Accounting Of Intangible Assets

With the accelerating pace of knowledge innovation, intangible assets are becoming more and more important in many enterprises in China.

Standardizing the accounting of intangible assets by enterprises, and providing accounting information for accounting of intangible assets is increasingly important.

Accounting for intangible assets.

The basic principles of intangible assets accounting are: when purchasing intangible assets, they are accounted for according to the actual cost paid as the actual cost; if they are self developed and applied in accordance with legal procedures, they shall be accounted for as the actual cost according to the registration fees and the lawyer's fees which are obtained according to the law, and the value of investment pfer shall be accounted for according to the provisions of the contract or the value recognized by the assessment.

Example: a unit buys a patent right to B unit, the price is 100 thousand yuan, the associated cost is 20 thousand yuan, and the bank deposit has been paid.

Borrow money: intangible assets 120000 patent: 120000 of bank deposits.

Example: B enterprises invest in A enterprises with their registered trademarks. The value of registered trademarks is confirmed to be 500 thousand yuan by the assets appraisal office.

500000: the intangible asset, the trademark right, is 500000: the paid in capital is 500000.

Accounting for intangible assets pfer.

There are two ways for enterprises to pfer intangible assets: pfer of ownership and pfer of use rights.

The sale of intangible assets is the main form of pfer of ownership of intangible assets. The book value of intangible assets sold should be written off, that is, the book balance of intangible assets and the corresponding provision for impairment provision. The difference between the actual pfer income and the book value of the intangible assets shall be included in non operating income or extra business expenses.

The business tax payable on the sale of intangible assets shall be used as a decrease in the corresponding non operating income or an increase in extra business expenses.

The pfer of the right to use intangible assets is only the pfer of part of the right of use to other units or individuals. The pferor still reserves the ownership of the intangible assets, and the pferee can only use it reasonably within the scope stipulated in the contract without having the right to pfer.

The pfer enterprise still has the ownership of intangible assets, so it should not write off the book value of intangible assets. The income gained from the pfer is included in other business income, and all kinds of expenses related to the pfer are included in other business expenses.

The business tax payable on the assignment of intangible assets shall be included in other business expenses.

Example: A tobacco factory purchases a patent, the cost is 200 thousand yuan, the amortization period is 10 years according to the regulations, after 1 years of purchase, the patent right is pferred to B tobacco factory, and the pfer income is 180 thousand yuan.

When you pay for the patent fees, you borrow: intangible assets 200000 loan: 200000 of bank deposits.

When the amortization (annual amortization) is spent, the management fee is intangible assets amortization 20000 loan: intangible assets 20000.

When the company obtains the proceeds from the pfer of intangible assets, it borrows 180000 deposit from bank deposits: 180000 of other business income.

When the business tax is calculated, the other business expenses 9000 loan: the tax payable should be paid 9000 (180000 * 5%) of the business tax.