Intangible assets are such assets,which do not have a material form, such as production equipment or finished products, but they, at the same time, contribute to an increase in the company's revenues in one way or another. To this kind of assets include a variety of objects. It can be a license or a patent, or maybe a computer program or even a company logo.
A distinctive feature of intangible assetsis the fact that they serve the company for a long period of time, more than a year, if one speaks the accounting terminology. In this way they resemble the basis of the means and, like the fixed assets, they lose their value for several reporting periods. So, to reflect this phenomenon, we need to use the help of depreciation.
Amortization of intangible assets in somedegree differs from the more widespread depreciation of industrial equipment. The thing is that in this case we do not know exactly for how long an intangible asset will benefit the company. Of course, in some cases this is directly reflected in the legal way. For example, a patent may be issued for a specified period of time. If no such period is specified, it is generally accepted in the world practice that intangible assets serve for 20 years, which means that amortization of intangible assets must be carried out during this period of time. However, for the purposes of tax accounting, the period is usually reduced to 10 years.
It is worth noting that in some casesamortization of intangible assets is completely inapplicable. Such cases include the reputation of the company. Of course, not the reputation of the company in the usual sense of the word, because it is impossible to determine it in monetary terms, but the difference between the purchase value of the company and its assets, which according to the accounting rules should remain on the balance sheet.
However, this case is particular, and inIn most cases, depreciation charges still have to count. So, it is necessary to know the methods of depreciation of intangible assets, which are most common in the world practice. The simplest method is linear. In this case, all that is required of you is to divide the total value of the intangible asset, which is reflected on the balance sheet, for the estimated useful life. In the future, it is necessary to annually record the resulting amount in the company's expenses.
As for the non-linear method, in thisThe write-off of the value of intangible assets by balance to expenses is carried out by uneven amounts. There are different ways of calculating the amortization of intangible assets by a non-linear method, but their general principle is that the more time has passed since the acquisition of an intangible asset, the less the depreciation should be.
The method of the rinsing residue, for example,Each year it is necessary to deduct a certain percentage of the residual value of assets. The percentage calculated by the linear method is multiplied by two. In the last year of useful use of the asset, the balance is deducted. In addition, sometimes the method of calculating depreciation is applied, depending on the volume of output. The larger the output, the more depreciation deductions must be written off.
As you can see, amortization of intangible assets -the process is rather difficult, and therefore it must be carried out exclusively by a professional accountant, who is well versed in the nature of the problem. As for the managers of the enterprise, in this case it is more important for them to have an end result, and not a calculation procedure.