IntangibleAssets refer to identifiable non-monetary assets that have no physical form and are owned or controlled by enterprises. Intangible assets can be divided into broad sense and narrow sense. The broad sense of intangible assets includes monetary funds, financial assets, long-term equity investment, patent rights, trademark rights, etc. Because they have no physical entities, they are manifested as some legal rights or technologies.

however, intangible assets are usually understood in a narrow sense in accounting, that is, patent rights and trademark rights are called intangible assets. Self-created goodwill and internally generated brands are not intangible assets.

An intangible asset can only be recognized if it meets the following conditions:

1. The economic benefits related to the intangible asset are likely to flow into the enterprise;

as an intangible asset, a project must have the condition that the economic benefits of its production are likely to flow into the enterprise. Because the most basic feature of assets is that the expected economic benefits generated are likely to flow into the enterprise, if the expected economic benefits generated by a project cannot flow into the enterprise, it cannot be recognized as the assets of the enterprise.

2. The cost of this intangible asset can be measured reliably.

The self-created goodwill of an enterprise and the internally generated brands, newspaper names, etc. should not be recognized as intangible assets because their costs cannot be reliably measured.

Extended information

Accounting Standards for Business Enterprises No.6-Intangible Assets

Article 9 Only when the following conditions are met can the expenditures in the development stage of internal research and development projects be recognized as intangible assets:

(1) It is technically feasible to complete the intangible assets so that they can be used or sold;

(2) It has the intention to complete the intangible asset and use or sell it;

(3) the way in which intangible assets generate economic benefits, including the ability to prove that the products produced by using the intangible assets exist in the market or the intangible assets themselves exist in the market, and the intangible assets will be used internally, and its usefulness shall be proved;

(4) having sufficient technical, financial and other resources to support the development of the intangible asset, and having the ability to use or sell the intangible asset;

(5) The expenditure attributable to the development stage of the intangible assets can be measured reliably.

article 1 the expenditure incurred after the acquisition of an ongoing research and development project that has been confirmed as intangible assets by an enterprise shall be handled in accordance with the provisions of articles 7 to 9 of these standards.

article 11 the self-created goodwill of an enterprise and the internally generated brands, newspaper names, etc. shall not be recognized as intangible assets.

Baidu Encyclopedia-Intangible Assets

Baidu Encyclopedia-Accounting Standards for Business Enterprises No.6-Intangible Assets