Recognition of intangible assets refers to recording items that meet the conditions for recognition of intangible assets as intangible assets of the enterprise and including them in the enterprise's balance sheet. The intangible assets standards stipulate that an enterprise can recognize an intangible asset only when it meets the following two conditions: (1) the economic benefits generated by the asset are likely to flow into the enterprise; (2) the cost of the asset can be measured reliably. In other words, for a project to be recognized as an intangible asset, it must first meet the definition of intangible assets, and secondly, it must meet the above two conditions. 1. Complying with the definition of intangible assets One of the important manifestations of complying with the definition of intangible assets is that the enterprise can control the economic benefits generated by the intangible assets. Although this is a characteristic of general corporate assets, it is particularly important for intangible assets. Generally speaking, if an enterprise has the right to obtain the economic benefits generated by an intangible asset, and at the same time can restrict others from obtaining these economic benefits, it means that the enterprise controls the intangible asset, or controls the economic benefits generated by the intangible asset. The specific manifestation is that the enterprise has legal ownership of the intangible assets, or the enterprise has signed an agreement with others, so that the relevant rights of the enterprise are protected by law. For example, after an enterprise obtains patented technology developed by itself through application and in accordance with the law, it will have legal ownership of the patented technology within a certain period of time. Another example is when a company signs a contract with another company to allow them to use its trademark rights within a certain period of time. Due to the signing of the contract, the relevant rights of the transferee of the trademark use right are protected by law. On the contrary, if the control rights owned by the enterprise are not recognized through legal means or contracts, it means that the relevant projects do not meet the definition of intangible assets. For example, a company may have a skilled workforce and determine that further training will improve their skills. In this case, companies can expect that employees will continue to contribute their skills to the company. However, a business generally cannot exercise sufficient control over the expected future economic benefits arising from having a skilled workforce and training them to be considered to meet the definition of an intangible asset. For similar reasons, specific managerial or technical talents are unlikely to meet the definition of intangible assets unless the utilization of those managerial or technical talents, and the anticipated future economic benefits derived therefrom, are protected by statutory rights. For another example, an enterprise may have certain customers or market share and have made efforts to establish good customer relationships and trust, thereby expecting these customers to continue doing business with it. However, because of the lack of legal rights to protect or lack of other means to control such customer relationships or customer trust in the enterprise, the enterprise generally cannot exercise sufficient control over the economic benefits generated by such customer relationships and customer trust, and thus cannot consider these Items (market share, good customer relationships and customer trust) meet the definition of intangible assets. 2. The economic benefits generated are likely to flow into the company's practices. To determine whether the economic benefits created by intangible assets are likely to flow into the company, professional judgment is required. In exercising this judgment, relevant factors need to be considered. For example, whether the company has sufficient human resources, high-quality management team, related hardware equipment, related raw materials, etc. to cooperate with intangible assets to create economic benefits for the company. Of course, the most important thing to pay attention to is the influence of external factors, such as whether there are relevant new technologies and new products that impact the technology related to intangible assets or the market for the products on which they are produced. In short, when making judgments, the management of an enterprise should make robust estimates of various factors that will exist within the expected useful life of intangible assets. 3. Costs can be measured reliably. Costs can be measured reliably, which is a basic condition for asset recognition. For intangible assets, this condition is very important. An enterprise's self-generated goodwill meets the definition of intangible assets, but the expenditures incurred in the process of forming self-generated goodwill are difficult to measure and therefore cannot be recognized as an enterprise's intangible assets. For another example, it is assumed that the scientific and technological talents of some high-tech enterprises have signed a service contract with the enterprise, and the contract stipulates that they cannot provide services to other enterprises within a certain period of time.