Intangible assets are identifiable non-monetary assets owned or controlled by enterprises without physical form. Intangible assets include monetary funds, financial assets, long-term equity investment, patent rights, trademark rights, etc. Because they don't have physical entities, but show some legal rights or technologies. In accounting, intangible assets are understood in a narrow sense, and patent rights and trademark rights are regarded as intangible assets.
In accounting practice, to determine whether the economic benefits created by intangible assets may flow into enterprises, it is necessary to make reasonable estimates of various economic factors that may exist in the expected service life of intangible assets, and should be supported by clear evidence.
Extended data:
The relevant requirements of intangible assets stipulate that:
1. The amortization method of intangible assets chosen by the enterprise shall reflect the expected realization of the 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.
2. 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.
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