What accounts are included in the amortization of intangible assets?

Answer: The amortization of intangible assets should be included in different accounts according to the different uses of the intangible assets. If it is for self-use, it will be included in management expenses; if it is rented, it will be included in other business costs; if it is used exclusively to produce products, it will be included in manufacturing expenses or production costs.

How to make accounting entries for amortization of intangible assets?

Debit: management expenses (when used for own use)

Other business costs (when rented)

Manufacturing overhead/production costs, etc. (specifically used to produce products)

Credit: Accumulated amortization

What is the start and end time of amortization of intangible assets?

Answer: The amortization period of intangible assets begins when they are available for use and ends when they are derecognized. Intangible assets shall be systematically and reasonably amortized within the expected useful life in the month of acquisition, and intangible assets shall not be amortized in the month of disposal.

It can be understood this way: for intangible assets that increase in the current month, amortization will begin in that month, and intangible assets that decrease in the current month will no longer be amortized in that month.

What are the contents of intangible assets?

Answer: Intangible assets specifically include patents, non-patented technologies, copyrights, trademarks, franchises, etc.

1. Patent rights

Patent rights can be divided into two types, namely invention patents, utility model patents and design patents. The term of invention patents is 20 years, while the term of utility model and design patents is 10 years.

2. Non-patented technology

Non-patented technology has only an economically effective life.

3. Copyright

Copyright is also called copyright, including moral rights (personal rights) and economic rights (property rights). Specifically, it refers to certain special rights that authors enjoy by law over their literary, scientific and artistic works.

4. Trademark rights

Trademark rights are a reflection of corporate reputation and have certain economic value. According to relevant regulations, the validity period of a registered trademark is 10 years.

5. Franchise

Franchise, we also call it franchise and franchise.