The amortization life of intangible assets refers to the period during which an enterprise amortizes its costs year by year according to a certain time and method when using intangible assets. According to the provisions of the Accounting Standards for Business Enterprises, the amortization period of intangible assets should be determined based on their useful life, laws, contracts, industry practices and other factors.
Specifically, the following factors should be considered when determining the amortization life of intangible assets:
1. Useful life: The useful life of an intangible asset refers to the period during which the enterprise expects to be able to use the asset. . The length of useful life directly affects the amortization life of intangible assets. For example, if the expected useful life of an intangible asset is 10 years, its amortization period is generally 10 years.
2. Laws and regulations: The use period of some intangible assets is limited by laws and regulations, such as patent rights, trademark rights, etc. In this case, the amortization life of the intangible assets should be determined in accordance with laws and regulations.
3. Contract agreement: Intangible assets may be bound by contracts during use. For example, if the useful life of an intangible asset is stipulated in the contract as 5 years, its amortization period should be 5 years.
4. Industry practice: There may be differences in the amortization life of intangible assets in different industries. Enterprises should refer to industry practices and determine the amortization life of intangible assets based on actual conditions.
It should be noted that the amortization life of intangible assets should be determined when they are purchased or formed, and amortized in subsequent accounting treatments. Enterprises should reasonably determine the amortization life of intangible assets based on actual conditions to ensure that their accounting treatments are compliant and reasonable.
Legal basis:
Article 67 of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China" The amortization expenses of intangible assets calculated according to the straight-line method are allowed to be deducted.
The amortization period of intangible assets shall not be less than 10 years.
As an investment or transferred intangible asset, if the useful life is stipulated in relevant laws or contracts, it can be amortized in installments according to the prescribed or agreed useful life.
Expenditures for outsourced goodwill are allowed to be deducted when the entire enterprise is transferred or liquidated.