1. Review whether the confirmation of intangible assets is accurate

With the in-depth development of my country's socialist market economy, intangible assets account for an increasing proportion of corporate assets. Accurate confirmation is a primary issue when auditing intangible assets.

(1) Whether the concept of intangible assets in auditing is accurately grasped

The new standards stipulate that “intangible assets refer to identifiable non-monetary assets that have no physical form and are owned or controlled by an enterprise. "This reflects the three basic characteristics of intangible assets: "no physical form", "identifiable" and "non-monetary assets".

When conducting an audit, pay special attention to whether unidentifiable intangible assets are separated from the intangible assets standards, and whether the company is not allowed to recognize self-generated goodwill, internally generated brands, newspaper names, etc. as intangible assets. Already recognized as intangible assets.

When performing the audit, pay attention to whether the identifiability standard in the definition of intangible assets has been implemented, that is, the assets meet one of the following conditions: First, they can be separated or divided from the enterprise, and can be separated or separated from each other. Related contracts, assets or liabilities together for sale, transfer, licensing, lease or exchange. The second is derived from contractual rights or other legal rights, regardless of whether these rights can be transferred or separated from the enterprise or other rights and obligations. When reviewing the identifiability of intangible assets, unidentifiable self-generated goodwill should be excluded. Regarding the standard of legibility, the new standards stipulate the above two situations. The first case shows that if the asset is divisible, it is identifiable. However, divisibility is a sufficient condition for identifiability, not a necessary condition. In addition to identifiability, enterprises can also identify assets in other ways, which is what the second situation points out. The new standards adopt a summary method instead of the original enumeration method, laying an institutional foundation for expanding the scope of recognition of intangible assets. The identifiability requirements and qualifying conditions for intangible assets in the new standards clearly reflect the international convergence of my country's accounting standards.

Note when conducting an audit: When an enterprise determines whether the economic benefits generated by intangible assets are likely to flow in, it should make reasonable estimates of the various economic factors that may exist within the expected service life of the intangible assets, and there should be Clear evidence support. This requires that when an enterprise recognizes intangible assets or re-evaluates the value of intangible assets, it should judge that the probability of its economic benefits flowing into the enterprise is more than 50%, and there should be conclusive evidence (such as contracts or agreements, operating income indicators, etc.). Otherwise, the enterprise cannot recognize it as an intangible asset, or the book value of the intangible asset will be written off. Therefore, during the audit, whether the company fully considers the principle of prudence, reasonably estimates the inflow of economic benefits, and ensures the authenticity of the value of intangible assets.

(2) Audit whether the scope of application is clear

Review whether the enterprise has implemented the classification of intangible assets into intangible assets with a definite service life and intangible assets with an indefinite service life based on their useful life. New rules for assets. Examine whether the enterprise divides intangible assets into patent rights, non-patented technology, trademark rights, copyrights, franchise rights, land use rights, etc. in terms of economic content.

When conducting audits, pay special attention to whether goodwill formed in business mergers, interests in oil and gas mining areas, and land use rights as investment real estate are included in the intangible asset standards. Due to the particularity of the recognition, measurement, presentation or disclosure of these items, they are different from the recognition, measurement, presentation or disclosure of intangible assets and need to be regulated separately. First, it is difficult to make a scientific and reasonable estimate of the economic benefits related to these assets flowing into the enterprise; second, the expenditures incurred when these projects were self-created have already been included in the current profits and losses. If it is included in intangible assets, its value cannot be amortized.

2. Review whether the standard for initial measurement of intangible assets is standardized

Review whether the enterprise initially measures intangible assets at cost. The composition of intangible assets obtained from different sources is also different.

(1) Self-created intangible assets

When conducting an audit, review whether the enterprise divides the process of self-created intangible assets into two stages, namely the research stage and the development stage. Research refers to original planned investigation conducted to acquire and understand new scientific or technical knowledge. Development refers to the application of research results or other knowledge to a plan or design before commercial production or use to produce new or substantially improved materials, devices, products, etc. When conducting an audit, review whether the enterprise includes the expenditures in the research phase of the enterprise's internal research and development projects into the current profit and loss when incurred; whether the expenditures in the development phase of the enterprise's internal research and development projects can simultaneously meet the five conditions listed in the new standards. Capitalized and included in intangible assets.

1. Did the audit exceed the original standards for intangible assets independently researched and developed by enterprises? The research and development expenses are recognized as current expenses when incurred, and are only incurred when applying for acquisition in accordance with the law. Registration fees, attorney fees, etc. are included in the relevant provisions of the value of intangible assets. Whether to implement the provisions of the new standards when conducting audits. Only if these provisions are implemented can enterprises increase their enthusiasm for independent innovation, improve their scientific and technological content, and take into account the long-term interests of the enterprise.

2. Whether the expenditure processing principles in the development phase are implemented when conducting audits. During the audit, whether the company implemented the new standards stipulates that expenditures in the development phase can only be capitalized when they meet specific conditions. The theoretical basis is that research and development are very different in nature. Development is a key stage of research and development, and its success is Sexuality is significantly improved. Specifically, during the audit, the expenditures incurred during the development phase of internal research and development projects must meet the following conditions at the same time before they can be recognized as intangible assets: ① It is technically feasible to complete the intangible asset so that it can be used or sold; ② It is feasible to complete the project The intention to use or sell the intangible asset; ③ The way in which the intangible asset generates economic benefits includes being able to prove that there is a market for the products produced using the intangible asset or that the intangible asset itself has a market. If the intangible asset will be used internally, its usefulness must be proven ④ Have sufficient technical, financial and other resource support to complete the development of the intangible asset and have the ability to use or sell the intangible asset; ⑤ Expenditures attributable to the development stage of the intangible asset can be measured reliably.

(2) If the purchase price of intangible assets is deferred beyond normal credit conditions and is essentially financing in nature, the cost of the intangible assets shall be determined based on the present value of the purchase price

Implementation The difference between the actual price paid and the present value of the purchase price will be reviewed during the audit. Except for those that should be capitalized in accordance with the "Accounting Standards for Business Enterprises No. 17 - Borrowing Costs", it should be included in the current profit and loss during the credit period. Intangible assets acquired through financing are measured at their present value, fully considering the discount rate of future payables, reflecting the time value of money, and making the book value of intangible assets more comparable and authentic.

When conducting an audit, confirm whether the present value of the purchase price and the discount rate of future payables are objective, true and comparable, and whether they objectively reflect the time value of money.

(3) The cost of intangible assets acquired through other means, including non-monetary asset exchanges, debt restructuring and business mergers, shall be measured at the fair value of the intangible assets at the time of acquisition

In addition, the cost of intangible assets invested by investors shall be determined according to the value stipulated in the investment contract or agreement, unless the value stipulated in the contract or agreement is unfair.

Whether fair value is appropriately used to measure intangible assets when performing audits not only promotes the convergence of my country's accounting standards and international accounting standards, but also overcomes the limitation that historical cost measurement only provides past information and cannot reflect the true value of assets. , when investors judge that the company's prospects are more relevant for decision-making, whether the initial issuance of stocks has been canceled and intangible assets invested by investors should be regarded as the actual cost according to the book value of the investor of the intangible assets during the audit.

3. Review whether the subsequent measurement of intangible assets is objective

(1) Review the amortization basis, amortization method and amortization scope of intangible assets

1 .Review whether the amortization basis of intangible assets is standardized

Review whether the company has implemented the new standards, that is, the amortization basis of intangible assets can be the service life of the intangible assets, or it can be the workload within the service life . Examine whether the enterprise will treat intangible assets that cannot foresee the period during which they will bring economic benefits to the enterprise as intangible assets with an indefinite useful life, and their value will not be amortized.

During the audit, did the enterprise only stipulate the accounting treatment of intangible assets with limited useful lives, and did not add accounting treatment regulations for intangible assets with indefinite useful lives.

2. Review whether the amortization method and accounting treatment of intangible assets are appropriate

Review whether the enterprise will use the amortization amount of intangible assets with limited service life to be systematic and reasonable within the service life. Amortization. Review whether the company has appropriately selected the amortization method, that is, the company can use either the straight-line method, the declining balance method, or the workload method to amortize intangible assets, but the amortization method selected should reflect the economic benefits related to the intangible asset. The expected realization method; if the expected realization method cannot be reliably determined, the straight-line method should be used for amortization. The amortization method of intangible assets during the audit: Whether the enterprise has not changed the practice of "average amortization in installments" in the original standards.

To review whether the enterprise generally includes the amortization amount of intangible assets in the current profit and loss. When conducting audits, attention should be paid to: an intangible asset is specifically used to produce a certain product or other assets, and the economic value it contains The benefits are realized by being transferred to the products or other assets produced. Whether the amortization of the intangible assets is included in the cost of the related assets.

When performing an audit, attention should be paid to: After the promulgation of the new standards, whether a separate "accumulated amortization" account is set up for the amortization of intangible assets to reflect the amortization of intangible assets, and whether the accounting treatment is correct, that is: debit Accounts such as administrative expenses or manufacturing overhead; credit accumulated amortization account.

3. Review whether the amortization scope of intangible assets is accurate

During the audit, whether the enterprise amortizes intangible assets shall be based on the period from the time when the intangible assets are available for use until they are no longer regarded as intangible assets. New provisions for amortization over the limited useful life ending at the time of recognition. During the audit, whether the enterprise systematically and reasonably amortizes intangible assets with limited useful lives over their useful lives, while intangible assets with indefinite useful lives should not be amortized.

During the audit, did the company still adopt the original standard’s approach of “average amortization over the estimated useful life starting from the month of acquisition”? It did not emphasize amortization from “when available for use” and did not reflect the economic essence. .

During the audit, whether the enterprise still implements the old standards that stipulate that intangible assets should be amortized within the expected useful life, the income life specified in the contract, or the effective life specified by law. If the number of years is not specified, the amortization period shall not be Should be more than 10 years.

During the audit, whether the company made the mistake of amortizing intangible assets with indefinite useful lives during the holding period.

4. Review whether the determination of the residual value of intangible assets is standardized.

Review whether the enterprise has clearly defined the standards for confirming the residual value of intangible assets. When examining whether an enterprise has intangible assets with a limited useful life, its residual value should be considered zero. Except when a third party purchases the intangible asset at the end of its useful life or the estimated residual value information can be obtained based on an active market, and the market is likely to exist at the end of the intangible asset's useful life.

(2) Review and review whether the service life and amortization method of intangible assets are appropriate

Review whether the company has implemented the new standards in accordance with the "Enterprises should at least at the end of each year, for limited service life "Review the useful life and amortization method of intangible assets". During the review, once it is discovered that the useful life and amortization method of the intangible asset are different from the previous estimates, the amortization period and amortization method should be changed. In addition, review whether the enterprise has implemented the requirement that "the enterprise shall review the useful life of intangible assets with indefinite useful lives in each accounting period" in accordance with the new standards.

If there is evidence that the useful life of an intangible asset is limited, whether the useful life has been estimated and treated according to the new standards.

When conducting an audit, review whether the company's accounting treatment is more in line with the current economic reality and whether it reflects the amortization and book value of intangible assets more objectively.

(3) Review and review whether the provision for impairment of intangible assets and accounting treatment are standardized

When conducting an audit, review whether the enterprise has implemented the "Asset Impairment" standards. On the balance sheet date, it should be judged whether there are signs that the assets may be impaired. If there are signs of impairment of an asset, an impairment test is conducted to estimate the recoverable amount of the asset. When conducting the audit, review whether the enterprise has made impairment provisions based on the amount where the recoverable amount is lower than the book value; whether the recoverable amount and book value are confirmed objectively and truthfully; when conducting the audit, review whether the enterprise has implemented the provisions of the new standards, Once the impairment loss of intangible assets is recognized, it cannot be reversed in subsequent accounting periods.

When conducting an audit, special attention should be paid to whether the provisions of the original standards that the impairment loss of intangible assets can be reversed have been cancelled, whether the use of impairment reserves as "secret reserves" to adjust profits has been effectively curbed, and whether it is beneficial to Improve the quality of accounting information.

(4) Review and review whether the scrapping of intangible assets is objective

Review and review whether the scrapping of intangible assets is in accordance with the new standards. If the intangible assets are not expected to bring economic benefits to the enterprise, explain that the intangible assets If the asset has been replaced by other new technologies, it should be scrapped and written off, and its book value should be transferred to current profits and losses.

Review and review whether the scrapping of intangible assets has undergone standardized accounting treatment in accordance with the new standards. When written off, the "accumulated amortization" account should be debited according to the accumulated amortization that has been provided; according to its book value The balance is credited to the "intangible assets" account; the difference is debited to the "non-operating expenses" account. If impairment provisions have been made, impairment provisions should also be carried forward at the same time.

IV. Review whether the disclosure of intangible assets is complete

Review whether the company discloses the following information related to intangible assets in the notes according to the category of intangible assets as required by the new standards: Review whether the company discloses The opening and closing book balances of intangible assets, the accumulated amortization amount and the accumulated amount of impairment provisions; review whether the company discloses intangible assets with limited service life, the estimation of their service life, and the intangible assets with indefinite service life, whose service life is indefinite. Determine the basis for judgment; review whether the company discloses the amortization method of intangible assets; review whether the company discloses the book value of intangible assets used for guarantees, current amortization, etc.; review whether the company discloses the amount included in current profits and losses and recognized as intangible assets Amount of research and development expenditures. Therefore, during the audit, whether the information disclosed by the company in accordance with the requirements of the new standards is more specific and sufficient, whether this information will provide investors with more useful decision-making information, and whether it will help users of accounting information understand the quality of the company's intangible assets.

During the audit, it is examined whether the enterprise still discloses only the following information related to intangible assets in accordance with the requirements of the original standards: the amortization life of various intangible assets, the opening and closing book balances, changes and The reason is the impairment provision for intangible assets recognized in the current period.