How to purchase intangible assets in installments?
When purchasing intangible assets, installment payment is adopted, and estimation and accounting are carried out:
Borrow: intangible assets
Loans: bank deposits
Loan: accounts payable-estimation -x company.
Amortization of intangible assets:
Borrow: management fee-amortization fee
Loan: intangible assets
Get the invoice from company X.
Debit: accounts payable-estimation
Loans: bank deposits
What is intangible assets?
Intangible assets refer to identifiable non-monetary assets that have no physical form and are owned or controlled by enterprises. Intangible assets in a broad sense include monetary funds, long-term equity investment, financial assets, patent rights and trademark rights. Because these intangible assets have no specific physical entities, they are mainly presented in the form of some legal rights or technologies. In a narrow sense, intangible assets include enterprise patent rights and trademark rights, which are closely related to the operation of enterprises. It is worth noting that the honors created by enterprises and the brands and registrations generated internally should not be recognized as intangible assets.
Generally speaking, intangible assets are accounted for according to the actual cost, that is, all expenses incurred from the acquisition of intangible assets to the scheduled usable state are the cost of intangible assets. If the intangible assets are developed by the enterprise itself, the cost composition is mainly the expenses incurred after meeting the conditions for confirming the intangible assets and before reaching the scheduled usable state, but those that have been spent will not be adjusted.
The confirmation of intangible assets needs to meet two conditions, one is that the economic benefits related to the intangible assets are likely to flow into the enterprise, and the other is that the cost of the intangible assets can be measured reliably. Only when these two conditions are met can it be confirmed.