What Are Other Assets?

Other assets generally refer to the amortized start-up expenses incurred by the joint venture during the period from the start of preparation to the formal commissioning of the enterprise. With the consent of the parties to the joint venture, after the enterprise begins production and operation, it may be amortized in installments to cover the cost of the product. The start-up fee generally does not include all capital expenditures incurred in the acquisition of fixed assets during the preparation period. For example, during the preparatory period, the purchase of residential buildings and transportation cars with high value and long service life. At the same time, the demolition costs, survey and design costs, and temporary facility costs incurred during the preparation of the enterprise shall be included in the capital construction cost of the enterprise and shall not be amortized for the start-up costs. During the preparation period, the expenses incurred by personnel of the joint venture for the establishment of the joint venture shall specify the scope and standard of the expenses. The expenditure standards of the staff of the parties to the joint venture shall be established in accordance with the principle of reciprocity. In the expenses incurred by the joint venture, a legal original certificate is required. The start-up expenses can be amortized evenly over 5 years after the enterprise starts production and operation. However, the annual amortization amount must not exceed 20%. In principle, it must be completed within the period before the joint venture is dissolved. ^[1]

Other assets

Right!

Other assets generally refer to the amortized start-up expenses incurred by the joint venture during the period from the start of preparation to the formal commissioning of the enterprise. With the consent of the parties to the joint venture, after the enterprise begins production and operation, it may be amortized in installments to cover the cost of the product. The start-up fee generally does not include all capital expenditures incurred in the acquisition of fixed assets during the preparation period. For example, during the preparatory period, the purchase of residential buildings and transportation cars with high value and long service life. At the same time, the demolition costs, survey and design costs, and temporary facility costs incurred during the preparation of the enterprise shall be included in the capital construction cost of the enterprise and shall not be amortized as start-up costs. During the preparation period, the expenses incurred by personnel of the joint venture for the establishment of the joint venture shall specify the scope and standard of the expenses. The expenditure standards of the staff of the parties to the joint venture shall be established in accordance with the principle of reciprocity. In the expenses incurred by the joint venture, a legal original certificate is required. The start-up expenses can be amortized evenly over 5 years after the enterprise starts production and operation. However, the annual amortization amount must not exceed 20%. In principle, it must be completed within the period before the joint venture is dissolved. ^[1]

Chinese name

Other assets

Foreign name

other assets

Overview

Assets other than monetary funds, fixed assets

Including

Start-up costs, long-term deferred expenses

Subject

Administrative expenses

Introduction

Start-up costs refer to various expenses incurred in addition to the value of relevant property materials during the preparation period, including staff salaries, office expenses, training expenses, travel expenses, printing expenses, registration fees, and expenses not included in the value of fixed assets. Borrowing costs, etc. Long-term deferred expenses refer to the paid expenses with an amortization period of more than one year, such as the expenses for major improvements in operating leased fixed assets and overhaul of fixed assets. Other long-term assets generally include special materials approved by the state for reserve, bank frozen deposits, temporary facilities and property involved in litigation.