What is the formula for amortization of intangible assets?
The amortization of intangible assets under the new accounting standards adopts the straight-line method, which requires intangible assets to be amortized within the expected service life. The calculation formula is: monthly amortization amount = (original value of intangible assets-residual value of intangible assets-provision for impairment of intangible assets)/amortization period/12.
Amortization of intangible assets refers to the systematic and reasonable allocation of the amortization amount of intangible assets with limited service life during their service life. Amortization begins in the increased month, and is not amortized in the decreased month.
What is intangible assets?
Intangible assets refer to non-monetary assets that are owned or controlled by enterprises and have no identifiable physical form. Mainly can be divided into social intangible assets and natural intangible assets.
1. Social intangible assets include patents, non-patented technologies, copyrights, trademarks, concessions, land use rights, etc.
2. Natural intangible assets include natural resources such as natural gas without physical form.
Accounting entries for amortization of intangible assets
Debit: management expenses-amortization of intangible assets
Loan: accumulated amortization
Main characteristics of amortization of intangible assets
2. The amortization method of intangible assets is the straight-line method;
4. When amortizing intangible assets, the residual value is assumed to be zero;
1. The amortization month of intangible assets is the current month;
3. The amortization period of intangible assets is the expected service life.
Basic characteristics of intangible assets
1, no physical form;
2. It is recognizable;
3. It belongs to non-monetary long-term assets.