Intangible assets include patent right, non-patented technology, trademark right, copyright, land use right, franchise and so on.
Intangible assets refer to identifiable non-monetary assets without physical form. Intangible assets can be divided into broad sense and narrow sense. Intangible assets in a broad sense include financial assets, long-term equity investment, patent rights, trademark rights and so on. Because they have no physical entity, they represent some kind of legal right or technology.
But intangible assets are usually understood in a narrow sense in accounting, that is, patent rights and trademark rights are called intangible assets.
Intangible assets are usually measured at actual cost, that is, all expenses incurred in obtaining intangible assets and making them reach the predetermined usable state are regarded as the cost of intangible assets. For intangible assets obtained from different sources, their initial cost composition is also different.
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.
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 profit and loss of asset disposal.
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 (non-operating expenses).
Refer to the above content: Baidu Encyclopedia-Intangible Assets