Intangible assets during the preparation period need to be amortized, and the amortization fee is included in the start-up cost.
Accounting entries:
Debit: long-term deferred expenses - start-up expenses
Credit: intangible assets - sale of land use rights.
Intangible Assets refer to identifiable non-monetary assets that have no physical form and are owned or controlled by an enterprise. Intangible assets can be divided into broad and narrow senses. Intangible assets in a broad sense include monetary funds, accounts receivable, financial assets, long-term equity investments, patent rights, trademark rights, etc., because they do not have physical entities, but are expressed as certain legal rights. or technology. However, in accounting, intangible assets are usually understood in a narrow sense, that is, patent rights, trademark rights, etc. are called intangible assets.