What is included in the income from the transfer of the right to use assets?

Income from the transfer of the right to use assets includes interest income and royalty income.

1) Interest income. The amount of interest income shall be calculated and determined on the balance sheet date according to the time when others use the monetary funds of the enterprise and the interest rate on the inventory as stipulated in the contract or agreement. (2) Royalty income.

The amount of royalty income shall be calculated and determined according to the time and method of charging agreed in the relevant contract or agreement.

1. Interest income mainly refers to the interest income formed by the external loans of financial enterprises, as well as the interest income generated by transactions between banks.

2. Royalty income mainly refers to the royalty income generated by the transfer of the right to use intangible assets (such as trademark rights, patent rights, franchise rights, software, copyrights) and other assets by enterprises.

The income from the transfer of the right to use assets includes interest income, royalty income, etc. The rent received by an enterprise from leasing assets, the interest received from debt investment, and the cash dividends obtained from equity investment also constitute income from the transfer of asset use rights, and the specific content is referred to the relevant chapters on leasing, financial assets, and long-term equity investment in this outline.

1. Treatment of interest income.

On the balance sheet date, the enterprise shall calculate and determine the amount of interest income according to the time when others use the monetary funds of the enterprise and the effective interest rate.

2. Treatment of royalty income.

The income from royalties shall be calculated and determined in accordance with the time and method of charging fees agreed in the relevant contracts or agreements. If the contract or agreement stipulates a one-time payment of royalties and no follow-up services are provided, it shall be deemed to be the sale of the asset and the revenue shall be recognized in a lump sum; Where follow-up services are provided, revenue shall be recognized in installments within the validity period specified in the contract or agreement. If the contract or agreement provides for the collection of royalties in installments, the revenue shall normally be recognized in installments according to the time and amount of collection specified in the contract or agreement or the amount determined by the calculation of the prescribed charging method.

4fang financial software.

The income from the transfer of the right to use assets includes both the income obtained from the lease of fixed assets and intangible assets and the investment income. The former is income from other businesses (except for companies whose main business is leasing business), while the latter is investment income (represented as investment income on an account basis). Income in the narrow sense includes operating income and investment income.

Income from the transfer of the right to use assets includes interest income and royalty income.

The income from the transfer of the right to use assets is one of the most important incomes of the enterprise (the other two main incomes are the income from the sale of goods and the income from the provision of labor services). It mainly includes interest income and income from the use of fees.

In addition, it also includes the rent received from leasing assets, the interest obtained from bond investment, and the cash dividend income obtained from equity investment, etc., and its accounting treatment refers to the relevant leasing, recognition and measurement of financial instruments, long-term equity investment, etc.

The rent received by an enterprise from leasing assets, the interest received from debt investment, and the dividends obtained from equity investment are also income from the transfer of the right to use assets.

Transfer of assets:

Transferable assets refer to the assets held by enterprises and individuals that can be used for lending and leasing and obtaining rent and interest, including funds, fixed assets and intangible assets. In other words, if an enterprise leases out idle fixed assets and intangible assets and collects rent, this is the transfer of the right to use the assets.

The transfer of assets is the transfer of the right to use the assets, and the income such as interest and rent is obtained from them. Interest income received on the transfer of the right to use cash. Royalty income arising from the transfer of intangible assets, etc.

Leasing of fixed assets to obtain rental income, etc. The transfer of the right to use an asset does not change the ownership of the asset.

The income from the transfer of the right to use assets includes interest income from leasing intangible assets, leasing fixed assets, debt investment, and dividend income from equity investment.

The accounting entries for income from the transfer of the right to use assets are as follows:

Debit: bank deposits, accounts receivable.

Credit: Other business income.

Tax Payable – VAT payable (output tax).

Borrow: Other hand gestures for this business cost.

Credit: Accumulated depreciation, accumulated amortization.

If the contract or agreement stipulates a one-time payment of royalties and no follow-up services are provided, it shall be deemed to be the sale of the asset - one-time recognition of revenue; Where Bi Xun provides follow-up services, the revenue shall be recognized in installments within the validity period specified in the contract or agreement.

If the contract or agreement provides for the collection of royalties in installments, the revenue shall be recognized in installments according to the time and amount of collection specified in the contract or agreement or the amount of fees specified in the contract.