If an asset meets one of the following conditions, it meets the identifiability standard in the definition of intangible assets:
1, which can be separated or split from the enterprise and can be used for sale, transfer, license, lease or exchange alone or together with related contracts, assets or liabilities.
2, from the contract rights or other legal rights, regardless of whether these rights can be transferred or separated from the enterprise or other rights and obligations.
Intangible assets mainly include patent right, non-patented technology, trademark right, copyright, land use right, franchise and so on.
The existence of goodwill is inseparable from the enterprise itself, which is unrecognizable and does not belong to the intangible assets referred to in this chapter.
Confirmation of intangible assets
Intangible assets can only be recognized when the following conditions are met:
1. The economic benefits related to this intangible asset are likely to flow into the enterprise;
2. The cost of the intangible asset can be measured reliably.
Self-created goodwill of enterprises and internally generated brands, registrations, etc. Should not be recognized as intangible assets.
Initial measurement of intangible assets
Intangible assets shall be initially measured at cost. The cost of self-developed intangible assets includes all the expenses incurred from the time when the intangible assets are confirmed to the time when they reach the scheduled usable state, but the expenses already spent in the previous period are no longer adjusted.
Subsequent measurement of intangible assets
First, judge whether the service life of intangible assets is determined.
If the service life of intangible assets is limited, the number of years of service life or the number of similar units of measurement such as output that constitute the service life shall be estimated; If it is impossible to foresee the period during which intangible assets will bring economic benefits to enterprises, they are regarded as intangible assets with uncertain service life.
(1) Intangible assets held by enterprises usually come from contractual rights or other legal rights, and the contract or law stipulates a clear service life.
The service life of intangible assets derived from contractual rights or other legal rights shall not exceed the term of contractual rights or other legal rights. Contract rights or other legal rights can be extended due to contract renewal, and there is evidence that the enterprise does not need to pay a lot of costs to renew the contract, and the renewal period should be included in the service life.
(2) If the service life is not stipulated in the contract or the law, the enterprise shall comprehensively judge various factors and determine the period during which intangible assets can bring economic benefits to the enterprise.
After adopting the above method, it is still impossible to reasonably determine the period when intangible assets bring economic benefits to enterprises, so that they are regarded as intangible assets with uncertain service life.
Second, the factors that should be considered in determining the service life of intangible assets
Enterprises to determine the service life of intangible assets, usually should consider the following factors:
(1) Existing information on the general life cycle of products produced by using this asset and the service life of similar assets;
(2) estimation of the present situation and future development trend of technology and process;
(3) the market demand for products or services produced by assets;
(4) Expected actions of current or potential competitors;
(5) the expected maintenance expenditure to maintain the ability of assets to bring economic benefits, and the expected ability of enterprises to pay related expenses;
(6) Relevant laws or similar restrictions on the asset control period, such as franchise period and lease period;
(7) Correlation with the service life of other assets held by the enterprise, etc.
Three. Amortization of intangible assets
The amortization amount of intangible assets is the amount after deducting the estimated residual value from its cost. For intangible assets with impairment provision, the accumulated amount of impairment provision for intangible assets shall also be deducted. The residual value of intangible assets with limited service life shall be zero, except for the following circumstances:
(1) The third party promises to purchase the intangible asset at the end of its service life;
(2) The estimated residual value information can be obtained according to the active market, and this market is likely to exist at the end of the service life of intangible assets.
An enterprise shall amortize intangible assets from the time they are available for use until they are no longer recognized as intangible assets.
The amortization method of intangible assets chosen by an enterprise shall reflect the expected realization mode of economic benefits related to the intangible assets. If the expected realization mode cannot be reliably determined, it shall be amortized by the straight-line method.
The amortization amount of intangible assets should generally be included in the current profit and loss (management expenses, other business expenses, etc.). ). The economic benefits contained in intangible assets are realized through the products produced or other assets, and the amortization amount shall be included in the cost of related assets.
An enterprise shall, at least at the end of each year, review the service life and amortization method of intangible assets with limited service life. If the service life and amortization method of intangible assets are different from those previously estimated, the amortization period and amortization method shall be changed.
An enterprise shall review the service life of intangible assets with uncertain service life in each accounting period. If there is evidence that the service life of intangible assets is limited, it shall be estimated and handled in accordance with the relevant provisions on intangible assets with limited service life.
Disposal and scrapping of intangible assets
The rental income and related expenses incurred by enterprises in leasing the right to use intangible assets are recognized as other business income and other business costs respectively.
When an enterprise sells intangible assets, the difference between the price obtained and the book value of the intangible assets shall be included in the current profit and loss (non-operating income or non-operating expenditure).
If the intangible asset is not expected to bring economic benefits to the enterprise, the book value of the intangible asset shall be written off and included in the current profit and loss.