In the course of daily operations, enterprises sometimes need to sell or transfer intangible assets due to various factors. How should the accounting be handled when a company disposes of intangible assets?

Accounting entries for the disposal of intangible assets

The disposal of intangible assets includes transfer, free transfer and external donation of intangible assets. The specific accounting entries are as follows:

Debit: bank deposit (based on the actual amount received)

Accumulated amortization (based on the accumulated amortization that has been provided)

Provision for impairment of intangible assets (based on the accumulated amortization that has been provided) Provision for impairment)

Non-operating expenses - losses on disposal of non-current assets (by debit balance)

Credit: intangible assets (by book balance of intangible assets)

Taxes payable - income tax payable (sales price × income tax rate)

Non-operating income - gains from disposal of non-current assets (according to credit difference)

What is Intangible assets?

Refers to identifiable non-monetary assets that do not have a physical form. Intangible assets in a broad sense refer to monetary funds, financial assets, long-term equity investments, patent rights, trademark rights, etc. However, intangible assets are usually understood in a narrow sense in accounting, that is, intangible assets in accounting refer to patent rights, trademark rights, etc. . Transferring intangible assets refers to the act of transferring ownership or use rights of intangible assets. Common transfers of intangible assets include transfer of land use rights, transfer of trademark rights, transfer of patent rights, etc.

Intangible assets held by an enterprise usually originate from contractual rights or other legal rights, and the contract or law has a clear service life, and its service life does not exceed the number of years specified in the contract or law. If contractual rights or other legal rights can be extended upon expiration through contract renewal, and there is evidence that the enterprise does not need to pay a large cost to renew the contract, the renewal period should be included in the useful life.