There are many ways to amortize intangible assets. Because the computer software program is greatly influenced by outdated technology, the method similar to accelerated depreciation of fixed assets is adopted for amortization. The name of this method in the accounting book is double declining balance method.
Double declining balance method refers to a method to calculate the depreciation of fixed assets according to the original price of fixed assets minus the accumulated depreciation at the beginning of each period and the double straight-line depreciation rate without considering the estimated net output value. The formula is as follows:
Annual depreciation rate =2÷ estimated depreciation period × 100%, and annual depreciation amount = initial book value of fixed assets × annual depreciation rate.
Monthly depreciation rate = annual depreciation rate12
Monthly depreciation amount = net book value of fixed assets at the beginning × monthly depreciation rate
Net book value of fixed assets at the beginning = original value of fixed assets-accumulated depreciation-provision for impairment of fixed assets
In order to prevent the net salvage value from depreciating in advance, the current accounting system stipulates that in the last two years of the use of fixed assets, the depreciation calculation method is changed to the average life method, that is, the book balance of fixed assets MINUS the net salvage value is divided by 2 as the depreciation that should be accrued in the last two years.
So this is the first year amortization, and the amortization amount should be multiplied by 2.
There is a detailed explanation in the book "Accounting" by certified public accountants.