How to amortize the purchased patent intangible assets?

Amortization of intangible assets is based on the service life of the patent right, and the amortization time is generally 10 year. If the time is stipulated in the purchase contract at the time of purchase, it shall be amortized according to the time stipulated in the contract. Suppose a patent is purchased for 654.38 million yuan, amortized for 10 years, and the specific entries for each month are as follows:

Borrow: management expenses or sales expenses-amortization of intangible assets is 833 yuan (calculated from 65,438+0,000/65,438+02)?

Loan: cumulative amortization? 833 yuan

Amortization of intangible assets is a method to amortize the original price of intangible assets within the effective period. Amortization of intangible assets generally adopts the straight-line method and is directly included in the "cumulative amortization" account.

Extended data:

Accounting requirements for amortization of intangible assets

1. An enterprise shall amortize intangible assets from the time they are available for use until they are no longer recognized as intangible assets.

2. The amortization method of intangible assets chosen by the enterprise should reflect the expected realization mode of 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.

3. In general, the amortization amount of intangible assets should be included in the current profit and loss (management expenses, other business expenses, etc.). ). The economic benefits contained in intangible assets are realized through the products produced or other assets, and the amortization amount shall be included in the cost of related assets.

4. An enterprise shall, at least at the end of each year, review the service life and amortization method of intangible assets with limited service life. If the service life and amortization method of intangible assets are different from those previously estimated, the amortization period and amortization method shall be changed.

References:

Baidu encyclopedia-amortization of intangible assets