Generally, the amortization period of intangible assets shall not be less than 1 years. As an investment or transferee intangible asset, if the service life is stipulated in relevant laws or contracts, it can be amortized in installments according to the stipulated or agreed service life. That is, except for intangible assets acquired through investment or transferee, the amortization period of intangible assets shall not be less than 1 years.
II. Analysis
Intangible assets acquired through investment or transfer, if the service life is stipulated in relevant laws or contracts, can be amortized in installments according to the stipulated or agreed service life, that is, the amortization life can be less than 1 years, which is mainly based on the investment and transfer methods, and there are corresponding laws or contractual agreements between the two parties. In this case, for reasonable commercial purposes, As a user of intangible assets, the service life may be less than 1 years. If the amortization period of such intangible assets is not less than 1 years, it will not conform to the principle of matching income with expenditure and the actual production and operation activities of the enterprise. The service life of intangible assets includes legal life and economic life. Some intangible assets are limited by laws, regulations or contracts, which are called legal life. For example, the relevant laws in China stipulate that the validity period of invention patent right is 2 years, and the validity period of trademark right is 1 years. If the parties to the contract agree that the service life of intangible assets is 3 years, etc., in these cases, the amortization period should be subject to the provisions of the law or the contract. For example, if a patent right only has an effective protection period of 8 years, it is impossible for the transferee of intangible assets to use intangible assets for more than 8 years. If it is stipulated that its intangible assets must be amortized within a period of more than 1 years, this is obviously unreasonable and does not conform to the principle of matching income with expenditure.
3. What is the amortization of intangible assets?
Amortization of intangible assets is a method to amortize the original price of intangible assets within its effective period. Generally, the amortization of intangible assets adopts the straight-line method. When amortization, it is directly included in the debit of intangible assets, and there is no need to set up another amortization account.