What impact does intangible assets have on a company’s net profit?

The amortization of intangible assets may be included in expenses or costs. Regardless of whether expenses or costs are included, it will have an impact on current profits.

The total annual profit is the remainder of a company's annual operating income after deducting costs and business taxes. This is what people usually call profit. Its relationship with the annual operating income is:

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Annual operating profit = annual operating income - annual operating costs - annual operating taxes and surcharges - period expenses - asset impairment losses and gains from fair value changes - losses from fair value changes investment income (-investment losses)

Total annual profit = annual operating profit annual non-operating income - annual non-operating expenses

Net profit = total profit - income tax expense

Intangible assets will also contribute a lot of profits. Help enterprises develop rapidly