How to account for the amortization of intangible assets? How intangible assets are amortized

For term-based intangible assets, if they are amortized in installments during the effective period of use, and the estimated useful life of trademark rights and patent rights is determined, and the risk of impairment is low, the straight-line method of amortization is used to directly include profit or loss. The processing is as follows: pay the franchise fee.

Borrow: Intangible assets Franchise fee 24,000

Credit: Bank deposit 24000

Annual Amortization: Borrow: Management Expenses Amortization of Franchise Fee 4800 (24000 5) Credit: Intangible Assets Franchise Fee 4800

When buying a brand:

Borrow: Intangible Assets Trademark Rights **Brand 24000 Credit: Bank Deposit 24000

Annual Amortization: Borrow: Management Expenses Amortized Consumption of Intangible Assets 4800 (24000 5) Credit: Amortized Expenses Amortized Consumption of Intangible Assets 4800

Depending on your specific situation, the intangible assets that belong to the new company are accounting issues.

The intangible assets generated during the establishment of the enterprise should be accounted for as follows:

1. According to the regulations, the amortization of intangible assets during the start-up period shall be included in the start-up expenses, and after the establishment of the enterprise, it shall be included in the profit and loss of the current period in accordance with the relevant provisions of the accounting standards for business enterprises.

2. The intangible assets of this brand should be accounted for for amortization

When buying a brand:

Borrow: Intangible Assets, Trademark Rights, **Brand.

Credit: Bank deposits.

Amortized annually: borrowed: administrative expenses Amortized consumption of intangible assets.

Credit: expenses to be amortized Intangible assets amortized consumption.

At the time of payment: borrow: intangible assets - franchise fee 24000 credit: bank deposit 24000

Amortized over 5 years:

Monthly borrowing: management expenses--- amortization of intangible assets 400 credit: intangible assets - franchise fee 400

The amortization of intangible assets is generally carried out using the average life method. The specific amortization method is as follows:

1. The amortization period of intangible assets shall be amortized according to the service life stipulated in the contract for obtaining land use rights;

2. If the service life cannot be determined, the tax law stipulates that it will be amortized over 10 years.

3. Amortization formula: annual amortization = original value of intangible assets Amortization period, monthly amortization = annual amortization 12,4. Intangible assets are recorded in the current period and should be recorded in the current month for cumulative amortization, and the amortization entries are:

Debit: Administrative expenses - amortization of intangible assets, Credit: accumulated amortization.

How to account for the amortization of intangible assets is as follows:

The amortization methods of intangible assets include the straight-line method, the total production method, etc. The amortization method of intangible assets chosen by the enterprise should reflect the expected realization of the economic benefits related to the intangible assets. If the expected realization method cannot be reliably determined, the straight-line method of amortization shall be adopted.

Enterprises should amortize intangible assets on a monthly basis. The amortization amount of intangible assets shall generally be included in the profit or loss for the current period, and the amortization amount of intangible assets used by the enterprise shall be included in the management expenses; For leased intangible assets, the amortization amount is included in other operating costs; If the economic benefits of an intangible asset are realized through the products produced or other assets, the amortization amount shall be included in the cost of the relevant asset.

Example 1] Company A purchased a concession at a cost of RMB 4,800,000 and the contract stipulates that the benefit period is 10 years, and Company A should amortize RMB 40,000 (4,800,000 10 12) per month. When amortizing each month, Company A should make the following accounting treatment:

Debit: Management fee 40000

Credit: Accumulated amortization of 40,000

Example 2] On January 1, 2007, Company A leased the non-patented technology developed by itself to Company D, the cost of the non-patented technology was RMB 3,600,000, and the lease term agreed by the two parties was 10 years, and Company A should amortize RMB 30,000 (3,600,000 10 12) per month. When amortizing each month, Company A should make the following accounting treatment:

Borrow: 30,000 for other business costs

Credit: Accumulated amortization of 30,000

Enterprises will use certain intangible assets in their daily business activities, and the intangible assets used should be amortized according to regulations, so how to deal with the amortization of intangible assets?

Intangible assets are generally considered to be understood in a narrow sense in accounting, that is, patent rights, trademark rights, etc. are called intangible assets.

First of all, it should be clarified that the amortization method of intangible assets includes the straight-line method, the GDP imitation method, etc., and the amortization method of intangible assets selected by the enterprise should reflect the expected realization of the economic benefits related to the intangible assets. If the expected realization method cannot be reliably determined, the straight-line method of amortization shall be adopted.

An enterprise shall amortize intangible assets on a monthly basis, and the amortization amount of intangible assets shall generally be included in the profit or loss for the current period. The amortization of intangible assets used by an enterprise is included in administrative expenses. The amortization of leased intangible assets is included in other operating costs.

If the economic benefits of intangible assets are realized through the production of products or other assets, the amortization amount shall be included in the cost of production of relevant assets.

1. Accounting treatment of amortization of intangible assets with limited useful life.

1. When acquiring intangible assets.

Borrow: Intangible assets.

Credit: Bank deposits.

2. When amortized annually:

Borrow: Manufacturing Expenses Administrative Expenses.

Credit: Accumulated amortization.

2. Accounting treatment of amortization of intangible assets with indefinite useful lives.

1. When acquiring intangible assets.

Borrow: Intangible assets.

Credit: Bank deposits.

2. When amortized.

Borrow: Asset impairment loss.

Credit: Provision for impairment of intangible assets.

What is an asset impairment loss?

An asset impairment loss is a loss caused by the carrying amount of an asset being higher than its recoverable amount. The new accounting standards stipulate that the scope of asset impairment is mainly the treatment of impairment of fixed assets, intangible assets and other assets unless otherwise specified. The relevant accounting treatments are as follows:

1. This account accounts for the losses caused by the provision for impairment of various assets according to the standards of asset impairment.

2. This account shall be accounted for in detail according to the items of asset impairment losses.

3. If an enterprise determines the impairment of assets according to the criteria of asset impairment, this account shall be debited according to the amount to be written down, and the "provision for bad debts", "provision for inventory decline", "provision for impairment of long-term equity investment", "provision for impairment of held-to-maturity investment", "provision for impairment of fixed assets", "construction in progress - impairment provision", "engineering materials - impairment provision", "productive biological assets - impairment provision", "intangible assets impairment provision", "goodwill - impairment provision", "" Provision for loan losses", "Debt assets - provision for decline in value", "Provision for loss of goods - provision for decline in price" and other accounts.

4. If the value of the relevant assets is restored after the enterprise has made provision for bad debts, inventory depreciation, impairment of held-to-maturity investment, loan loss provision, etc., it shall debit the accounts of "bad debt provision", "inventory depreciation provision", "held-to-maturity investment impairment provision", "loan loss provision", "debt-bonded assets - depreciation provision", "surplus materials - depreciation provision" and other accounts within the original amount of impairment provision, and credit this account.

5. At the end of the period, the balance of this account should be transferred to the "profit of the year" account, and there is no balance in this account after the carryover.

Amortization Entry: Debit: Administrative Expenses - Amortization of Intangible Assets, Credit: Accumulated Amortization.

Amortization of intangible assets: From the time when they are available for use to the time when they are derecognized, they shall be systematically amortized within the expected useful life from the month in which they are obtained, and the difference in the month in which the intangible assets are disposed of shall not be amortized. That is, the intangible assets increased in the current month will be amortized in the current month; The intangible assets that are reduced in the current month are no longer amortized in the current month.

The amortization period of intangible assets shall be determined according to the specific circumstances: if the contract stipulates the benefit period, it shall be marketed according to the period not exceeding the benefit period; If the contract does not stipulate the benefit period but the law stipulates the effective period, it shall be amortized at a rate not exceeding the effective period prescribed by law; If the business period is shorter than the effective period, it shall be amortized according to the number of years not exceeding the business period; If the contract does not stipulate the benefit period, and the law does not stipulate the validity period, it shall be amortized over a period not exceeding 10 years.

Enterprises should analyze and judge the useful life of intangible assets when they acquire them, and intangible assets with limited useful life should be amortized. So how should the accounting treatment be done when the intangible rubber assets are amortized?

Accounting entries for the amortization of intangible assets.

1. When an enterprise amortizes a beamless vertical wang-shaped asset for its own use:

Borrow: administrative expenses, etc. – amortization of intangible assets.

Credit: Accumulated amortization.

2. When an enterprise amortizes leased intangible assets:

Borrow: Other operating costs.

Credit: Accumulated amortization.

What are intangible assets?

Refers to identifiable non-monetary assets that do not have a physical form. Intangible assets are divided into broad and narrow senses, and intangible assets in a broad sense include monetary funds, long-term equity investments, financial assets, trademark rights, patent rights, etc., because they do not have a material entity, but are manifested as some legal rights or technologies. However, intangible assets are usually understood in a narrow sense in accounting, i.e., patent rights, trademark rights, etc. are referred to as intangible assets.

For example, Company A has a patented technology, and according to market research, the products produced by it are no longer available in the market, and it is decided that it should be resold. At the time of resale, the book balance of the patented technology was 6 million yuan, the amortization period was 10 years, and the amortization was carried out by the straight-line method, and the cumulative amortization was 3 million yuan.

Assuming that the residual value of the patent is 0, the accumulated impairment provision is 1.6 million yuan.

It is assumed that no other relevant factors are taken into account.

Debit: Accumulated amortization of 3,000,000

Provision for impairment of intangible assets is 1,600,000

Non-operating expenses - loss on disposal of non-current assets 1,400,000 loans: intangible assets - patent rights 6,000,000

Accounting entries for the retirement of intangible assets.

Debit: Accumulated amortization.

Provision for impairment of intangible assets.

Non-operating expenses – loss on disposal of non-current assets.

Credit: Intangible assets.

Intangible assets are generally amortized using the straight-line method, which is equivalent to the average life method in the depreciation method of fixed assets, but when the intangible assets are amortized, they are amortized in the current month of purchase, and they are not amortized in the current month when they are reduced. Straight-line method for calculating the depreciation of Acacia annualis Annual depreciation rate = (1 - estimated net residual value rate) Estimated service life (years) 100%.

It should be clarified that the amortization methods of intangible assets include the straight-line method, the total production method, etc. The amortization method of intangible assets chosen by the enterprise should reflect the expected realization of the economic benefits related to the intangible assets. If the expected realization method cannot be reliably determined, the straight-line method of amortization shall be adopted.

In general, amortization expenses are much smaller than depreciation expenses, that is, most companies' fixed assets are much larger than intangible assets, so amortization and depreciation are generally disclosed together without distinction.

The amount is not large and can be directly charged to the management fee.

Borrow: Intangible assets.

Credit: Bank deposits.

If the amount is small, it can be paid in a lump sum in the current period, and it can be directly credited to the expense account. Such as:

Debit: Administrative expenses (corresponding line accounts).

Credit: Bank deposits.