- Prepaid expenses for loans such as prepaid interest expenses, or prepaid interest of bonds upon issuance.
- Interest incurred from purchase on credit, hire-purchase.
- Expenses for issuance of bonds with high value which are amortized in many years.
- Expenses for major repairs of fixed assets with high value which are not accrued, therefore such expenses must be amortized in many years.
- Transferred amount of foreign exchange differences and foreign exchange difference due to revaluation of monetary items dominated in foreign currencies (in case of foreign exchange loss) of construction activities (pre-operating period) upon completion of construction.
- Difference where selling price is lower than net book value of fixed assets sold and re-leased being financial lease;
- Difference due to selling price is smaller than net book value of fixed assets sold and re-leased being operating lease;
- Expenses relating to investment property after initial recognition which are unqualified to be capitalized as an additional cost of investment property but the investment property is at high value; the expenses are required to be amortized.
- Business combination which does not result in no parent – subsidiaries relationship but goodwill or equitization of the state-owned enterprises resulting in goodwill.
- Other expenses.
2. Account 242 is used to record expenses relating to operating activities lasting for more than one fiscal year.
3. Calculation and amortization of long term prepayment into operating expenses of each accounting period shall be subject to nature and amount of each type of expenses.
4. Long term prepayment incurred, charged to expenses in each accounting period and the remaining prepayment which have not been amortized into expenses shall be followed up.
5. Foreign exchange difference (foreign exchange loss) of construction activities incurred in pre-operating period which have not been amortized into expenses.