Intangible assets are current assets or non-current assets? Intangible assets are not Current assets and intangible assets are non-current assets. Current assets are assets and cash and cash equivalents that are expected to be realized, sold or consumed within a normal operating cycle or within a fiscal year. Such as cash on hand, bank deposits, trading financial assets, receivables and prepayments, inventories, etc. During the turnover transition, current assets start from the currency form, change their forms in sequence, and finally return to the currency form (currency funds → reserve funds, fixed funds → production funds → finished product funds → currency funds). Various forms of funds and production The circulation is closely integrated, the turnover speed is fast, and the liquidity is strong. Strengthening the audit of current asset business will help determine the legality and compliance of current asset business, check the correctness of the accounting treatment of current asset business, expose its shortcomings, and improve the efficiency of the use of current assets. Non-current assets refer to assets other than current assets, mainly including long-term equity investments, fixed assets, projects under construction, engineering materials, intangible assets, R&D expenditures, etc. Non-current assets are a concept relative to current assets, which have the characteristics of occupying more funds, slow turnover, and poor liquidity. Therefore, its asset management and accounting also have special requirements.
What does intangible assets mean? The concept corresponding to tangible assets is intangible assets, which includes social intangible assets and natural intangible assets. Social intangible assets usually include patent rights, non-patented technologies, trademark rights, copyrights, franchises, land use rights, etc. Natural intangible assets include natural resources such as natural gas that do not have physical physical forms. (1) Patent rights: refers to the exclusive rights granted by the national patent authority to applicants for inventions and creations within the statutory period, including invention patents, utility model patents and design patents. (2) Non-patented technology: also known as proprietary technology, refers to various technologies and know-how that are not known to the outside world, should be used in production and business activities, do not enjoy legal protection, and can bring economic benefits. (3) Trademark rights: refers to the right to use a specific name or pattern exclusively on a certain type of designated goods or products. (4) Copyright: Certain special rights that producers enjoy in accordance with the law for their literary, scientific and artistic works. (5) Franchise: Also known as business franchise or franchise, it refers to the right of an enterprise to operate or sell a specific product in a certain area or the right of an enterprise to accept the use of its trademark, trade name, technical secrets, etc. by another enterprise. (6) Land use rights: refers to the state allowing an enterprise to enjoy the right to develop, utilize and operate state-owned land within a certain period of time.
Accounting treatment of intangible assets The amortization methods of intangible assets include straight-line method, total production method, etc. The amortization method of intangible assets selected by the enterprise should reflect the expected realization method of the economic benefits related to the intangible assets. If the expected realization method cannot be reliably determined, straight-line amortization shall be used. Enterprises should amortize intangible assets on a monthly basis. The amortization amount of intangible assets should generally be included in the current profit and loss. For intangible assets used by the enterprise for its own use, its amortization amount is included in management expenses; for leased intangible assets, its amortization amount is included in other business costs; the economic value contained in a certain intangible asset If the benefits are realized through the products or other assets produced, the amortization amount shall be included in the cost of the relevant assets.