intangible assets as investment or transferee, whose useful life has been stipulated in relevant laws or contracts, can be amortized by installments according to the stipulated or agreed useful life. The amortization period of intangible assets is usually from the time when they are available for use to the time when they are derecognized. That is, the start and stop dates of amortization of intangible assets are: the intangible assets added in the current month will be amortized in the current month. Intangible assets reduced in the current month shall not be amortized in the current month.

Amortization of intangible assets is a method to amortize the original price of intangible assets within its effective period. Amortization of intangible assets generally adopts the straight-line method, and it is directly included in the debit of the "intangible assets" account, and there is no need to set up another amortization account. The original price of intangible assets minus the balance of intangible assets is the cumulative amortization amount of intangible assets. In order to provide relevant data on the amortization amount of intangible assets of enterprises, enterprises should indicate the original price of each intangible asset when replacing old accounts.

according to the service life, intangible assets are divided into two categories: term intangible assets and indefinite intangible assets. The so-called term intangible asset, that is, with the use of the intangible asset, its service life will become shorter and shorter, and eventually it will no longer belong to an asset of the enterprise after a certain service life.

this service period is just as stipulated in the current accounting system. Such as patent right, non-patented technology, trademark right, copyright, land use right, etc. The so-called indefinite intangible assets mainly refer to those intangible assets that have no legal provisions, contract provisions, or recognized service life. And indefinite here is a relative concept, not absolute.

it refers to the indefinite period of an enterprise during its good operation. If the enterprise is facing bankruptcy, this relatively indefinite intangible asset will disappear. Such as the goodwill of the enterprise. For term intangible assets, with the use, it will be lower and lower in value like tangible assets such as fixed assets, so it can also be called value-declining intangible assets; For indefinite intangible assets, with the use, it will play a more and more important role, rather than value consumption, so this kind of intangible assets can also be called intangible assets with increasing value.

legal basis

article 67 of the regulations for the implementation of the enterprise income tax law of the people's Republic of China:

the amortization expenses of intangible assets calculated by the straight-line method are allowed to be deducted. The amortization period of intangible assets shall not be less than 1 years. As an investment or transferee of intangible assets, 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. Expenditure on purchased goodwill is allowed to be deducted when the enterprise is transferred or liquidated as a whole.