What is the depreciation period of intangible assets?

The depreciation period of intangible assets varies according to the benefit period stipulated in the contract, ranging from 1 to 10.

The depreciation of intangible assets adopts the straight-line method, and accounting requires intangible assets to be amortized within the expected service life; If the estimated service life exceeds the income life agreed in the relevant contract or the effective life stipulated by law, it shall be amortized according to the following principles:

First, if the contract stipulates the benefit period but the law does not stipulate the validity period, the amortization period shall not exceed the benefit period;

Second, if the contract does not stipulate the benefit period but the law stipulates the effective period, the amortization period shall not exceed the effective period stipulated by law;

Third, if the contract stipulates the benefit period and the law also stipulates the validity period, the amortization period should not exceed the shorter of the benefit period and the validity period;

Fourth, if the contract does not stipulate the benefit period and the law does not stipulate the effective period, the amortization period shall not exceed 10 year.

Intangible assets refer to identifiable non-monetary assets that are owned or controlled by enterprises and have no physical form. Intangible assets can be divided into broad sense and narrow sense. Intangible assets in a broad sense include monetary funds, accounts receivable, financial assets, long-term equity investment, patent rights, trademark rights and so on. Because they have no material entity, they show some legal rights or technologies. But intangible assets are usually understood in a narrow sense in accounting, that is, patent rights and trademark rights are called intangible assets.

Depreciation of fixed assets refers to the value of fixed assets gradually lost in use and transferred to commodities or expenses, and it is also the consumption of common parts of fixed assets during the service life of enterprises due to the use of fixed assets in production and operation. Determining the depreciation range of fixed assets is the premise of depreciation accrual.