Patent amortization year

When purchasing a patent: borrow: intangible assets -XX patent 30 loans: bank deposits, amortization at the end of the year:. Borrowing: management fee loan: cumulative amortization, which refers to the accounting treatment method of allocating the acquisition cost of other operating assets that can be used for a long time according to their service life, similar to the depreciation of fixed assets. Amortization expenses are included in management expenses, which reduces current profits, but has no effect on operating cash flow. General amortized assets, such as intangible assets such as large-scale software and land use rights and start-up expenses, can contribute to the company's business and income for a long time, so its acquisition cost should also be shared every year. Amortization period generally does not exceed 10 year.

1. Like depreciation, the amortization of intangible assets can also choose the straight-line method and the accelerated method. In terms of amount, general amortization expense is much smaller than depreciation expense, that is, the fixed assets of most companies are much larger than intangible assets. Therefore, amortization and depreciation are usually disclosed together, there is no difference. According to the provisions of Article 49 of the Detailed Rules of the Tax Law, the reserve fund of an enterprise shall be amortized by installments from the second month of the month when it starts production and operation, and the amortization period shall not be less than five years. Land use rights should be accounted for and amortized separately as intangible assets. The amortization period of intangible assets, if stipulated in the contract, shall be amortized according to the period stipulated in the contract; No contract, not less than 10 years. Changes of standards and amortization methods in the old and new accounting standards In February 2006, the Ministry of Finance officially issued accounting standards, in which the definition of intangible assets standards was more clear, and the accounting treatment of intangible assets scope and R&D expenses was 65,438+0 days after the realization of intangible assets standards and 2006,5438+0 years later.

2. The new intangible assets standard is more reasonable in the choice of intangible assets amortization method. Intangible assets are no longer amortized according to the average service life, but the expected consumption mode of future economic benefits of intangible assets is considered. Compared with the old intangible assets standards, the new intangible assets standards undoubtedly pay more attention to the ways in which intangible assets generate economic benefits, making the provision of accounting information more in line with the requirements of accounting information quality and making accounting information more objective and true. Article 15 of the old intangible assets standard stipulates that the cost of intangible assets should be amortized evenly within the expected service life from the month of acquisition. That is, the amortization of intangible assets adopts the straight-line method. Compared with fixed assets, intangible assets have many similarities.

3. Both are long-term assets, and economic benefits are released in various forms. The Fixed Assets Standard stipulates that an enterprise should reasonably choose the depreciation method of fixed assets according to the expected realization mode of economic benefits contained in fixed assets. Alternative methods include straight line method, workload method, double declining balance method and sum of years method. With the advent of knowledge economy, intangible assets play an increasingly important role in enterprise economic activities. Theoretically, the amortization method of intangible assets should also be compared with the depreciation method of fixed assets, that is, it should also reflect the way in which enterprises consume intangible assets.