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.
Second, the debit balance at the end of the undergraduate project reflects the value of the unfinished construction in progress of the enterprise.
Extended data:
Projects under construction in public institutions:
The projects under construction of public institutions refer to all kinds of buildings (including new construction, reconstruction, expansion and repair, etc.). ) and equipment installation projects that have incurred necessary expenses but have not been completed and delivered.
1, construction engineering
(1) When fixed assets are transferred to reconstruction, expansion or repair, etc.
Borrow: Construction in progress.
Loan: non-current assets fund-construction in progress
At the same time, according to the fixed assets corresponding to the non-current assets fund
Borrow: non-current assets fund-fixed assets
accumulated depreciation
Loans: fixed assets
(2) When paying the project price and special loan interest.
Borrow: Construction in progress.
Loan: non-current assets fund-construction in progress
At the same time,
Debit: business expenditure
other charges
Loans: bank deposits
(3) When the project is completed and put into use,
Borrow: fixed assets
Loan: non-current assets fund-fixed assets
meanwhile
Borrow: non-current assets fund-construction in progress
Loan: Construction in progress.
2, equipment installation project
(1) Purchase equipment to be installed (duplex)
Borrow: Construction in progress.
Loan: non-current assets fund-construction in progress
At the same time, according to the actual payment amount
Debit: business expenditure
operating costs
Loans: bank deposits
(2) Installation cost.
Borrow: Construction in progress.
Loan: non-current assets fund-construction in progress
meanwhile
Debit: business expenditure
Loans: bank deposits
(3) When the equipment is installed and delivered for use (double entry bookkeeping)
Borrow: fixed assets
Loan: non-current assets fund-fixed assets
meanwhile
Borrow: non-current assets fund-construction in progress
Loan: Construction in progress.
Conditions for converting projects under construction into fixed assets:
The assets that meet the capitalization conditions purchased, constructed or produced reach the intended usable or saleable state, which means that the assets have reached the intended usable state of the purchaser or builder. Can be judged from the following aspects:
(1) The construction (including installation) or production of assets eligible for capitalization has been completely or substantially completed.
(2) The assets purchased, constructed or produced that meet the capitalization conditions basically meet the design requirements, contract provisions or production requirements, even if there are a few cases that are inconsistent with the design, contract or production requirements, it will not affect their normal use.
(3) The amount of expenditure that continues to occur on the assets that meet the capitalization conditions purchased, constructed or produced is very small or almost no longer occurs.
According to the above regulations, the conversion of construction in progress into fixed assets is judged according to the completion degree of construction in progress. Therefore, when the main project is basically completed and can be used, the project under construction will be converted into fixed assets and depreciation will be extracted.
If the cost cannot be accurately measured, it can be estimated and recorded, and depreciation can be extracted accordingly. When the project is settled, the estimated cost will be adjusted according to the actual settlement cost, and the depreciation will be recalculated accordingly, but the depreciation already extracted will not be adjusted.
Baidu Encyclopedia-Project under Construction