Linear amortization

Amortization period generally does not exceed 10 year. Like depreciation, intangible assets can be amortized by straight-line method and accelerated method. In terms of the amount, in general, the amortization expense is far less than the depreciation expense, that is to say, the fixed assets of most companies are far greater than the intangible assets, so amortization and depreciation are generally disclosed together without distinction.

Small amount can be directly included in the management expenses.

Borrow: intangible assets XXXXX

Loan: bank deposit ￥XXXXX

If the amount is small, it can be collected at one time in the current period or directly included in the expense account. For example:

Debit: management fee (corresponding detailed account) ￥XXX

Loan: bank deposit ￥XXX

The specific calculation formula is:

(1) straight-line depreciation method, the calculation formula of annual depreciation expense:

Annual depreciation expense = (original value of fixed assets-net residual value)/estimated service life

(2) According to the product method of depreciation years, the calculation formula of annual depreciation expense is:

Remaining service life from this year.

Annual depreciation expense = (original value of fixed assets-net salvage value) x sum of unused years/estimated years.

Extended data:

Example: Company A bought the corporate bonds issued by Company B on June 5438+1 October12002, with an annual interest rate of 10% and a face value of 10000 yuan, and paid 9279 yuan. The market interest rate at that time was 12%, and the interest at the end of each year was 65438.

When purchasing bonds, Company A makes the following accounting entries according to the actual payment amount:

Borrow: long-term debt investment-bond investment (par value) 10000.

Loan: long-term debt investment-bond investment (premium) 72 1

Bank deposit 9279

The interest actually received by Company A in each period shall include the discounted amortization amount in addition to the interest calculated according to coupon rate 10%. The discount of the bonds is 72 1 yuan (10000-9279), which is amortized in five installments, and each installment shall be apportioned to 144 yuan (72 1).

Company A shall prepare the following accounting entries when collecting interest at the end of each year:

Borrow: long-term debt investment-bond investment (accrued interest) 1000.

Long-term debt investment-bond investment (discount) 144?

Loan: investment income 1 144.

In this way, the book value of the bonds purchased at a discount increased by 65,438+044 yuan per period. When the bond expires, the book value of the bond investment of Company A is equal to the face value of the bond of 65,438+00,000 yuan.

References:

Baidu encyclopedia-straight-line amortization

References:

Baidu encyclopedia-amortization