan: Long-term payable - 1580 payable for imported equipment
2. Financing lease fee payable
If an enterprise finances and leases fixed assets, accounting for less than 30% of the total assets, it should be recorded according to the minimum payment of the lease, that is, the total rent is recorded and the lease fee is paid in installments. The occurrence and payment of finance lease fees payable should be accounted for through the "Long-term payables - Finance lease fixed asset lease fees payable" account.
[Example 7] A certain enterprise financed and leased a machine that did not need to be installed. The lease fee was 100,000 yuan, which was paid in four equal installments. The following accounting entries should be made:
(1) When renting a machine
Borrow: Fixed assets 100,000
Credit: Long-term payables - Fixed asset leasing fees payable for financing leases 100,000
;">(2) Each time the lease fee is paid
Debit: Long-term payables - 25,000 fixed asset lease fees payable for financing leases
Loan: bank deposit 25,000
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