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Intangible assets

This is a mind map about intangible assets, mainly including: confirmation and measurement, land, purchase method, investor investment method, confirmation and measurement of internal research and development expenses, amortization period, disposal, test point, and regular detection of impairment.

Edited at 2025-03-11 10:28:48

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Intangible assets

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Outline

Intangible assets

Confirmation and metering

patent

Non-patent technology

Unable to be fixed and not protected by law

Trademark Rights

Land use rights

Franchise Rights

Only corporate franchise can be used as intangible assets

Ground

Self-use

Ground

Intangible assets

Buildings above ground

Fixed assets

The land and the above-ground buildings are indistinguishable

Fixed assets

rent

Investment real estate

Used to develop real estate

Develop products

Real estate companies as inventory

How to buy

Purchase price Related taxes and fees Directly attributed to other expenses incurred in making the asset reach the intended use Professional service fee Testing fee (such as professional service fee incurred in making the intangible asset reach the intended use, and the cost of testing whether the intangible asset can function normally)

If the purchase of intangible assets exceeds the normal credit conditions, the payment will be delayed and in essence have a financing nature. The cost of the intangible assets is determined based on the current value of the purchase price. The difference between the actual paid price and the current value of the purchase price shall be included in the current profit and loss within the credit period, except as should be capitalized in accordance with "Enterprise Accounting Standard No. 17 - Borrow Fees".

Entry when purchasing: Borrow: Intangible assets (discounted value of current purchase price or installment amount) Unrecognized financing expenses (future interest expenses) Credit: Long-term payable (total future payments, final value) Bank deposits Long-term payables - Unrecognized financing expenses = Current value of long-term payables Balance sheet size: deduct the part that expires in the next one year Amount of interest expenses per issue Borrow: Financial expenses (= principal payable at the beginning of the period × actual interest rate) Credit: Unrecognized financing expenses When amortized for each period: Borrow: Management expenses/manufacturing expenses/production costs Credit: Accumulated amortization At the time of settlement of each period Borrow: Long-term payable Taxes and fees payable-VAT payable-input tax Credit: Bank deposit

The following expenses do not constitute the acquisition cost of intangible assets: Advertising fees, administrative expenses and other indirect expenses incurred for the introduction of new products; Fees incurred after the intangible assets have reached their intended use. (The subsequent expenses of intangible assets are generally included in administrative expenses)

Investor investment methods

Determined according to the value agreed in the investment contract or agreement. If the value stipulated in the contract or agreement is unfair, the fair value of the intangible assets shall be used as the initial cost of the intangible assets.

Intangible assets obtained through government subsidies are measured at fair value. If the fair value cannot be reliably obtained, they shall be measured at nominal amount.

1. General accounting processing Borrow: Intangible Assets Credit: Deferred income Borrow: Deferred income Credit: Other income 2. If fair value cannot be measured reliably Borrow: Intangible Assets Credit: Other income

The enterprise should determine the cost of land use rights based on the actual price paid plus the relevant taxes and fees. If this land use right is used to build a factory or office building by itself, it will be calculated separately from the building

The land use right must be reflected in the following circumstances: 1. The land use rights obtained by the real estate development company is used to develop real estate sold to the outside world, and the corresponding land use rights should be incorporated into the cost of the property; 2. If the land and above-ground buildings can be reasonably divided by enterprises, they shall be accounted separately; otherwise, all of them shall be accounted as fixed assets.

[Key Test Points] Land and above-ground buildings should be accounted for in different subjects. This should not only be remembered, but also be integrated into specific accounting processing. Also, remember the two situations reflected by the merger

Confirmation and measurement of internal research and development costs

Research stage

Expenses

Collection costs: Borrow: R&D expenditure - expense expenditure Credit: Bank deposit Raw materials Payroll payable End of period carryover: Borrow: Administrative Fees Loan: R&D expenditure - expense expenditure

Development stage

Expenses

Entry to the same study stage

Capitalized expenditure

Borrow: R&D expenditure-capitalized expenditure -- Expenditures Credit: Bank deposit Raw materials Payroll payable Accumulated depreciation End of period carryover: Borrow: Administrative Fees Loan: R&D expenditure - expense expenditure Reaching the predetermined usable state: Borrow: Intangible Assets Loan: R&D expenditure-capitalized expenditure

The debit balance of R&D expenditures is presented to the "development expenditures" items in the balance sheet, and the impairment is required regularly.

Amortization period

Intangible assets with limited service life

The shortest principle of three: legal period/contract period/effective use period

If the amount of extension costs is small, the extension period will be included in the amortization period, otherwise it will be amortized as another new intangible asset input.

The residual value of intangible assets is generally 0, except for the following situations: 1. If a third party promises to purchase the intangible asset at the end of its service life, the sale price will be the residual value. 2. Reasonably presumed trading price at the end of the service life of the intangible asset

The amortization period, amortization method and residual value of intangible assets need to be reviewed regularly. If adjustments occur, they should be handled according to the accounting estimate change.

Increased the amortization of the current month, decrease the amortization of the current month, and no amortization of the current month.

Amortization Entry: Borrow: Manufacturing costs (costs included in the product for the production of a specific product) Administrative expenses (general intangible assets for self-use) Other business costs (intangible assets for rent) Credit: Accumulated amortization

Intangible assets with uncertain service life

No amortization, regular impairment measurement

(Multiple choice question) Factors to consider when estimating the service life of intangible assets 1. The usual life cycle of the product produced by the asset, as well as information about the service life of similar assets available; 2. The actual situation in technology, technology, etc. and the estimate of future development; 3. The stability of the use of the asset in the industry and the market demand for the products or services produced; 4. Actions expected by current or potential competitors; 5. Maintenance expenditures required to maintain the asset's ability to generate future economic benefits, and the ability of the enterprise to expect to pay the relevant expenditures; 6. The duration of control over the asset, as well as legal or similar restrictions on the use of the asset; 7. Relevance with the service life of other assets held by the enterprise, etc.

Disposal

sell

Borrow: Bank deposit Accumulated amortization Intangible assets impairment provisions Profit and loss of asset disposal (lossession at the time of sale) Credit: Intangible Assets Taxes and fees payable - Value-added tax payable (export tax) Profit and loss of asset disposal (when profit is realized when the sale is made)

rent

1. When obtaining rental income: Borrow: Bank deposit Credit: Other business income Taxes and fees payable—VAT payable (output tax) 2. When amortizing the value of intangible assets: Borrow: Other business costs Credit: Accumulated amortization

scrapped

Borrow: Non-operating expenses (scrap) Accumulated amortization Intangible assets impairment provisions Credit: Intangible Assets

Test point

1. Confirmation of intangible assets account cost 2. Calculation of interest expenses per issue 3. Recognition of the amount of long-term payables 4. Remember the components of the accounting cost under the purchase method, and pay special attention to the calculation of the accounting cost under the delayed payment method.

Three assets that regularly detect whether they are impaired

Goodwill

Intangible assets with uncertain service life

The debit balance of R&D expenditure, the "development expenditure" item is listed in the report