The recorded value of intangible assets
Intangible assets can only be recognized if they meet the following two conditions under the premise of conforming to the definition. First, the economic benefits related to the intangible assets are likely to flow into the projects recognized as intangible assets by the enterprise, and the economic benefits generated must be possessed and likely to flow into the enterprise. Usually, the future economic benefits generated by intangible assets may be included in the income from selling goods and providing services, or in the cost reduced or saved by enterprises using the intangible assets, or reflected in other benefits obtained. For example, production and processing enterprises use certain intellectual property rights in the production process, which reduces their future production costs rather than increasing their future income. In accounting practice, it is necessary to implement professional judgment to determine whether the economic benefits created by intangible assets may flow into enterprises. When executing this judgment, it is necessary to make a reasonable estimate of various economic factors that may exist in the estimated service life of intangible assets, and it should be supported by conclusive evidence. For example, does the enterprise have enough human resources, high-quality managers, related hardware equipment and related raw materials to cooperate with intangible assets to create economic benefits for the enterprise? At the same time, it is more important to pay attention to the influence of some external factors, such as whether there are new technologies and products related to this intangible asset, or whether the products produced according to it have a market. When making a judgment, the management of an enterprise should make the most robust estimation of various factors existing in the estimated service life of intangible assets.
Secondly, the reliable measurement of the cost of intangible assets is the basic condition for confirming assets, which is relatively more important for intangible assets. Such as brand name, registration, masthead, customer list and the cost of substantially similar projects generated within the enterprise, can not be distinguished from the whole business development cost, and the cost cannot be measured reliably, so it should not be recognized as intangible assets.
The entry of intangible assets is specifically divided into the following five points:
(1) The purchased intangible assets are accounted for according to the actual purchase price, handling fees and other capital expenditures.
(2) Intangible assets created by oneself and obtained through legal procedures shall be priced according to the actual costs incurred in the development process, including test fees, model making fees, development fees, drawing fees, attorney fees, design fees, salaries, registration application fees and other fees.
(3) Intangible assets invested by shareholders shall be accounted for according to the amount agreed in the contract or agreement or the value confirmed by evaluation.
(4) Intangible assets acquired by accepting donations shall be accounted for according to the amount of the attached documents. If the documents cannot be obtained, the accounting shall be made with reference to the market price of similar intangible assets, that is, the replacement cost.
(5) The appraisal of non-patented technology shall be confirmed by the statutory appraisal institution. Except for business combination, goodwill should not be recorded at a fixed price.
Accounting entries related to intangible assets
Outsourcing intangible assets
Borrow: intangible assets-non-patented technology, etc.
Taxes payable-VAT payable (input tax)
Loans: bank deposits
Self-developed intangible assets
When R&D expenditure occurs,
Debit: R&D expenditure-expensed expenditure (research expenditure and development expenditure that do not meet capitalization conditions)
R&D expenditure —— Capitalized expenditure (development stage expenditure eligible for capitalization)
Loans: bank deposits, raw materials, wages payable to employees, etc.
At the end of the period, the spent R&D expenses are transferred to the current management expenses.
Borrow: management fee
Loan: R&D expenditure-expense expenditure
When the intangible assets reach the usable state, the R&D expenditures that meet the capitalization conditions will be transferred to the intangible assets cost.
Borrow: intangible assets
Loan: R&D expenditure-capitalized expenditure
Accounting treatment of intangible assets amortization
Borrow: manufacturing expenses (intangible assets used for product production)
Management expenses (intangible assets for management)
Other business expenses, etc. (Leased intangible assets)
Loan: accumulated amortization
Accounting treatment of intangible assets impairment
Debit: Asset impairment loss-intangible assets impairment reserve.
Loan: provision for impairment of intangible assets
Disposal of intangible assets
Debit: bank deposit
Intangible assets impairment reserve
accumulated amortization
Loan: intangible assets
Taxes payable-VAT payable (output tax)
Profit and loss on asset disposal (or debit)
If it is expected that intangible assets will not bring future economic benefits to the enterprise, the book value of the intangible assets shall be resold and included in the current profit and loss (non-operating expenses).
Borrow: non-operating expenses
accumulated amortization
Intangible assets impairment reserve
Loan: intangible assets