How to calculate the intangible assets of non-patented technology

Non-patented technology intangible assets are accounted for: its cost includes all expenditures from the confirmation of intangible assets to the scheduled usable state, but the expenditures already spent in the previous period are not adjusted.

Intangible assets can only be recognized when the following conditions are met:

1. The economic benefits related to this intangible asset are likely to flow into the enterprise;

As an intangible asset, a project must have the conditions that the economic benefits of its production are likely to flow into the enterprise. Because the most basic feature of assets is that the expected economic benefits generated are likely to flow into the enterprise, if the expected economic benefits generated by a project cannot flow into the enterprise, it cannot be recognized as the assets of the enterprise.

2. The cost of the intangible asset can be measured reliably.

Self-created goodwill of enterprises and internally generated brands, registrations, etc. It should not be recognized as intangible assets because its cost cannot be measured reliably.