The following items can be included in the construction in progress:
1. This account calculates the value of the enterprise's infrastructure, technical transformation and other construction projects in progress.
The subsequent expenditures of the enterprise related to fixed assets, including daily repair costs, major repair costs, renovation expenditures, house decoration costs, etc. for fixed assets, meet the fixed asset recognition conditions stipulated in the fixed assets standards. , is also accounted for in this account; if the fixed assets recognition conditions are not met, it should be accounted for in the "administrative expenses" account and not accounted for in this account.
2. This subject should be accounted for in detail according to "construction projects", "installation projects", "equipment in installation", "prepaid expenses" and individual projects. ??
If a project under construction is depreciated, a detailed account of "impairment provision" should be set up in this account for accounting. 3. What are the main accounting treatments for projects under construction?
(1) For projects under construction outsourced by an enterprise, when advance payment of project payment and material preparation payment is made to the contracting enterprise according to the contract, this account will be debited and " Bank deposits" and other subjects. When the equipment is delivered to the contracting enterprise for installation, this account (Equipment During Installation) is debited and the "Engineering Materials" account is credited.
When settling the project price with the contracting enterprise, this account will be debited according to the additional project payment, and "bank deposits", "accounts payable" and other accounts will be credited.
(2) If an enterprise's self-operated projects under construction use engineering materials, the company's raw materials or inventory commodities, this account will be debited and "engineering materials", "raw materials" and "inventory commodities" will be credited etc. subjects. If planned costing is adopted, the apportioned cost differences should be carried forward at the same time.
If the above matters involve value-added tax, the corresponding value-added tax amount should be carried forward.
For the employee benefits payable by the project under construction, this account will be debited and the "employee benefits payable" account will be credited.
The water, electricity, equipment installation, repair, transportation and other labor services provided by the auxiliary production department for the project will be debited to this account and credited to "Production Cost - Auxiliary Production Cost" and other accounts.
Construction work in process (English: construction work in process) refers to unfinished project expenditures such as new construction, reconstruction, and expansion of enterprise assets, or technical transformation, equipment updating, and major repair projects.
Projects under construction usually have two methods: "self-operated" and "outsourced". Self-operated projects under construction refer to projects in which the enterprise purchases project materials, constructs and manages them by itself; outsourcing projects under construction refers to projects in which the enterprise signs a contract and is contracted and constructed by other engineering teams or units.
Construction-in-progress of public institutions:
Construction-in-progress of public institutions refers to various buildings (including new construction and reconstruction) that have incurred necessary expenditures but have not yet been completed and delivered for use. , expansion, repair, etc.) and equipment installation projects.