How to do the amortization of intangible assets of the company?

intangible assets purchased by enterprises generally refer to trademark rights, patent rights, etc. Intangible assets should be amortized according to regulations. How to make accounts when amortizing intangible assets?

how to make accounts for the amortization of intangible assets of the company?

when the intangible assets are amortized, the amortization amount is included in the management expenses-intangible assets amortization account. Generally speaking, it can be divided into the following two types:

If the company has implemented the new accounting standards, the actual amortization entries are:

Debit: management expenses-amortization of intangible assets

Loan: cumulative amortization. If the company fails to implement the new accounting standards:

, the actual amortization entry is:

Debit: management expenses-amortization of intangible assets

Loan: amortization of intangible assets

Amortization of intangible assets means that the enterprise should analyze and judge its service life when acquiring intangible assets. Intangible assets with limited service life should be amortized. The residual value of intangible assets with limited service life shall be regarded as zero. Intangible assets with limited service life shall be amortized from the month when they are available for use (that is, when they reach their intended use), and shall not be amortized in the month when they are disposed of. Amortization methods of intangible assets include straight-line method and total production method.

cumulative amortization is used to amortize intangible assets, and the balance is generally in the lender, who registers the accrued cumulative amortization. The cumulative amortization account is an asset account, which is used to calculate the amortization of intangible assets. Listed in the assets of the balance sheet as a deduction of intangible assets. Cumulative amortization only belongs to the adjustment subject of intangible assets, and the registration direction is opposite to that of intangible assets.

entry for sale of intangible assets

when selling, the difference between the price obtained and the book value of the intangible assets and related taxes and fees shall be counted into the current profit and loss (asset disposal profit and loss):

debit: bank deposit

intangible assets impairment reserve

accumulated amortization

loan: intangible assets

tax payable-value-added tax payable (output tax)

asset disposal.

borrowing: non-operating expenses

provision for impairment of intangible assets

Intangible assets belong to asset subjects, and intangible assets refer to identifiable non-monetary assets that are owned or controlled by enterprises and have no physical form. Intangible assets include patent right, non-patented technology, trademark right, copyright, land use right, franchise and so on.