The existence of goodwill cannot be separated from the enterprise itself and is unrecognizable. It does not belong to the intangible assets referred to in this chapter.

Customer relationships, human resources, etc., the enterprise cannot control the future economic benefits they bring, and do not meet the definition of intangible assets

Expenditures on newspaper names, brands, customer lists, etc. and similar items generated by the enterprise and internally cannot be distinguished from the entire business development costs of the enterprise. The costs cannot be measured reliably and are not regarded as intangible assets.

price tax

The initial cost of intangible assets is determined based on the present value of the purchase price.

The difference between the actual price paid and the present value of the purchase price is regarded as "unrecognized financing costs" and should be amortized using the actual interest rate method during the payment period. The amortization amount should be included in the cost of intangible assets unless it meets the conditions for capitalization of borrowing costs. Except for

It should be determined according to the agreed value (stipulated in the investment contract/agreement), except where the agreed value is unfair

Land use rights acquired by an enterprise should usually be recognized as intangible assets based on the price paid and relevant taxes and fees when acquiring them.

When the land use right is used for self-development and construction of above-ground buildings such as factories, the land use right is not included in the total cost of the above-ground buildings → that is, when it is used for self-use, the premises and land are accounted for separately, the land use right - intangible assets, the building - fixed assets, during the construction period Amortization is included in the cost of factory buildings—construction in progress

Note exceptions

Under common control, the book value of the intangible assets of the merged enterprise is recognized as the initial cost when acquired; The book value of the intangible assets of the merged party is used as the basis for merger.

Not under common control shall be measured at its fair value on the date of purchase. Including: the intangible assets originally recognized by the purchased enterprise; If the purchased enterprise has not recognized an intangible asset originally, but its fair value can be measured reliably, the buyer should recognize it as an intangible asset independently of goodwill on the acquisition date. (R&D development project)

Relevant expenditures shall be expensed and included in the current profit and loss ("administrative expenses")

Eligible for capitalization, but not eligible for expense

Including: ① Material and labor costs consumed during development ②Registration fee ③Amortization of other patent rights and franchises used in the development of the intangible assets ④Interest expenses that meet the conditions for capitalization according to regulations ⑤Other expenses incurred before the intangible assets reach their intended use

Excludes: ① In addition to the above-mentioned other sales expenses, management expenses and other indirect expenses incurred during the development of intangible assets that can be directly attributed to intangible asset development activities ② Identifiable invalidity and initial operating losses that occur before the intangible assets reach their intended use ③Training expenses, etc. incurred for operating the intangible assets

When expenditure occurs

Carry forward when the intended purpose is reached

When expenditure occurs

Carry forward at the end of each period

Intangible assets with limited service life should be systematically and reasonably amortized within the service life, and the amortization amount should generally be included in the current profit and loss.

① Intangible assets with indefinite service life should not be amortized, but impairment provisions can be made ②Intangible assets held for sale ③ Expenditures in the development stage that have not yet reached the intended purpose

The service life should not exceed the period stipulated in the contract or legal rights, but the expected period of the enterprise's service life is shorter and determined based on the expected period (select the shorter time); If there is no clearly specified time limit, the company should comprehensively consider all aspects of the situation to determine the time limit for the intangible assets to bring future economic benefits to the company; Only if the period cannot be reasonably determined after the above efforts, it can be regarded as an intangible asset with an indefinite useful life.

Tips: If contractual rights or other legal rights can be extended upon expiration, the renewal period can be included in the estimate of useful life only if there is evidence that the enterprise does not need to pay significant costs for renewal ( Expected renewal period)

Enterprises should at least review the useful life and amortization method of intangible assets at the end of each year. If there is evidence that is different from the previous estimate, it will be treated as a change in accounting estimate.

For intangible assets with indefinite service life, if there is evidence that the service life is limited, it will be regarded as a change in accounting estimate.

Amortized amount = original value - residual value - impairment provision

The amortization period is: from when the intended use is achieved to when the recognition is terminated.

Intangible assets that increase in the current month will be amortized in that month; intangible assets that decrease in the current month will no longer be depreciated in that month.

The intangible assets amortization method chosen by the enterprise (straight-line method, output method, etc.), If the expected consumption pattern of the economic benefits related to the intangible asset cannot be reliably determined, the straight-line method should be used for amortization.

The residual value is generally zero, but there are exceptions: third parties commit to end-of-life purchases, estimated residual value information is available based on active markets, and the market may exist after the end of the useful life

After the residual value is determined, it should be reviewed at least at the end of each year during the holding period. If the estimated residual value is different from the original estimated residual value, it will be treated as a change in accounting estimate.

If the residual value of an intangible asset is re-estimated to be higher than its book value, the intangible asset will no longer be amortized until the residual value drops below its book value.

Debit: Management expenses (amortization of self-use intangible assets) Other operating costs (amortization of rental intangible assets) Manufacturing overhead (amortization of intangible assets used in product production, etc.) Production costs (amortization of intangible assets used specifically to produce a product or other asset) Credit: Accumulated amortization

Intangible assets with indefinite useful lives should be tested for impairment at least at the end of each year, regardless of whether there is any indication of impairment.

Borrow: Asset impairment loss Credit: Provision for impairment of intangible assets