What should I do if the intangible assets are converted into paid in capital?

The accounting treatment of the conversion of intangible assets into paid-up capital can usually be carried out by following the following steps:

Assessing the value of intangible assets: First, the intangible assets need to be valued to determine their fair value or other acceptable valuation methods. The appraisal can be carried out by a professional appraisal agency or appraiser.

Calculation of the amount of intangible assets converted into paid-in capital: Based on the results of the valuation, the amount of intangible assets converted into paid-in capital is determined. This is usually calculated based on the appraised value and the equity ratio.

Shareholder capital contribution certificate: After the shareholder contributes intangible assets as paid-in capital, it is necessary to prepare the shareholder capital contribution certificate, including the shareholder capital contribution confirmation, capital contribution certificate, intangible asset appraisal report, etc.

Accounting treatment: According to the accounting system and standards used, the amount of paid-in capital and the corresponding intangible asset account are debited and debited.

It should be noted that the specific accounting treatment may be affected by local accounting standards and regulations, and it is recommended to issue an appraisal report or consult related issues.

Accounting for the disposal of intangible assets:

It includes the transfer, free transfer and donation of intangible assets.

1) When intangible assets are transferred to assets to be disposed of:

Borrow: Loss or excess of assets to be disposed of.

Accumulated amortization. Credit: Intangible assets.

2) When intangible assets are actually transferred:

Borrow: Non-current assets** - intangible assets.

Credit: Loss or excess of assets to be disposed of.

3) When the transfer income is received:

Borrow: Bank deposit.

Credit: Loss or excess of assets to be disposed of.

The net income from disposal shall be handled in accordance with the relevant provisions of the state.

According to general accounting principles and regulations, intangible assets are generally not directly included in paid-up capital. Paid-in capital generally refers to the part of the registered capital of the company that is actually paid by shareholders in cash or other valuables.

Intangible assets are an asset class in a business and their value is usually reflected in the company's balance sheet, rather than as part of the initial portion of paid-up capital. The valuation of intangible assets can provide a company with more accurate information about the value of assets, but it generally does not directly affect the amount of paid-up capital.

Paid-up capital is usually formed by the cash, goods or other valuables injected into the company by shareholders, which are recognized as actually paid capital and used to support the operation and development of the company. Intangible assets are usually acquired in the context of business formation or other specific transactions, and are not directly related to the process of formation of paid-up capital.

It is important to note that different countries and regions may have different regulations and requirements, and the specific situation may vary from region to region. If you want to ask for an evaluation report or related questions, please look for a positive evaluation.

Intangible assets can be used for paid-in registered capital, which is stipulated in the Company Law.

The first paragraph of Article 27 of the Company Law stipulates that: "Shareholders may make capital contributions in monetary terms, or in kind, intellectual property rights, land use rights, and other non-monetary assets that can be valued in monetary terms and can be transferred in accordance with the law; However, there is an exception for property that is not allowed to be used as capital contribution as stipulated by laws and administrative regulations. "The Regulations on the Administration of Company Registration and the Regulations on the Administration of Registration of Registered Capital of Companies stipulate that:

Non-monetary property contributed by shareholders or promoters shall be appraised by an asset appraisal agency with appraisal qualifications, and then the capital verification agency shall conduct capital verification.

1.What is IP Contribution?

Answer: To put it simply, it is the act of a certain entity (natural person or company) using its own intellectual property rights to be used for paid-in registered capital after being passed by a third-party appraisal agency.

2.What intellectual property rights can be used to fund?

A: Patents, proprietary technology, trademarks, computer software copyrights, integrated circuit layout designs, plant variety rights, etc.

3.How to select assessment agencies?

Answer: The first step is to log in to the China Asset Appraisal Association** to enter the name of the institution to query, you can query the formal institution, and the second step is to understand the appraisal cases and professional teams of the appraisal agency in the past and the relevant honors obtained.

4.What are the processes for IP funding?

Answer: Appraisal Property Transfer Capital Verification Industrial and Commercial Filing.

5.What materials do I need to prepare for IP funding?

Answer: Property rights and qualification subject certification materials, intellectual property production and operation materials, business plan or feasibility study report, etc.

6.How long does it take to contribute to an IP?

Answer: Under normal circumstances, the evaluation is based on seven working days after the submission of materials, and the intellectual property transfer cycle is usually about ten working days, depending on the type of intellectual property rights, and the capital verification is about two working days.

7.How much does it cost to contribute to an IP?

A: The total cost consists of the evaluation fee, the property right change fee, and the capital verification fee.

Accepting investment in intangible assets will lead to an increase in the intangible assets of the company, and the increase in assets will be included in the debit accounting, and at the same time, it will lead to an increase in paid-in capital or share capital, and the increase in owners' equity will be included in the credit accounting.

The accounting office that accepts investment in intangible assets is to borrow: intangible assets - such and such intangible assets, and credit: paid-in capital or share capital.

Intangible assets are the main form of transfer of ownership of intangible assets, once intangible assets are transferred, that is, the original owner no longer has the ownership, right to use, disposal of intangible assets, etc., so what should be done about the accounting treatment of intangible assets?

Accounting entries for intangible assets**.

Borrow: Bank deposit.

Provision for impairment of intangible assets.

Accumulated amortization. Gains and losses on disposal of assets (debits).

Credit: Intangible assets.

Tax Payable – VAT payable (output tax), if involved

Gains and losses on disposal of assets (credit differences).

What is an impairment provision for intangible assets?

The "provision for impairment of intangible assets" account is an asset account, which is used to account for the impairment provision of intangible assets of an enterprise, and should be accounted for in detail according to the items of intangible assets.

On the balance sheet date, if the intangible assets are impaired, the impairment loss of the surplus assets shall be debited according to the amount that should be written down.

Credit: Provision for impairment of intangible assets.

The closing credit balance of the "Provision for Impairment of Intangible Assets" account, which is the provision for impairment of intangible assets that has been accrued but not yet sold by the registered enterprise.

The provision for impairment of intangible assets accrued by an enterprise shall not be deducted before income tax because it is a contingent expense and does not conform to the principle of certainty, and shall be treated as an increase in tax adjustment.

What is a gain or loss on disposal of an asset?

Gains or losses on disposal of assets reflect the gains or losses on disposal recognized when an enterprise** is classified as non-current assets or disposal groups held for sale, as well as gains or losses on disposal of fixed assets, construction in progress, productive biological assets and intangible assets that are not classified as held for sale.

"Gains and losses on disposal of assets" is a profit and loss account, which is directly included in the gains or losses of the current period, affecting the operating profit.

If the enterprise gives up the ownership of the intangible asset, the difference between the price obtained and the book value of the intangible asset shall be included in the profit or loss for the current period. Let's take a look at the specific accounting treatment.

Knowledge of intangible assets.

Intangible assets refer to assets that have been used by an enterprise for a long time without a good physical form, including patent rights, non-patented technologies, trademark rights, rights of remorse, land use rights, goodwill, etc.

According to Article 22 of Chapter 5 of Intangible Assets No. 6 of Accounting Standards for Business Enterprises, the difference between the price obtained and the book value of the intangible assets shall be included in the profit or loss (non-operating income or non-operating expenses) of the intangible assets.

Therefore, the net income from intangible assets is gains, not income.

**Financial treatment of intangible assets.

The net loss is included in the non-operating expenses, and the net income is included in the non-operating income

Debit: Bank deposit (tax included).

Accumulated amortization. Provision for intangible asset differences.

Credit: Intangible assets.

Tax Payable – VAT payable (output tax).

Gains or losses on the disposal of assets (borrowable or loanable, credit means net gain, debit means net loss).

Intangible assets refer to identifiable non-monetary assets that do not have a physical form, such as land use rights, patent rights, trademark rights, etc. How to deal with intangible assets**? Let's find out.

Borrow: Bank deposit.

Provision for impairment of intangible assets.

Gains or losses on disposal of assets (**when a loss occurs).

Accumulated amortization. Credit: Intangible assets.

Tax Payable – VAT payable (output tax).

Gains and losses on disposal of assets (**when gains are realized).

Accounting entries for the purchase of intangible assets.

Borrow: Intangible assets.

Tax Payable – VAT payable (input tax).

Credit: Bank deposits.

Accounting entries for intangible assets developed by enterprises themselves.

1. Actual R&D expenditure.

Borrow: R&D expenses - expensed expenses (not meeting the capitalization conditions) Frontal regrets - capitalized expenditures (meeting the capitalization conditions).

Credit: raw materials, bank deposits, salaries payable to employees, etc.

2. Achieve the intended use.

Borrow: Intangible assets.

Credit: R&D expenses - capitalized expenditures.

3. Expense at the end of the period is transferred out.

Borrow: Administrative expenses.

Credit: R&D expenses - expensed expenses.

Accounting entries for the subsequent measurement of intangible assets.

Borrow: manufacturing costs.

Management fees. Other business costs.

Credit: Accumulated amortization.

1. Intangible assets do not have a physical form;

2. Intangible assets are non-monetary long-term assets;

3. Intangible assets are assets used by enterprises rather than first-class assets;

4. There is great uncertainty in the creation of economic benefits for intangible assets.

Borrowing and searching for such as: intangible assets, borrowing: tax payable - value-added tax payable - input tax, credit: paid-in capital, credit: capital reserve.