Amortization refers to the cost of intangible assets that should be amortized each accounting period. Amortization can be calculated based on the amortization method chosen and the initial value of the intangible asset. For example, straight-line amortization can be calculated by dividing the initial value by the amortization period. Enterprises can choose appropriate amortization methods based on actual conditions. Commonly used amortization methods include straight-line method, accelerated method and reduced residual value method. The straight-line method evenly allocates the cost of intangible assets to the amortization period; the accelerated method means that the amortization expenses are larger at the beginning of the amortization period and gradually decrease in the later period; the residual value reduction method attributes the residual value to fewer accounting periods at the end of the amortization period. middle.
Intangible assets refer to non-monetary assets owned or controlled by an enterprise that have no identifiable physical form. It can be mainly divided into social intangible assets and natural intangible assets. There are the following types of intangible assets:
1. Social intangible assets include patent rights, non-patented technologies, copyrights, trademark rights, franchise rights, ten-site use rights, etc.;
2. Natural intangible assets include natural resources such as natural gas that do not have physical physical forms.
The main characteristics of amortization of intangible assets:
1. The amortization method of intangible assets is the straight-line method;
2. When amortizing intangible assets, the residual The value is assumed to be zero;
3. The starting month of amortization of intangible assets is the current month;
4. The amortization period of intangible assets is the estimated useful life.
In summary, during the use of assets, changes in value and impairment of intangible assets may occur. If a significant loss in value occurs, the company may need to make an amortization adjustment to reduce or stop amortizing the asset.
Legal basis:
"Enterprise Income Tax Law of the People's Republic of China"
Article 12
In calculating the tax liability When calculating taxable income, the amortization expenses of intangible assets calculated by the enterprise in accordance with regulations are allowed to be deducted. The so-called intangible assets refer to non-monetary long-term assets without physical form held by enterprises for the purpose of producing products, providing services, leasing or operating and managing, including patent rights, trademark rights, copyrights, land use rights, and non-patented technologies. , goodwill, etc.