Intangible assets purchased by an enterprise generally refer to trademark rights, patent rights, etc. For intangible assets, amortization should be carried out according to regulations. How should the accounting be done when amortizing intangible assets?

How to account for the amortization of the company’s intangible assets?

When intangible assets are amortized, their amortization amount is included in the administrative expenses-intangible assets amortization account. Generally speaking, they are divided into the following two types:

If the unit implements the new accounting standards, the entries for actual amortization:

Debit: administrative expenses - amortization of intangible assets< /p>

Credit: Accumulated amortization. If the unit does not implement the new accounting standards:

The actual amortization entry will be:

Debit: administrative expenses - amortization of intangible assets

Credit: intangible Assets

Amortization of intangible assets means that enterprises should analyze and judge their useful lives when acquiring intangible assets. Intangible assets with finite useful lives should be amortized. The residual value of an intangible asset with a limited useful life should be considered zero. Intangible assets with limited service life shall be amortized from the month they are available for use (that is, they reach their intended use), and shall not be amortized in the month of disposal. Amortization methods for intangible assets include straight-line method, total production method, etc.

Accumulated amortization is used to amortize intangible assets. The balance is generally on the credit side, and the credit side registers the accumulated amortization that has been provided. The accumulated amortization account is an asset account and is used to calculate the amortization of intangible assets. Listed under assets on the balance sheet as a deduction from intangible assets. Accumulated amortization only belongs to the adjustment account of intangible assets, and the registration direction is opposite to that of intangible assets.

Intangible asset sales entry

When selling, the difference between the price obtained and the book value of the intangible asset and related taxes shall be included in the current profit and loss (asset disposal profit and loss):

p>

Debit: bank deposits

Provision for impairment of intangible assets

Accumulated amortization

Credit: intangible assets

Should Pay taxes - value-added tax payable (output tax)

Profits and losses from asset disposal (difference, or debit)

When it is expected that it will not bring future economic benefits to the enterprise, it should be The book value of intangible assets is written off and included in current profits and losses (non-operating expenses).

Debit: Non-operating expenses

Provision for impairment of intangible assets

Intangible assets belong to the asset category. Intangible assets refer to things that have no physical form owned or controlled by the enterprise. of identifiable non-monetary assets. Intangible assets include patent rights, non-patented technologies, trademark rights, copyrights, land use rights, franchise rights, etc.