At the end of the renovation, the decoration company proposed a series of additional costs. Should not give? Did you give it a loss? If you do not give it, you can live in your new home but you have to postpone it. Many homeowners have this experience. In order to avoid such problems, when you sign a contract, you need to confirm the following things: 1, confirm the budget Define the quantity of material. The quantity is a data to calculate the total quantity of work. It can be used to verify whether the decoration company is more or less. If you have questions about the quantity given by the decorating company, you can know it by going to the field. Clear brand specifications and processes: This project is mainly to write the brand, model and part of the construction process of the main materials or dressings. For example: The decoration company will write a bottom and two sides of this project in latex paint. If you ask for one end and three sides, then Add money; vice versa. 2, confirm the contract If there are any materials or construction nodes in the drawings that have been omitted in the quotation, after the incident is added, who will be responsible for the responsibility. If the additional amount exceeds 5% of the total price of the decoration, what should be done? 3, you can ask about the people who have done decoration in this company, through them to understand the company's situation. 1. If the decoration fee is a reasonable and necessary expenditure incurred before the purchase of the plant and arrival of the reservation before it can be used, according to Article 58(1) of the “Regulations on the Implementation of the Corporate Income Tax Actâ€, “purchased fixed assets to purchase The price and related taxes and fees and other expenses directly attributable to the onset of the arrival of the property at the time of booking are calculated as the basis for the taxation, which shall be included in the cost of fixed property and depreciated before tax. 2. If the decoration fee is the follow-up expenses for the seizure after the fixed assets are put into use, according to Article 13 of the "Corporate Income Tax Law" and Article 69 of the "Effects of the Companies Income Tax Act," if they are together, "(1) Repair costs More than 50% of the tax base at the time of obtaining the fixed property; (ii) The subsequent expenditure of extending the useful life of the fixed property after repair for more than 2 years, as a long-term deferred expense, amortized in accordance with the fixed asset's useful life; The follow-up costs for repairs that do not meet the above conditions must be accounted for in the current period in profit or loss. In the detailed practice, the following processing costs for the following items of fixed property seizures are as follows: 1. Fixed property repair costs should be directly charged to current expenses. 2. Fixed property improvement expenses shall be included in the book value of fixed assets, and the amount after the increase shall not exceed the recoverable amount of the fixed property. 3. If it is indistinguishable that fixed property repairs are still fixed property improvements, or fixed property repairs are linked to fixed property improvements, then the company shall perform the discrimination according to the above criteria, and the follow-up expenses of seizures shall be included in the fixed property value or calculated separately. Into the current expenses. 4. Fixed property decoration costs, if the above criteria can be used to make the cost, should be under the "fixed property" category under the "fixed property decoration" detailed category accounting, and in the two renovation period and the fixed property can still be used for both In the shorter period, use a reasonable method to calculate depreciation alone. If at the time of the next renovation, the balance of “fixed property renovation†related to the fixed property still has a balance, the balance should be fully charged to the non-operating expenses of the current period. 5.Financial leases follow the guidelines for the follow-up expenses of fixed assets that have been seized from fixed assets that were rented. For fixed-asset renovation expenses incurred by the seizure, if the above-mentioned criteria can be used for cost-effectiveness, a reasonable measure should be used in the short period of time between the two renovation periods, the remaining lease period, and the applicable life of fixed assets. depreciation. 6. The operating expenses of rented fixed assets that have been leased for operating leases should be accounted for separately in the category of “1503 Operational Leased Fixed Property Improvementsâ€, and the shorter period between the remaining lease period and the leaseable assets should be used. Inside, use a reasonable method to calculate depreciation alone. Because the company fulfilled the “Company Accounting Standards - Fixed Assets,†the accounting method for large repair costs of fixed assets was changed from the original option of accrual or depreciation to one-time expense of the current period of the outbreak, which was originally a fixed property repair. The balance of accrued or deferred expenses shall continue to use the original accounting policy until the termination of the write-off or amortization; the follow-up expenses of fixed assets after the implementation of the “Company Accounting Standards - Fixed Assets†shall be followed by The above guidelines are dealt with. Editor reminds: In matters related to money, in the above statement, the lawyer and the accountant gave a more comprehensive answer. After the renovation, the owners naturally do not have to worry about the legal protection of the legitimate property of every citizen. If the opinions of the owners and home improvement companies on the issue of follow-up expenses cannot be consistent, mediation can be as good as possible to mediate and then go to the legal level. Decoration contract decoration budget knowledge latex paint decoration paint decoration decoration company Digital Scale,Kitchen Weight Machine,Digital Weighing Machine,Food Weighing Scale Jiangyin Suofei Electronic Technology Co.,Ltd. , https://www.suofeiscales.com
What will happen if there are additional costs in the later stages of the renovation?