Business process, approval requirements and accounting treatment of real estate development

Business process, approval requirements and accounting treatment of real estate development

Influenced by the characteristics of real estate commodities and regulatory policies, compared with other enterprises, real estate development enterprises have the characteristics of long development cycle, large upfront investment, pre-sale system and joint development, which also determines the particularity of real estate enterprises in accounting and financial performance. The following is my understanding of real estate development business process, approval requirements and accounting treatment. Welcome to reading.

I. Overview

The real estate industry is a capital-intensive industry, which is greatly influenced by policies in the course of operation. The prophase, metaphase and anaphase of domestic real estate development and sales are all restricted by strict supervision and approval. Therefore, compared with other enterprises, real estate enterprises are different in operation, showing different characteristics, such as long project development cycle, large upfront investment, pre-sale system and common cooperative development. These operating characteristics also determine the particularity of real estate enterprises in accounting and financial performance. The research team of Zhongxin Real Estate Industry launched a series of special topics on real estate financial analysis. By analyzing the operating characteristics, it clarified the financial characteristics and existing problems of real estate development enterprises from development to sales, and provided reference and guidance for the credit analysis of real estate enterprises.

The topic * * * is divided into four parts. The first part introduces the general process of real estate project development and the accounting methods involved. The particularity of the process determines the operating and financial characteristics of real estate development enterprises; The second chapter, based on the development process, mainly analyzes the characteristics and risks of the main subjects in the financial report of real estate enterprises, such as the composition and scale of inventory, accounts received in advance and other subjects, which are obviously different from other industries; The third chapter mainly studies a special model derived from the financing side, "clearing shares and paying debts", and reveals the hidden risks of real estate enterprises; In the fourth chapter, we combine the above-mentioned operating and financial characteristics to analyze the financial indicators of real estate enterprises, explain their characteristics in profitability and turnover, and reveal their risks in debt repayment.

This paper is the first of a series of special topics on real estate financial analysis, which mainly combs the general project development process and related accounting treatment of real estate development enterprises from land acquisition to income carry-over. Please look forward to the follow-up articles on the risk concern of accounting subjects, the model analysis of "clearing stocks and real debts" and the analysis of financial indicators.

Second, the development process of real estate enterprises

(A) land acquisition stage

1, land acquisition method

Land use right is the most important production resource of real estate development enterprises and the primary condition of real estate development. At present, the methods of obtaining land use rights can be divided into three categories: obtaining land by "bidding, auction and hanging" is the most important way for real estate enterprises, and agreement transfer is applicable to public welfare undertakings, non-profit social organizations, institutions and some special land. In addition, merger and reorganization has become one of the more and more common ways for real estate enterprises to acquire land in recent years. The advantage of merger and reorganization is that it can avoid the competition brought by direct public purchase of land and save all kinds of taxes and fees that need to be paid for direct transfer of land. The specific differences between "clap, clap and hang" modes are as follows:

2. Land acquisition process

The general process for real estate enterprises to acquire land through government land transfer is shown in Figure 2:

(1) 1. Land auction preparation: including value investigation and judgment, project positioning and scheme determination, etc.

(2) after paying the deposit, participate in bidding, auction and auction for the land;

(3) After successful bidding, pay the land transfer fee, deed tax and transaction fee. , and signed the "state-owned land use right transfer contract";

(4) apply to the planning department for the "Construction Land Planning Permit" with the land transfer contract, land red line map and project approval documents;

⑤ After completing the planning procedures, the company prepares the planning permit, land transfer contract, land transfer fee, tax payment certificate and other materials, handles the state-owned land use certificate, and completes the confirmation.

As for the bid bond, generally speaking, the land transfer fee is not less than 20% of the target amount, but at present, many regulatory policies have increased the deposit ratio (such as Wuhan and Nanchang to 60%), shortened the payment period of land transfer fee, and put forward higher requirements for the financial strength of enterprises.

3. Accounting in the land acquisition stage

According to accounting standards, land use rights obtained by enterprises should usually be recognized as intangible assets, but changing the use of land use rights is specifically divided into:

(1) Land is used for building houses and building sales: the book value of relevant land use rights is taken as inventory and included in the cost of the houses and buildings built. Specific accounting treatment is as follows:

(2) Land is used to earn rent or capital appreciation: it should be converted into investment real estate. The acquisition cost of land use right is directly included in the subject of "intangible assets", and the book value of land use right is still accounted for as intangible assets without combining the calculation cost of above-ground buildings. The land use right and the above-ground buildings are amortized and depreciated respectively, and the deed tax paid is included in the "intangible assets" subject. Specific accounting treatment is as follows:

4. Tax treatment in the stage of land expropriation

The taxes involved in the land acquisition stage of real estate enterprises mainly include deed tax and stamp duty.

The deed tax rate is determined by the local government according to the local actual situation (3-5%). Taxpayers are required to declare and pay taxes within 10 days when signing the land and house ownership transfer contract, and pay taxes within the time limit approved by the deed tax collection authority. Deed tax generally does not pass the accounting of "taxes payable", and the purpose of obtaining land use rights is included in different accounting subjects. The deed tax paid by real estate enterprises for the land use right obtained by real estate development is included in the "development cost account", and the deed tax paid for the construction of office buildings and other land use rights obtained for their own use is included in the "intangible assets" account.

Stamp duty occurs when the land transfer contract is signed, and the tax amount is 0.5‰ of the land transfer fee. Developers who build low-rent housing and affordable housing in commercial housing projects can be exempted from stamp duty according to the proportion of the construction area of low-rent housing and affordable housing.

(2) Development and construction stage

1, real estate development and construction process

The process of real estate development and construction can be divided into four stages: project planning and design stage, project preparation stage, project construction stage and project completion acceptance stage.

Real estate development enterprises can only carry out project development and construction after obtaining the construction project planning permit and the construction project construction permit. First of all, enterprises need to carry out detailed project planning and design before obtaining construction project planning permit and construction project construction permit, and need to communicate and negotiate with relevant government departments where the project is located (usually it takes six months to one year); Thereafter, according to the declaration report and the approval of the National Development and Reform Commission, the land use planning permit, land certificate, approved planning scheme and architectural design drawings, the construction project planning permit shall be handled; Negotiate and sign construction contracts with contractors; According to the land certificate, planning permit, bidding to determine the construction team, construction drawing review certificate, quality and safety supervision procedures, etc. , for the "construction permit"; When entering the project construction stage, the developer's main task at this stage is to control the cost, pay the project progress payment, and ensure that the project is implemented in advance. The general construction process of the construction unit is as follows:

The project completion acceptance mainly includes two stages. First, after the completion of the project, real estate development enterprises, survey, design, construction, project supervision and other units for acceptance, settlement and filing; The second is the initial registration of property rights. Applicants for new houses shall submit "four certificates (construction land planning permit, state-owned land use permit, construction project planning permit, construction project construction permit)" and materials for acceptance of house completion, and apply to the registration authority for initial registration of house ownership within three months after house completion. For property buyers, the developer can handle the house ownership certificate for each property buyer after completing the initial property registration.

2, the development and construction stage of accounting

The construction and installation contracts signed by real estate development enterprises and construction enterprises generally adopt three contracting methods: contracting for work and materials, contracting for work without materials (materials supplied by Party A) and materials controlled by the employer (materials controlled by Party A).

Under the contract mode of replacing materials with work, the settlement price of construction and installation projects is basically the same, and the accounting treatment of real estate development enterprises is relatively simple. Because real estate enterprises have a high position in the cooperative relationship with construction enterprises, advance payment is rarely used. When the development project is completed, the real estate enterprise shall settle the project payment according to the balance after deducting the project price from the quality deposit agreed in the contract, and collect the construction and installation invoice issued by the construction enterprise in full. Because the construction party purchases materials, the invoice amount of the project price includes the material price, and the real estate development enterprise can confirm the cost according to the invoice issued by the construction party. Specific accounting treatment is as follows:

In the mode of contracting without contracted materials (materials supplied by Party A), the construction project of materials supplied by Party A refers to the project where real estate enterprises provide raw materials and construction units only provide construction services. Generally speaking, materials account for 30%~40% of the construction cost of commercial housing. Specific accounting treatment is as follows:

3, the development and construction stage of tax treatment

Under normal circumstances, the taxable categories in the development and construction stage mainly include urban land use tax and stamp duty.

The urban land use tax rate is calculated and levied by the local government according to the local population size and economic conditions, based on the land area actually occupied by taxpayers, and according to the prescribed tax amount (0.6~30 yuan/m2/year). For the construction land obtained through bidding, auction or transfer, the taxpayer shall pay the urban land use tax from the month following the delivery time agreed in the contract. If the delivery time is not stipulated in the contract, it shall be paid from the month following the signing of the contract, and the land use tax paid by the accounting enterprise shall be included in the management fee. In addition, developers who build low-rent housing and affordable housing in commercial housing projects can be exempted from urban land use tax according to the proportion of the construction area of low-rent housing and affordable housing.

Real estate enterprises in the development and construction stage, involving all kinds of construction and contract signing, should pay stamp duty according to regulations.

(3) Sales (pre-sale) stage

1, sales (pre-sale) conditions

According to the Urban Real Estate Management Law, the pre-sale of commercial housing shall meet the following conditions:

However, in the current overheated real estate market, many places have improved the pre-sale conditions in the regulatory policies introduced, as shown in Table 3:

Recently, Xiamen, Guangzhou, Xi and other places require existing houses to be sold after the land premium rate reaches a certain level. According to Article 7 of the Measures for the Administration of Commercial Housing Sales, existing houses shall generally meet the following conditions:

2. Sales (pre-sales) process

The main process of pre-selling commercial housing by real estate enterprises is as follows:

After obtaining the pre-sale permit, you can set the opening date of external sales, sign a house subscription agreement with the customers who intend to subscribe, as a guarantee for the subscriber to sign the pre-sale contract of commercial housing, and pay a certain amount of deposit to the developer, and then formally sign the pre-sale contract of commercial housing according to the subscription agreement. After the signing of the contract, it shall be filed with the local housing management department within the specified time, and the contract shall take effect after filing and registration. After signing the contract, the buyer shall pay the house payment and deed tax according to the payment time agreed in the contract. In addition, the sale of existing homes should not sign a pre-sale contract, but should sign a "commercial housing sale contract."

3. Accounting in the pre-sale stage

The stage of real estate sales (pre-sale) is an important stage for real estate development enterprises to obtain income and realize the return of funds, which mainly involves the accounting of deposit, down payment, mortgage deposit and pre-sale house payment.

The deposit is collected before the signing of the commercial housing subscription agreement, and finally returned to the customer or converted into the purchase price. Real estate enterprises can sign commercial housing subscription agreements with customers only after obtaining pre-sale permits. Therefore, the deposit is collected before the pre-sale, and the binding nature is very low, and the buyers can recover the money at any time. Therefore, accounting should not be treated as accounts receivable in advance, but as accounts payable of enterprises, as follows:

The deposit is the money collected before the signing of the commercial housing sales (pre-sale) contract, which is converted into the purchase price after the signing of the sales contract. If the customer fails to sign the purchase contract within the agreed time limit, the real estate enterprise will generally not refund the deposit paid. Because the deposit is the money collected on the basis of the enterprise obtaining the pre-sale permit and signing the commercial housing subscription agreement with the customer, it is essentially a part of the sales money. Therefore, the deposit should be regarded as the house payment and accounted for in the "accounts received in advance" subject, and the specific treatment is as follows:

Mortgage deposit is the money that the bank collects from the developer according to a certain proportion of the total loan in the process of mortgage loan, and bears the joint guarantee responsibility of mortgage loan. The bank will not return the mortgage deposit to the developer before the real estate license is completed and the mortgage registration is completed. During this period, if the borrower fails to repay the principal and interest on schedule as agreed in the contract, the developer will repay it on his behalf, and the bank has the right to directly deduct the relevant funds from the mortgage deposit account. The accounting method is as follows:

4. Pre-sale house payment confirmation income accounting

Pre-sale housing price refers to the sales price of commercial housing charged by real estate enterprises before the completion of the houses sold (actual sales price, housing price transferred from project funds, housing price transferred from other houses due to house change), which belongs to the nature of advance payment and is accounted for through the "advance payment" account.

For real estate enterprises, commercial housing sales that meet the following conditions shall be confirmed:

(1) The project has been completed and accepted, meeting the delivery conditions stipulated in the sales contract.

② The owner of the house has been informed to take over the house, and the settlement bill has been submitted to the owner for approval.

In practical work, some enterprises can confirm their sales income by issuing a notice of delivery, and some enterprises can confirm their sales income by "getting the key".

The accounting treatment method of pre-sale house payment is as follows:

It is worth noting that some enterprises have certain differences in the timing of sales revenue recognition in order to achieve a certain purpose. For example, some private enterprises always postpone the recognition of income for various reasons, such as not completing the completion acceptance procedures and not handling the real estate license, in order to achieve the purpose of paying less taxes; However, in order to achieve the established profit targets, some listed companies often confirm the income from pre-sale house prices in advance before the completion acceptance and delivery.

5, commercial housing sales cost accounting.

The accounting of sales cost of real estate development enterprises is based on the principle of matching income and cost, that is, when real estate development enterprises confirm the realization of sales income and sales area according to the principle of income recognition, they should carry forward the corresponding sales cost of development products at the same time.

After the completion and acceptance of the developed products reach the predetermined usable state, and after the cost settlement is completed, a "List of Development Product Costs" shall be prepared, detailing the total cost, total area, unit area cost and total number of units of each developed product. The "Detailed List of Development Product Costs" shall be used as the basis for carrying forward the development product costs, attached to the voucher, debited to the relevant detailed account of "Development Product" and credited to the relevant detailed account of "Development Cost".

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