The amortization methods of intangible assets include life average method (that is, straight-line method) and total output method.
An enterprise shall amortize intangible assets on a monthly basis. The amortization amount of intangible assets should generally be included in the current profit and loss. The amortization amount of intangible assets used by enterprises is included in the management expenses; Amortization of leased intangible assets is included in other business costs; The economic benefits contained in intangible assets are realized through products or other assets produced, and the amortization amount shall be included in the cost of related assets.
The cost of outsourcing intangible assets includes the purchase price, related taxes and other expenses that can be directly attributed to making the assets reach the predetermined usable state.
Intangible assets refer to identifiable non-monetary assets owned or controlled by enterprises without physical form. It mainly includes patent right, non-patented technology, trademark right, copyright, franchise right, etc.
Meet one of the following conditions, is considered to be identifiable:
Capable of being separated or divided from an enterprise. It can also be used for the sale, transfer, license, lease or exchange of multiple tapes or related contracts, assets or debts.
Derived from contractual rights or other legal rights, regardless of whether these rights can be transferred or separated from the enterprise or other rights and obligations.
The existence of goodwill is inseparable from the enterprise itself, which is unrecognizable and does not belong to intangible assets.
Intangible assets mainly include patents, non-patented technologies, trademarks, copyrights, land use rights and concessions.
Intangible assets can only be recognized when the following conditions are met:
The economic benefits related to the intangible assets are likely to flow into the enterprise;
The cost of this intangible asset can be measured reliably.
Self-created goodwill of enterprises and internally generated brands, registrations, etc. Not recognized as intangible assets, because its cost cannot be measured reliably.
Prepare for the primary accounting exam. For more information about the primary accounting exam, please pay attention to Global Quick Ask Accounting Online.
Pay attention to the global network school and ask how to amortize the intangible assets purchased by the company.