Accounting for intangible assets: entries upon receipt, depreciation, disposal. Acquisition of intangible assets for a fee Costs of acquisition of intangible assets

Intangible asset(Intangible assets), this is an asset that simultaneously meets the following requirements (clauses 2 - 4 of PBU 14/2007; clause 3 of Article 258 of the Tax Code of the Russian Federation):

• the asset is not a thing;
• the asset is capable of bringing economic benefits to the organization, i.e. intended for use in the production of products, when performing work or providing services, for the management needs of an organization for a long time, i.e. useful life exceeding 12 months or normal operating cycle if it exceeds 12 months;
• the entity does not expect to sell the asset within 12 months or the normal operating cycle if it exceeds 12 months;
• the organization has rights to this asset (patents, certificates, other documents of protection, an agreement on the alienation of the exclusive right to the result of intellectual activity or to a means of individualization, documents confirming the transfer of the exclusive right without an agreement, etc.), on the basis of which the organization can limit access of other persons to use the asset;
• the actual (initial) cost of the asset can be reliably determined.

What refers to intangible assets

• works of science, literature and art;
• programs for electronic computers;
• inventions;
• utility models;
• breeding achievements;
• production secrets (know-how);
• trademarks and service marks;
• business reputation arising in connection with the acquisition of an enterprise as a property complex (in whole or part thereof).

Do not apply to intangible assets

• R&D that did not produce a positive result, was not completed or was not formalized in the prescribed manner;
• things in which the results of intellectual activity and equivalent means of individualization are expressed (for example, CDs with programs recorded on them);
• expenses associated with the formation of a legal entity (organizational expenses);
• intellectual and business qualities of the organization’s personnel, their qualifications and ability to work.

Reflection of intangible assets in accounting and financial statements

Intangible assets: details for an accountant

• Checking the accounting of intangible assets

  ...: – the institution’s rights to intangible assets are documented; – all intangible assets of the organization are reflected in the accounting... of intangible assets. In the case of creating an intangible asset, in addition to the above-mentioned expenses, in the initial cost of the intangible asset additionally... fixed assets and intangible assets used directly in the creation of the intangible asset, the initial cost of which...

• Reclassification of tangible search assets into intangible assets

  ... "Reclassification of tangible search assets into intangible assets" from the Foundation "... Reclassification of tangible search assets into intangible assets" Description of the problem The organization produces... search assets - into the intangible assets of the organization. Clause 26 of PBU 24 ... may be recognized in the value of an intangible asset (for example, in the event of liquidation ... appraisal wells are reclassified as part of an intangible asset (geological information / assessment results ...

• Changes to Instruction No. 174n. New accounting entries for budget accounting

  Loss from impairment of fixed assets, intangible assets, non-produced assets and business transactions... upon receipt of fixed assets, intangible assets, non-produced assets: a) upon transfer... of funds, intangible assets, non-produced assets: a) upon transfer of fixed assets funds, intangible assets, non-produced... gratuitous transfer of fixed assets, intangible assets, adopted in accordance with the law...

• Trademark and trademark: how to take into account?

  ... “Exclusive rights as a criterion for the recognition of intangible assets”, posted on the official website of the BMC... intangible assets used directly in the creation of an intangible asset; other expenses directly related to... reporting years. The excess of the amount of depreciation of an intangible asset over the amount of its revaluation, credited ... revaluation of intangible assets must be reflected separately in accounting. Amortization of intangible assets The cost of intangible assets with...

• How to take into account the costs of developing a store design

  Accounting for an object as an intangible asset requires a one-time completion of seven... 12 months). To recognize an intangible asset, it is necessary to have the ability to bring... documents confirming the existence of the intangible asset itself and (or) the exclusive right... the determination of the useful life of an object of intangible assets can be carried out, for example,... stipulated by the relevant contracts. For intangible assets for which it is impossible to determine the period...

• Non-financial assets: accounting entries adjusted

  250, 280 Intangible assets To account for transactions with intangible assets, accounts are used... analytical accounting accounts for reflecting intangible assets: Intangible assets - other movable property... registration of receipt and disposal of intangible assets are also adjusted: Contents of the transaction... - 153 Capitalization unaccounted for intangible assets identified during inventory 0 ... to the accounts of fixed assets, intangible assets, non-produced assets, depreciation, ...

• Asset without VAT

  Including fixed assets and intangible assets, property rights in the future... in relation to fixed assets and intangible assets - in an amount proportional... in relation to fixed assets and intangible assets - in an amount proportional... many companies are actively use intangible assets. Intangible assets allow you to increase the value of a company... the code does not resolve the issue of the sale of an intangible asset and a material carrier. Material...

• Review of amendments made to Directive No. 65n for budgetary institutions

  Funds"; 320 “Increase in the value of intangible assets”; 330 “Increase in the cost... disposal of intangible assets, including income from the sale of intangible assets, income... connections with the shortage of intangible assets; operations for disposal of intangible assets. We also note... “Amortization of intangible assets”, which includes the amount of reduction in the value of intangible assets as a result of... their depreciation; 422 “Impairment of intangible assets”, according to...

• Changes to the Unified Chart of Accounts and instructions for its use
• The latest changes to Instruction No. 157n

  Exclusive (property) rights to intangible assets; remunerations paid to the intermediary organization through... which the intangible asset was acquired; amounts paid by an institution for... or the provision of services when creating an intangible asset in accordance with contracts (state (municipal)... fixed assets and intangible assets used directly in the creation of an intangible asset, the initial cost of which...

• Innovations in accounting for non-financial assets

  Fixed assets (fixed assets), intangible assets, non-produced assets (in particular... intellectual activity recognized as objects of intangible assets. Current income... 190 15 Intangible assets received free of charge from supranational organizations, international... 15 Capitalized unaccounted for intangible assets identified during inventory 0 ... 10 199 15 Intangible assets were transferred to a government body, state (municipal...

• Audit of annual financial statements of organizations for 2018

  Funds (including land), intangible assets or other non-current assets. According to... impairment of intangible assets In accordance with PBU 14/2007, intangible assets can... test intangible assets for impairment and account for changes in the value of intangible assets due to their... accumulated losses from impairment of an intangible asset are disclosed in the explanations to... in non-current assets (fixed assets, intangible assets, etc.), inventories, ...

• Important changes to Instruction No. 157n

  ...) exclusive (property) rights to objects of intangible assets - Remunerations paid to the intermediary organization through... which the object of intangible assets was acquired - Amounts paid by the institution for ... or the provision of services when creating an intangible asset according to contracts (state ( municipal) ... fixed assets and intangible assets used directly in the creation of an intangible asset, the initial cost of which ...

• Accounting for the costs of creating and maintaining the AU website

  Accounting. Acquired (created) objects of intangible assets (exclusive rights to the site) are accepted... the site, recorded as part of intangible assets, is written off by calculating depreciation. ... there is a period for its use). Intangible assets for which it is impossible to accurately ... useful life are considered intangible assets with an indefinite useful life ... and intangible assets" Account credit 0 104 39 000 "Amortization of an intangible asset - ...

• Changes to Directives No. 65n. What should an accountant know?

  Funds"; 320 “Increase in the value of intangible assets”; 330 “Increase in value... including: fixed assets, intangible assets, non-produced assets, material inventories... intangible assets”, income from the disposal of intangible assets is reflected, including income from the sale of intangible assets... To subarticle 422 “Depreciation intangible assets" refers to the amount of decrease in economic... contained in the object of intangible assets arising as a result of impairment...

Accounting for intangible assets is carried out in accordance with the Accounting Regulations “Accounting for Intangible Assets” PBU 14/2000, approved by Order of the Ministry of Finance of Russia dated October 16, 2000 N 91n.

To be classified as intangible assets, the following one-time conditions must be met: the absence of a tangible (physical) structure; the possibility of separation by the organization from other property; use in the production of products, when performing work or providing services, or for the management needs of the organization; long-term use, i.e. useful life exceeding 12 months or normal operating cycle if it exceeds 12 months; the organization does not intend to subsequently resell this property; the ability to bring economic benefits (income) to the organization in the future; the presence of properly executed documents confirming the existence of the asset itself and the organization’s exclusive right to the results of intellectual activity (patents, certificates, other documents of protection, agreement of assignment (acquisition) of a patent, trademark, etc.).

The above conditions include: the exclusive right of the patent holder to an invention, industrial design; utility model; exclusive copyright for computer programs, databases; property right of the author or other copyright holder, trademark and service mark, name of place of origin of goods; the exclusive right of the patent holder to selection achievements.

Intangible assets also take into account organizational expenses (expenses associated with the formation of a legal entity, recognized in accordance with the constituent documents as part of the contribution of participants (founders) to the authorized (share) capital of the organization) and the business reputation of the organization, which is determined as the difference between the purchase price organization (as an acquired property complex as a whole) and the balance sheet value of all assets and liabilities as of the date of purchase (acquisition).

An entity's goodwill should be treated as a premium to the price paid by the buyer in anticipation of future economic benefits and accounted for as a separate inventory item.

A negative business reputation of an organization should be considered as a discount on the price provided to the buyer due to the lack of factors of the presence of stable buyers, reputation for quality, marketing and sales skills, business connections, management experience, level of personnel qualifications, etc., and taken into account as future income periods.

The procedure for reflecting an organization’s negative business reputation in accounting is as follows: the difference between the estimated (initial) cost of the organization and the purchase price paid by the buyer when purchasing privatization objects at an auction or by competition is taken into account as the debit of account 08 “Investments in non-current assets” in correspondence with the loan account 98 “Deferred income”; accepted for accounting as the debit of account 04 of account 08 “Investments in non-current assets”; the amount of depreciation charges is credited to account 04 “Intangible assets” in correspondence with the debit of the production cost or sales expense accounts. At the same time, account 98 “Deferred income” is debited in correspondence with the credit of account 91 “Other income and expenses”, subaccount 1 “Other income”.

Intangible assets do not include the intellectual and business qualities of the organization’s personnel, their qualifications and ability to work, since they are inseparable from their carriers and cannot be used without them.

Intangible assets are accepted for accounting in account 04 “Intangible assets” at their original cost, which is determined by:

For intangible assets acquired for a fee - based on the actual costs incurred for the acquisition, with the exception of others reimbursed by the legislation of the Russian Federation. The actual expenses for the acquisition of intangible assets are: amounts paid in accordance with the agreement for the assignment (acquisition) of rights to the copyright holder (seller); amounts paid to organizations for information and consulting services related to the acquisition of intangible assets; registration fees, customs duties, patent duties and other similar payments made in connection with the assignment (acquisition) of the exclusive rights of the copyright holder; non-refundable taxes paid in connection with the acquisition of an intangible asset; remunerations paid by the intermediary organization through which the intangible asset was acquired; other expenses directly related to the acquisition of intangible assets. Additional expenses of the organization incurred to bring acquired intangible assets to a state in which they are suitable for use for the intended purposes increase their initial cost;

For intangible assets created by the organization itself - based on the amounts of actual expenses for creation, production (cost of spent material resources, wages, services of third-party organizations under co-executive agreements, patent fees associated with obtaining patents, certificates, etc.) , with the exception of value added tax and other refundable taxes (except for cases provided for by the legislation of the Russian Federation). Intangible assets are considered created by an organization if the exclusive right to the results of intellectual activity, obtained in the performance of official duties or on a specific assignment of the employer, belongs to the employing organization; the exclusive right to intellectual activity obtained by the author (authors) under an agreement with a customer who is not an employer belongs to the customer organization; a certificate for a trademark or for the right to use the appellation of origin of a product is issued in the name of the organization. General business and other similar expenses are not included in the actual expenses for the acquisition and creation of intangible assets, except in cases where they are directly related to the acquisition or creation of intangible assets;

For intangible assets contributed as a contribution to the authorized (share) capital of an organization - based on their monetary value agreed upon by the founders (participants) of the organization, unless otherwise provided by the legislation of the Russian Federation;

For intangible assets received under contracts providing for the fulfillment of obligations (payment) in non-monetary means - based on the cost of goods (valuables) transferred or to be transferred by the organization. The cost of goods (valuables) transferred or to be transferred by an organization is established based on the price at which, in comparable circumstances, the organization usually determines the cost of similar goods (valuables). If it is impossible to determine the value of goods (valuables) transferred or to be transferred by the organization under such contracts, the value of the intangible assets received by the organization is established based on the price at which similar intangible assets are acquired in comparable circumstances.

The value of intangible assets at which they are accepted for accounting is not subject to change, except in cases established by the legislation of the Russian Federation.

The assessment of intangible assets, the value of which upon acquisition is determined in foreign currency, is carried out in rubles by converting foreign currency at the rate of the Central Bank of the Russian Federation valid on the date of acquisition by the organization of objects by right of ownership, economic management, and operational management.

If an organization has received the rights to use objects of intellectual property (except for the right to use the appellation of origin of goods), then such objects of intangible assets are taken into account on an off-balance sheet account in the valuation adopted in the contract. In this case, payments for granting the right to use intellectual property objects, made in the form of periodic payments, including royalties, calculated and paid in the manner and within the terms established by the agreement, are included in the expenses of the reporting period, and payments for the granted right to use intellectual property objects, made in in the form of a fixed one-time payment, including royalties, are reflected in accounting as deferred expenses (credit to the cash account in correspondence with the debit of account 97 “Deferred Expenses”) and are subject to write-off during the term of the agreement.

If an organization that is the copyright holder and user of intellectual property objects has transferred the rights to use these objects to another organization, then these objects are not written off from the balance sheet and must be accounted for separately.

The cost of intangible assets is repaid through depreciation.

Depreciation charges for intangible assets are reflected in accounting by accumulating the corresponding amounts on account 05 “Depreciation of intangible assets” or by reducing the initial cost of the object.

For intangible assets (organizational expenses, goodwill), for which depreciation is taken into account by reducing the original cost, the accrued amounts of depreciation charges are written off directly to the credit of account 04 “Intangible assets” in correspondence with the debit of the production cost or sales expenses accounts.

If depreciation charges for any intangible assets are reflected in accounting by reducing their original cost, then after full repayment of this cost, these objects continue to be reflected in accounting (until the expiration of the patent, certificate and other security documents) in the conditional valuation adopted organization, with the attribution of the assessment amount to the financial results of the organization (debit of account 04 “Intangible assets” in correspondence with the credit of account 99 “Profits and losses”).

Intangible assets acquired or received from other persons free of charge, as well as as a subsidy from a government body, accepted for accounting, are reflected in the debit of account 04 “Intangible assets” in correspondence with account 08 “Investments in non-current assets”.

When intangible assets are disposed of (sold, written off, transferred free of charge, etc.), their initial cost, recorded in account 04 “Intangible assets,” is reduced by the amount of accrued depreciation in correspondence with account 05 “Amortization of intangible assets.” The residual value of disposed objects is written off from account 04 “Intangible assets” to account 91 “Other income and expenses”.

Analytical accounting for account 04 “Intangible assets” is carried out by types and objects of intangible assets. The construction of analytical accounting should provide the ability to obtain data on the presence of intangible assets for the preparation of financial statements (by type, etc.).

ACCOUNT 04 "INTANGIBLE ASSETS"

CORRESPONDING WITH ACCOUNTS:

N p/p

Intangible assets are another category of non-current assets that do not have a tangible form, since they are the final product of intellectual activity. Let's consider the accounting entries for accounting for intangible assets upon receipt, depreciation and disposal.

Intangible assets: what are they and how to account for them?

The essence of the concept of “intangible assets” and the procedure for their accounting is regulated by Accounting Regulations No. 14. It is here that it is explained what can be classified as intangible objects. Thus, intangible assets include:

To account for intangible assets, active account 04 is used, in which objects are reflected at their original cost.

As for the initial cost of intangible assets, it consists of the amount of costs associated with their purchase, installation and configuration (payment of duties, information and consulting services). The initial cost is established at the time the intangible asset is accepted for accounting and remains unchanged throughout the entire service life of the asset, except in cases of revaluation or depreciation of the asset. Please note that only amounts minus VAT are taken into account.

An interesting fact is that since 2008, transactions with intangible assets have been exempt from VAT.

When registering an intangible asset, a transfer acceptance certificate is drawn up, which is the basis for opening an intangible asset registration card-1. The disposal of intangible assets can be formalized by a write-off act in the OS-4 form or an acceptance and transfer act in the OS-1 form.

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List of possible entries that can be made when accounting for intangible assets

Account Dt	Kt account	Transaction amount, rub.	Wiring Description	A document base
Purchase of an intangible asset
60 (76)	51	109 000,00	The cost of the software (patent, license) was paid by non-cash form.	Payment order
60 (76)	51	15 000,00	Paid for the services of a programmer who provided connection and subsequent configuration of previously purchased software (for a patent and license - payment of state duty)	Payment order
08	60 (76)	109 000,00	The initial cost of the software includes the cost of acquiring it - purchase	Receipt invoice, accounting certificate
08	60 (76)	12 711,86	The initial cost of the software includes the costs of its installation and configuration (excluding VAT)	Certificate of completion of work, accounting certificate
19	60 (76)	2 288,14	A tax credit was received, which is not included in the initial cost of the intangible asset	Invoice
04	08	121 711,86	The purchased software (intangible asset) was put into operation, that is, the object was accepted for accounting 109,000 + 12,711.86 = 121,711.86 rubles.
Creation of an intangible asset
· may be associated with the implementation of a specific task that the employer sets for his employees; · conclusion of a creation agreement.
08	70	30 000	Salaries paid to employees involved in the development of an industrial design	Payroll sheet
08	69	7 800	UST is accrued on employee salaries	Summary of contributions to insurance funds
08	10	15 000	The cost of material costs is included in the initial cost of the industrial design	Write-off acts
60 (76)	51	2 500	The cost of state duty has been paid	Payment order
60 (76)	51	1 550	Fee for the examination has been paid	Payment order
08	60 (76)	2 500	The cost of state duty is taken into account	Accounting information
08	60 (76)	1 550	The cost of the examination fee is taken into account	Accounting information
04	08	56 850	The industrial design was accepted for registration30000 + 7800 + 15000 + 2500 +1550 = = 56850 rub.	Intangible assets accounting card – 1
* Interestingly, in tax accounting, costs associated with paying taxes are not taken into account as costs when creating an intangible asset
Contribution of an intangible asset to the authorized capital
08	75	150 000	Receipt of intangible assets as a contribution to the authorized capital	Constituent documents and accounting certificate
01	08-5	150 000	Acceptance for accounting of intangible assets that were contributed to the authorized capital	Intangible assets accounting card – 1
Calculation of depreciation charges
20 (44)	04	4 500	Monthly depreciation charges are accrued on the intangible asset	Depreciation statement
20 (44)	05	4 500	Monthly depreciation charges are charged on the intangible asset. When using account 05.	Depreciation statement
Revaluation of an intangible asset
04	83	45 000	Increased residual value of an intangible asset
83	05	5 850	Based on the additional assessment, the amount of depreciation charges was increased	Accounting information
91-2	04	25 000	The residual value of an intangible asset is discounted (reduced)	Commission decisions, accounting certificate
05	91-1	7 800	The amount of depreciation charges for an intangible object has been reduced	Accounting information
Write-off of an intangible asset
05	04	45 600	The amount of depreciation charges written off
91-2	04	7 500	The residual value of an intangible asset is written off	Write-off act, intangible assets accounting card – 1

Accounting for the receipt and disposal of intangible assets is carried out on the balance sheet account. 04 "NMA". Let's look at how transactions involving the acquisition of an asset, its use and disposal are reflected in accounting.

Documentation of receipt and disposal of intangible assets

Documented evidence of the receipt of property in the company's production process is the acceptance certificate f. No. OS-1. The capitalization of intangible assets is accompanied by the preparation of an analytical accounting card f. No. NMA-1, which records information about each object separately, as well as the reasons for its liquidation or disposal.

Official recommendations for registering the movement of intangible assets have not yet been determined, therefore companies have the right to develop the necessary forms independently, relying on the instructions of existing regulatory legal acts, for example, the Law “On Accounting”, which dictates the presence in the document of mandatory details reflecting the period of use of the asset, its cost, depreciation rates, dates of acceptance and withdrawal from operation, etc.

It is on their basis that accounting for the receipt of depreciation and disposal of intangible assets is carried out.

Particular attention is required when registering the transfer of ownership of an asset, since the acquisition of rights to dispose of property protected by patent law (for example, an invention) should be confirmed by licensing agreements with appropriate registration in the Patent Department. Often, accounting for the acquisition and creation of intangible assets involves the preparation of special forms of protection that define internal rules for the operation and protection of such property in order to prevent the disclosure of industrial secrets.

Accounting for receipt of intangible assets

The following are considered receipts of intangible assets:

• purchase;
• exchange;
• gratuitous transfer;
• creation of an asset in-house or by third parties;
• contribution to the company's capital.

The costs of creating an intangible asset are reflected in the account. 08-5 “Acquisition of intangible assets.” It accumulates all the expenses incurred by the company in forming the initial cost of this asset. The commissioning of intangible assets is recorded in the debit of the account. 04.

Acceptance of intangible assets for accounting: postings

The following accounting entries are common to all types of acquisition of intangible assets:

• D/t 08-5 K/t 60, 70, 75-1, 76, 98-2 – a set of costs associated with the acquisition or production of intangible assets
• D/t 04 K/t 08-5 – the asset is accepted for accounting.

In case of creation of intangible assets, the receipt of intangible assets is documented by the following transactions:

• D/t 08 K/t of accounts involved in the formation of the cost of intangible assets - staff salaries, contributions to the Social Insurance Fund, cost of materials, energy, etc. (70, 69, 76, 10, etc.). Upon completion of the creation of the asset, its value is transferred to the debit of the account. 04.

Accounting for the receipt of intangible assets as a share in the authorized capital of the company is reflected in the records:

• D/t 75 K/t 80 – debt of the founder in the management company;
• D/t 08 K/t 75 – receipt of an asset into the enterprise;
• D/t 04 K/t 08 – commissioning of intangible assets;
• When purchasing an asset, VAT is charged, which is taken into account on the account. 19 “VAT on acquired assets.”

Example

The company acquired the rights to the software. The contract price was 472,000 rubles, incl. VAT 72,000 rub. Consultations with a specialist cost the company 29,500 rubles. (including VAT 4,500 rubles) In this case, the receipt of intangible assets from suppliers is reflected in the entries:

Operation			Sum
Acceptance of supplier invoice
Payment of the invoice for the purchase of the program
Cost of consultant services
Payment of invoice for consultations
VAT included (RUB 72,000 + RUB 4,500)
Commissioning (400,000 rub. + 25,000 rub.)

Receipt of intangible assets free of charge will use account 98 “Income bud. periods" with a subaccount of gratuitous receipts. The gratuitous receipt of intangible assets to the company is reflected:

• D/t 08 K/t 98

As wear and tear accrues, depreciation amounts decrease the value of the object in the debit of the account. 98, goes to credit account. 91, which means recognition of profit under the item of other income:

• D/t 98 K/t 91.

Accounting for disposal of intangible assets

The cost of intangible assets, the use of which has become impractical for various reasons (lack of income, complete wear and tear, or the need to sell), must be written off. The disposal operation is accompanied by a corresponding order from the company's management. If the reason for disposal is obsolescence of an asset, then a commission created at the enterprise analyzes the situation and draws up an act for writing off intangible assets.

When an asset with a residual value is liquidated, the difference between it and the book price of the asset is written off to the account. 91, determining loss. A fully depreciated object does not create a loss upon liquidation.

Example

An intangible asset with an initial cost of 100,000 rubles is morally obsolete and must be liquidated. The amount of accrued depreciation by the date of liquidation amounted to RUB 85,000. The disposal of intangible assets is documented by the following entries:

Intangible assets can be sold, assigned, transferred free of charge or into the authorized funds of other companies. Income from the sale of tangible and intangible assets is reflected in operating accounts 91 and 99.

Example

The company sells the right to use an asset with an initial cost of 150,000 rubles that belongs to it. Depreciation accrued - 100,000 rubles. The purchase price under the contract is RUB 295,000. (including VAT – 45,000 rubles). The sale of intangible assets is registered, postings:

Intangible assets are property that does not have a physical form, but represents for the enterprise. In addition, they, like fixed assets, are aimed at generating profit in the course of financial activities. Accounting for this group of funds is somewhat different from collecting information about the rest of the property. We will get acquainted with the features of its organization and the structure of the assets themselves in this article.

Specific signs

What are intangible assets? What does this mean? A novice accountant is probably tormented by such questions. If the image of material property emerges immediately, then how can one imagine something else?

Let us analyze the main conditions for classifying funds into the group of intangible assets. So, representatives of this category must meet the following criteria:

• lack physical fitness;
• used in the production and sales processes of the enterprise or for management needs;
• be in circulation for 12 months or more;
• bring profit in the present or forecast time;
• comply with legal documentation requirements;
• have the opportunity to transfer ownership to another individual or legal entity.

In order to use intangible assets in its activities, the enterprise itself must have ownership rights to them.

Classification of intangible assets by type

With the growth of scientific technologies, the number of types of intangible forms of property increases. A dozen years ago, only exclusive copyrights were included here, but now the group has about 7 categories, which include:

1. The right to use natural resources.
2. Property rights.
3. Commercial designations (use of brand, name).
4. Property objects in the industrial sector.
5. Copyright.
6. Goodwill.
7. Other intangible assets (in particular, some costs).

It is worth considering that what is recognized as intangible material is not the result of research and intellectual work, but the exclusive right to use it for commercial purposes.

Intellectual property

The results of intellectual activity are also intangible assets. What does this mean? Mainly patent or copyright assets. The first category includes rights arising in the scientific and design field. This:

• new inventions;
• industrial designs;
• technical models;
• names and trademarks.

The second category includes property created on the basis of the objective views of a specific author. These include works of art, software, databases, integrated circuit layouts and other assets.

The main difference between copyright and patent law is the method of its recognition, which in this case resembles the relationship of a part to the whole. If a patent is issued for any invention and protects the work itself, then copyright is assigned only to the form of expressing the subjective view of different owners on the same idea.

Costs of organizing a legal entity

It would seem that what is common between the costs and assets of an enterprise? In some cases, they may be reflected as part of intangible assets. To do this, it is enough to meet several conditions:

• expenses must be incurred during the preparation of documents when creating an enterprise until its registration with the regulatory authorities;
• they are aimed at paying legal consultants, paying registration fees and other costs for the legal opening of a legal entity;
• the amount of expenses must be included in the authorized capital of the organization.

Funds that meet these criteria can be confidently included in intangible assets. All further expenses for changing accounting policies, stamps, seals and other documents are classified as general business expenses.

Goodwill

The classification of intangible assets provides for the formation of such property as business reputation. It is considered only if the company is sold. Goodwill is understood as the difference between the market and the company, taking into account the accumulated reputation (positive or negative). It turns out that goodwill has its own price, which means it is bought and sold in the same way as any other property.

In the case of the formation of a positive business reputation, they speak of an additional amount of premium that must be paid to the seller, since in the future the presence of goodwill will bring economic benefits to the new owner. Negative characteristics of a company in the market can lead to problems and difficulties that hinder activity and profit. This happens due to poor management, lack of an established sales system, marketing plan, regular customers and connections, and other reasons. This situation reduces the value of the enterprise and requires a discount from the seller.

Rules for calculating depreciation

It has already been clarified what intangible assets are, what relates to them, and what their specific characteristics are. Having realized that this property is equivalent to fixed assets, one should ask the question: is it depreciable? Since intangible assets do not have a physical form, how will they wear out? Basically, depreciation takes the form of obsolescence. When determining the amount of deductions, you should rely on the following rules:

1. Assess the cost and useful life of intangible assets.
2. Depending on the specific situation and the provisions of the accounting policy, calculate the amount using one of three methods: linear, reducing balance, production.
3. Deductions are made from the 1st day of the month following the acceptance of the asset for registration.
4. Depreciation is not charged on intangible assets of non-profit organizations.

To collect accumulated depreciation amounts, account 05 is used. This is a passive accounting account: credit is accrued, and debit is written off. When drawing up a balance sheet, the credit balance is used to calculate the intangible asset indicator.

Characteristics of depreciation methods

Different types of intangible assets require an individual approach to their assessment and depreciation. The linear method is universal for any property, regardless of its useful life, the amount of profit generated and other indicators. The method is often used in cases where it is impossible to determine the exact operating period, and predicting possible economic benefits in the future is difficult. The method assumes an even distribution of the total depreciation amount across months.

Used for intangible assets, the profit from which will be greatest in the first years of operation. The amounts are distributed unevenly but remain constant during one period. For the calculation, an acceleration factor is used, which is regulated by accounting policies. The residual or market value indicator is multiplied by a fraction: the numerator is the coefficient, the denominator is the remaining service life, determined in months.

The production method is the most flexible approach depending on the financial result obtained. The amounts are calculated directly proportional to the volume of manufactured/sold products with the participation of intangible assets.

Historical cost of intangible assets

To register property, you must know exactly its value. Like other non-current assets, intangible assets are reflected in accounting at their original cost, identified as of a certain date. The actual amount that had to be spent on the production or acquisition of intangible assets includes:

• accounts payable directly related to the creation/purchase of property;
• the net value of the asset itself.

If it is difficult to evaluate independently manufactured intangible assets, a comparative analysis should be carried out with similar products on the market.

In the future, the enterprise has the right to revaluate property in accordance with the instructions of its accounting policies. If the price of an intangible asset decreases, the original cost changes. The difference between market and actual costs is written off to the financial results of the enterprise.

Service life of intangible equipment

After determining the initial cost, it is necessary to establish the useful life of intangible assets. The duration of the property rights to own intangible assets is taken as a basis. In other cases, they rely on the possible period of profit. Basic intangible assets are divided into two categories:

• with an indefinite operational life;
• with a limited period of use.

If everything is clear with the second type, then for the first it is recommended to stop at 20 years. Determining the operating life must necessarily be based on an analysis of possible profit, since the period is used to calculate depreciation.

Accounting for intangible assets

To collect and group information about property that does not have a tangible form, two accounts are used: 04 and 05. The latter, as is already known, is created to accumulate depreciation charges. Account 04 collects all data on the types, costs and processes occurring with intangible assets. This is an active inventory account whose debit balance is reflected in the financial statements. In addition, the enterprise uses accounts 19.2 and 48 to characterize VAT and the sale of intangible assets.

A prerequisite for organizing accounting for intangible assets is maintaining analytical accounts for each group or individual units of property. The following subaccounts can be used as an example:

• 04.1 "Intellectual Property".
• 04.2 “Right to use natural resources.”
• 04.3 “Deferred costs”.
• 04.4 "Goodwill".
• 04.5 "Commercial designations".
• 04.6 “Other objects of intangible assets.”

Analytical accounting data must be indicated in the annual reporting (form No. 5) in the section characterizing the composition of intangible property.

Correspondence with other accounts

Knowing what intangible assets are and what relates to them, we can assume which accounting accounts account 04 will interact with. Based on the characteristics of the active account, debit transactions characterize the acceptance of intangible assets for accounting through purchase, receipt, exchange. The interconnected accounts become 04 and 08, 50-52, 55, 75-76, 87-88. The write-off of intangible assets in particular cases of sale, liquidation, exchange leads to an entry in the credit of account 04. In this case, interaction occurs with the debit of accounts 06, 48, 58, 87.

Accounting for receipt of intangible assets

The act of acceptance of intangible assets is a document on the basis of which the receipt of property is recorded. The order of reflection of intangible assets differs depending on the method of their preparation:

1. Purchase is the acquisition of assets for a fee agreed upon between the seller and the buyer. Expenses that must be included in the initial cost are collected in the debit of account 08. After intangible assets are ready for commissioning, the data is written off to account 04 by posting Dt 04 Kt 08.
2. Barter is a mutually beneficial and equivalent exchange between subjects of economic relations. The accountant records account assignment Dt 08 Kt 60/76, which characterizes the receipt of intangible assets through the fulfillment of obligations to the other party to the exchange. If the process is accompanied by an additional payment or additional expenses, they are reflected in the debit of account 08. After calculation and start of use, the posting is similar to the first point: Dt 04 Kt 08. The transfer of intangible assets is recorded in the credit of the inventory or inventory accounts and the debit of account 46, 47 or 48.
3. In the process of organizing an enterprise, intangible assets can be received from the founders. An example of wiring design looks like this: Dt 04 Kt 75.1.
4. When transferring intangible assets into the possession of a company free of charge, the amounts are credited to account 87.3 at the current market value of the object. Account 04 is debited.
5. A prerequisite is the allocation of VAT, which occurs on accounts 68 “VAT” and 19.2. The process of acquiring intangible assets is accompanied by posting Dt 19.2 Kt 60/76 or other current accounts. After the assets are accepted for accounting, the amount of VAT is written off in equal shares over six months: Dt 68 “VAT” Kt 19.2.
6. VAT on intangible assets acquired for economic and other needs outside of production is taken into account somewhat differently. The tax is covered by our own sources of financing: Dt 29, 88, 96 Kt 19.2.
7. Acquired intangible assets for production needs, exempt from VAT, include the tax amount in the initial cost.

Disposal of intangible assets in accounting

Property of this type can be written off from account 04 in cases of sale, gratuitous transfer, liquidation or redirection to the capital of other enterprises. These are the main reasons why intangible assets are disposed of. Regardless of the write-off method, the 48th account with an active-passive structure is used. The debit records the amount of the initial cost of intangible assets, the amount of VAT on them, as well as disposal costs. The loan indicates the accumulated depreciation, as well as the amount of income from the sale or other benefits.

Turnovers on account 48 make it possible to isolate the financial result from the process: income in the event that credit turnovers exceed debit turnovers and vice versa. The data is written off to the appropriate account - 80, 84, 83, 98 (depending on the reason for the intangible asset leaving the balance sheet).

Intangible assets: example of drawing up standard disposal transactions

		Characteristics of a business transaction
		Income from the sale of intangible assets is attributed to the increase in the authorized capital.
		The loss from the sale of property rights is attributed to the reduction of the initial capital.
		Income from the gratuitous receipt of intangible assets is included.
		To account for the uncovered loss, a patent for production purposes was transferred free of charge.
		A positive difference is reflected between the contractual and book value of intangible assets subject to transfer as a contribution to the capital of a third-party company.
		Income from investing intangible assets in another organization is written off in equal shares to the authorized capital.

Intangible assets are no less important for the successful operation of an enterprise than other types of non-current assets. It is this type of ownership that becomes a unique advantage in the market for a company over its competitors.