What Is a Non-Operating Expense?

Non-operating expenses refer to various non-operating expenses except for main business costs and other business expenses. Such as fines, donations, extraordinary losses, etc. To this end, an "non-operating expenditure" account must be set up to account for this content. When various non-operating expenses are incurred by the enterprise, it shall be recorded in the debit of this account; when the profit and loss is carried forward at the end of the period, the debit from the lender to the "profit of the year" account shall be transferred, and there shall be no balance in the account after the carryover.

Operating expenses

Business

Non-operating expenses refer to various expenses incurred by an enterprise that are not directly related to the daily production and operation activities of the enterprise. include

Tax laws for non-operating expenses: 1. Non-advertising sponsorship expenses must not

Non-current asset disposal losses include

When the taxpayer is a real estate company, when the real estate company sells real estate, or in the process of selling a house, because it sells real estate, it must perform corresponding financial treatment. For financial processing, this method is to be able to receive a certain amount of advance payment and use it as a house purchase contract. Based on the establishment of the house purchase contract, the corresponding sincerity payment is collected. However, when the good faith payment is received, The corresponding house purchase contract has not been signed. Therefore, it is not based on the money collected on the basis of the house sales contract, so it cannot be regarded as the company's turnover, nor can it be regarded as its main business income. In addition, sincerity for home purchases can determine the order of home buyers' selection and maintain the order of home purchases, but it does not have any legal effect.

The enterprise shall calculate the occurrence and carry-over of non-operating expenses through the subject of "non-operating expenses". This account can be calculated in detail according to non-operating expenditure items.

When confirming the disposal of non-current assets, debit the "non-operating expenses" account, and credit the "fixed assets cleanup", "intangible assets", "raw materials" and other subjects.

When confirming the losses and extraordinary losses included in the non-operating expenses, debit the "non-operating expenses" account, and credit the "property overruns", "cash in stock" and other subjects.

At the end of the period, the balance of the "non-operating expenses" account should be transferred to the "profit of the year" account, the "profit of the year" account should be debited, and the "non-operating expenses" account should be credited. There should be no balance in the subjects after carry-over.

Non-operating expenses reflect various expenses incurred by the company that are not directly related to its operating activities, including the disposal of non-current assets losses, non-monetary asset exchange losses, debt restructuring losses, loss of disk losses, charitable donation expenses, extraordinary losses, etc. An important indicator in corporate finance.

First confirm the property

For self-built fixed assets, the balance of surplus, loss, scrap, or damage to construction materials, minus the insurance company and the portion of the negligent compensation. Case-by-case: If the project has reached its intended use, it is included in current non-operating expenses. The net expenses incurred due to the trial operation before the project reaches the usable state are included in the project cost. If the constructed fixed asset has reached the intended use state but has not yet completed the completion procedures, it shall be transferred to the fixed asset cost at the temporarily estimated value according to the project budget, construction cost, or actual project cost from the day when it reaches the usable state. Make adjustments after completing the completion procedures.

Non-operating expenses belong to profit and loss account

Debit: The various non-operating expenses incurred by the registered enterprise. The credit balance at the end of the registration period is transferred to the "profit of the year" account. After the carryover, there is no balance in this account.