Intangible assets generated by enterprises generally include patent rights, trademark rights, etc. How should the accounting treatment be done for the income from the disposal of intangible assets?
How to account for the income from the disposal of intangible assets?
Debit: bank deposits
Accumulated amortization
Provision for impairment of intangible assets
Credit: intangible assets
Taxes payable - Value-added tax payable - Output tax
Profits and losses from asset disposal
Provision for impairment of intangible assets is required by the enterprise at the end of the period due to obsolete, damaged, long-term technology For intangible assets whose recoverable amount is lower than their book value due to idleness or other reasons, provision for impairment of intangible assets should be made.
What are asset disposal gains and losses?
"Profits and losses from asset disposal" is a newly added accounting account, which is mainly used to calculate the gains or losses from the disposal of fixed assets, intangible assets, etc. due to sales, transfers, etc. Gains and losses on asset disposals affect operating profits.
Profits and losses from asset disposal are directly included in the gains or losses of the current period. It is a profit and loss account. If a net loss on disposal occurs, "Profit and Loss on Asset Disposal" will be debited. If it is a net income, "Profit and Loss on Asset Disposal" will be credited.
The difference from non-operating expenses is:
If the asset still has use value after disposal, it will be included in the "Profit and Loss from Asset Disposal" account, otherwise, it will be included in "Non-operating expenses" suject. For example, if a fixed asset is damaged and scrapped and no longer has use value, the "non-operating expenses" account will be used. If fixed assets are used to pay off debts, invest, donate, etc., and these business activities are in exchange for consideration and have certain commercial value, they should be included in the "Profit and Loss from Asset Disposal" account.