Accounting entries for the sale of intangible assets
When selling intangible assets, the difference between the price obtained and the book value of intangible assets and related taxes and fees are included in the current profit and loss (asset disposal profit and loss):
Debit: bank deposit
Provision for impairment of intangible assets
accumulated amortization
Loan: intangible assets
Taxes payable-VAT (output tax)
Profit and loss on disposal of assets (difference or debit)
Expectation can not bring future economic benefits to enterprises;
If it is not expected to bring future 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).
Borrow: non-operating expenses
Provision for impairment of intangible assets
Loan: intangible assets
Accounting entries for purchasing intangible assets
Borrow: intangible assets
Taxes payable-VAT payable (input tax)
Loans: bank deposits
Definition and recognition conditions of intangible assets
Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by enterprises. It mainly includes patent right, non-patented technology, trademark right, copyright, franchise right, etc.
Intangible assets can only be recognized when the following conditions are met:
The economic benefits related to the intangible assets are likely to flow into the enterprise;
The cost of this intangible asset can be measured reliably.
Self-created goodwill of enterprises and internally generated brands, registrations, etc. Not recognized as intangible assets, because its cost cannot be measured reliably.