During the company's business operations, when using intangible assets for external investment, long-term equity investment accounts and intangible asset accounts can be set up for accounting. What are the relevant accounting entries?
Use intangible assets to process external investment entries
1. When there is a surplus in external investment at the appraisal price confirmed by both parties
Debit: long-term equity investment (external investment (based on the appraisal price confirmed by both parties)
Accumulated amortization
Credit: intangible assets (original value)
Non-operating income
2. When there is a loss in external investment at the appraisal price confirmed by both parties
Borrow: long-term equity investment (at the appraisal price confirmed by both parties when investing externally)
Accumulated amortization
Non-operating expenses
Credit: intangible assets (original value)
3. Accounting entries for sale of intangible assets
Debit: bank deposits
Provision for impairment of intangible assets
Accumulated amortization
Credit: Intangible assets
Taxes payable - Value-added tax payable (output tax )
Profits and losses from asset disposal
Intangible assets include social intangible assets and natural intangible assets. Among them, social intangible assets usually include patents, non-patented technologies, trademark rights, copyrights, franchises, land use rights, etc.; natural intangible assets include natural resources such as natural gas that do not have physical physical forms.
Amortization methods of intangible assets
Amortization methods of intangible assets include straight-line method, total production method, etc. Enterprises should analyze and judge the useful life of intangible assets when acquiring them. 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.