I. Definition and characteristics of intangible assets

Intangible assets refer to identifiable non-monetary assets that are owned or controlled by enterprises and have no physical form. It usually includes patent right, trademark right, copyright, non-patented technology, land use right, franchise right and so on. Intangible assets are intangible, exclusive, profitable and uncertain, which makes the measurement and evaluation of their value more complicated than tangible assets.

Second, the reasons for changes in the value of intangible assets

The value change of intangible assets is mainly influenced by technological progress, intensified market competition and changes in laws and regulations. With the continuous development of science and technology, new technologies or products may replace the original intangible assets, resulting in their value reduction. At the same time, the intensification of market competition may also challenge the exclusiveness of intangible assets and affect their value. In addition, changes in laws and regulations may also have an impact on the value of intangible assets.

Third, the accounting treatment of intangible assets

Because the value change of intangible assets is difficult to be accurately measured by depreciation, the depreciation of intangible assets is usually excluded in accounting treatment. On the contrary, enterprises will adopt appropriate methods to amortize or depreciate intangible assets according to their actual situation and service life. For example, for intangible assets with limited service life, enterprises can use straight-line method, workload method and other methods to amortize; Intangible assets with uncertain service life are not amortized, but impairment tests are conducted in each accounting period.

To sum up:

Intangible assets do not need depreciation, and their value changes are affected by many factors, so it is difficult to accurately measure them by depreciation. When dealing with intangible assets, enterprises should adopt appropriate methods for amortization or impairment according to their actual conditions and service life. At the same time, enterprises should also strengthen the management and protection of intangible assets in order to improve their efficiency and reduce risks.

Legal basis:

People's Republic of China (PRC) Accounting Standards for Business Enterprises

Article 6 provides that:

An enterprise shall take the items that meet the conditions for the recognition of intangible assets as intangible assets for accounting.

People's Republic of China (PRC) Accounting Standards for Business Enterprises

Article 38 provides that:

Intangible assets shall be initially measured at cost. The cost of outsourcing intangible assets includes the purchase price, related taxes and other expenses that can be directly attributed to making the assets reach the predetermined usable state.