How are intangible assets amortized? Can intangible assets not be amortized?

In business activities, the amortization amount of intangible assets calculated according to the regulations can be deducted in the calculation of taxable income. The amortization of intangible assets shall be calculated using the straight-line method. If the useful life of an intangible asset is agreed in the agreement or contract, it may be amortized in installments according to the useful life agreed in the agreement or contract.

If there is no agreed period, the amortization period shall not be less than 10 years. Intangible assets that have been deducted before tax for self-created goodwill and self-development expenses are not allowed to be amortized. The expenses for the purchase of goodwill shall not be amortized, but may be deducted when the enterprise is transferred or liquidated as a whole.

The existing intangible assets of the enterprise should be amortized, and if they are not amortized, the enterprise will suffer unnecessary losses.

The amortizable amount of an intangible asset is the amount of its cost after deducting the estimated residual value. For intangible assets for which provision for impairment has been made, the cumulative amount of provision for impairment of intangible assets shall also be deducted. The residual value of an intangible asset with a finite useful life shall be deemed to be zero, except in the following cases:

1) There is a third party undertaking to purchase the intangible asset at the end of its useful life;

2) Estimated residual value information can be obtained based on an active market, and this market is likely to exist at the end of the useful life of the intangible asset.

The period of amortization of intangible assets by an enterprise shall start from the time when the intangible assets are available for use and end when they are no longer recognized as intangible assets.

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.

Intangible assets with a limited useful life should be amortized, and those with an uncertain useful life should not be amortized.

Intangible assets with a limited useful life shall be amortized from the month in which they are available for use, and shall not be amortized in the month of disposal. Intangible assets with indefinite useful lives are not amortized, and impairment tests are carried out at the end of each period, and provision for impairment occurs when there is an indication of impairment.

The amortization method of intangible assets chosen by the enterprise should reflect the expected realization of the economic benefits related to the intangible assets. The amortization methods of intangible assets include the average method of life (i.e., the straight-line method), the total production method, etc. The increase in intangible assets in the current month begins to be amortized in the current month, and the decrease in the current month ceases to be amortized in the current month.

In addition, if it is not possible to reliably determine the expected realization method, the straight-line method should be used for amortization.

Accounting treatment of amortization of intangible assets:

Debit: Administrative expenses (intangible assets for management).

Other operating costs (leased intangible assets).

manufacturing expenses, etc. (economic benefits realized through the resulting products or other assets).

Credit: Accumulated amortization.

Yes. Amortization of intangible assets is a method of amortizing the original price of an intangible asset over its useful life. The amortization of intangible assets generally adopts the straight-line method, and the amortization is directly credited to the debit side of the "intangible assets" account, and there is no need to set up a separate amortization account.

1. Intangible assets with a limited useful life in the amortization scope should be amortized, and their residual value is usually regarded as zero.

Intangible assets with an indefinite useful life should not be amortized, but an impairment provision should be made.

2. Amortization time: The enterprise shall amortize the intangible assets on a monthly basis. Intangible assets with a limited useful life should be amortized from the month in which they are available for use (i.e., they reach their intended use) and shall not be amortized in the month of disposal.

3. The amortization amount of intangible assets that go to the enterprise's own use 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.

Accounting entries for the amortization of intangible assets.

1. The amortization of intangible assets is generally included in the current profit and loss, and the intangible assets for self-use are included in management expenses;

Borrow: Administrative expenses.

Credit: Accumulated amortization.

2. If it is leased, it will be included in other business costs;

Borrow: Other operating costs.

Credit: Accumulated amortization.

3. There is another situation: if the economic benefits contained in the intangible assets are realized through the products produced, then the cost of the products should be included.

Credit: Accumulated amortization.

Note:1The amortization of intangible assets is only carried out on intangible assets with a definite useful life, and the intangible assets with an uncertain useful life are only tested for impairment and not amortized.

2.The amortization strategy is determined, similar to the depreciation strategy for fixed assets;

3.The purchased intangible assets shall be amortized from the period of acquisition, and shall not be amortized for the current period when they are derecognized.

Intangible assets shall be amortized in equal installments over the expected useful life from the month in which they are acquired, and shall be included in profit or loss.

1) If the contract stipulates the benefit period but the law does not stipulate the effective period, the amortization period shall not exceed the benefit period specified in the contract;

2) If the contract does not stipulate the benefit period but the law stipulates the effective period, the amortization period shall not exceed the effective period prescribed by law;

3) If the contract stipulates the beneficial period and the law also stipulates the effective period, the amortization period shall not exceed the shorter of the beneficial period and the effective period.

The tax law stipulates that the amortization period of intangible assets shall not be less than 10 years.

The accounting entries are as follows:

Borrow: Administrative expenses - amortization of intangible assets.

Credit: Accumulated amortization.

What is amortization of intangible assets? How are intangible assets amortized? Amortization method of intangible assets.

1. If your unit implements the new accounting standards, amortization entries:

Borrow: Administrative expenses - amortization of intangible assets.

Credit: Accumulated amortization.

2. If your unit has not implemented the new accounting standards, amortization entries:

Borrow: Administrative expenses - amortization of intangible assets.

Credit: Intangible assets.

Not all intangible assets need to be amortized, and those whose useful life cannot be determined do not need to be amortized.

Borrow: asset impairment loss - * intangible assets.

Credit: Provision for impairment of intangible assets**Intangible assets.

1.Financial Treatment: 15The cost of intangible assets should be amortized in equal installments over the expected useful life from the month in which they were acquired.

1) If the contract stipulates the benefit period but the law does not stipulate the effective period, the amortization period shall not exceed the benefit period;

2) If the contract does not stipulate the benefit period but the law stipulates the effective period, the amortization period shall not exceed the effective period;

3) If the contract stipulates the beneficial period and the law also stipulates the effective period, the amortization period shall not exceed the shorter of the beneficial period and the effective period.

If the contract does not stipulate the benefit period, and the law does not stipulate the effective period, the amortization period should not exceed 10 years.

2.Tax treatment of intangible assets:

Tax treatment of intangible assets:

1) Intangible assets refer to assets that are used by taxpayers for a long time but do not have a physical form, including patent rights, trademark rights, copyrights, land use rights, non-patented technologies, goodwill, etc.

Rule 29.

2) Intangible assets shall be valued at the actual cost at the time of acquisition, which shall be determined differently:

1. The intangible assets invested by the investor as capital or cooperation conditions shall be valued according to the amount agreed in the appraisal or contract or agreement.

2. The purchased intangible assets shall be valued according to the actual price paid.

Rule 32.

3. The value of the intangible assets purchased by the taxpayer, including the purchase price and related expenses incurred in the process of purchase.

4. Taxpayers who develop intangible assets on their own shall accurately collect the research and development expenses, and if they have been directly deducted as research and development expenses when they occur, the intangible assets shall not be amortized in installments when they are used.

Article 28 of Guo Shui Fa [2000] No. 84.

5. Intangible assets developed by oneself and obtained in accordance with the law shall be valued according to the actual expenditure in the development process.

6. The intangible assets donated shall be valued according to the amount listed in the invoice or the market value of the same type of intangible assets.

Rule 32.

3) Intangible assets shall be amortized using the straight-line method.

For the intangible assets transferred or invested, if the law and the contract or the enterprise application respectively stipulate the validity period and the benefit period, it shall be amortized according to the principle of the shorter of the statutory validity period and the benefit period specified in the contract or enterprise application; If the law does not stipulate the service life, it shall be amortized according to the benefit period of the contract or enterprise application; If the law and contract or the enterprise application do not stipulate the service life, or the intangible assets developed by themselves, the amortization period shall not be less than 10 years.

Rule 33.

4) The software attached to the computer hardware purchased by the taxpayer shall be incorporated into the computer hardware as fixed asset management if it is not separately valued; Separately denominated software should be treated as intangible asset management.

Article 30 of Guo Shui Fa [2000] No. 84.

Therefore, if the financial regulations are inconsistent with the provisions of the tax law, the tax adjustment shall be made at the time of final settlement at the end of the year.

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.

1) Tax basis of intangible assets Intangible assets follow the principle of historical cost and are valued at the actual cost at the time of acquisition, which should be determined differently according to the specific circumstances: 1For purchased intangible assets, the purchase price and customs fees paid, as well as other expenses directly attributable to the use of the assets for their intended purposes, shall be the basis for taxation; 2.

For self-developed intangible assets, the tax basis shall be the expenditure incurred during the development process after the asset meets the conditions for capitalization and before the intended use is achieved; 3.Intangible assets acquired through donations, investments, non-monetary asset exchanges, debt restructuring, etc., shall be calculated on the basis of the fair value of the assets and the relevant taxes and fees paid. (2) Amortization method Intangible assets shall be amortized by the straight-line method.

Special attention should be paid to:1Goodwill shall not be amortized in installments; The expenses for the purchase of goodwill are allowed to be deducted when the enterprise is transferred or liquidated as a whole.

2.If the taxpayer develops intangible assets on his own, he or she shall prepare for the pure collection of research and development expenses, and if they have been directly deducted as research and development expenses when they occur, the intangible assets shall not be amortized in installments when they are used. 3.

The cost of intangible assets shall be amortized in equal installments over the expected useful life from the month in which they are acquired, and shall not be amortized in the month in which the intangible assets are disposed of. That is, the start and stop dates of amortization of intangible assets are the current month. The intangible assets added in the current month are amortized in the current month; The intangible assets that are reduced in the current month are no longer amortized in the current month.

4.The salvage value of an intangible asset should be zero. (3) Amortization period (1) The amortization period of intangible assets shall generally not be less than 10 years, (2) As an intangible asset for investment or transfer, if the relevant laws and regulations or the contract stipulate the service life, it may be amortized in installments in accordance with the provisions or agreed service life.

That is, except for intangible assets acquired through investment or transfer, the amortization, alteration and dismantling period of intangible assets shall not be less than 10 years; If the useful life of an intangible asset acquired through investment or transfer is stipulated in the relevant laws or contracts, it may be amortized in installments in accordance with the provisions or agreed service life, that is, the amortization period may be less than 10 years. (4) Provisions on non-amortization The following intangible assets shall not be deducted from amortization expenses: (1) Intangible assets whose self-developed expenses have been deducted in the calculation of taxable income; (2) self-created goodwill; (3) intangible assets unrelated to business activities; (4) Other intangible assets that are not subject to amortization expense deduction.

Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China

Article 67.

Amortization expenses of intangible assets calculated on the straight-line basis are allowed to be deducted.

The amortization period of intangible assets shall not be less than 10 years.

If the useful life of an intangible asset is stipulated in the relevant laws or contracts as an investment or transfer, it may be amortized in installments in accordance with the provisions or agreed useful life.

The expenses of purchased goodwill are allowed to be deducted when the enterprise is transferred or liquidated as a whole.