Borrow: Administrative expenses (amortization of intangible assets for management or other intangible assets)
Manufacturing expenses (amortization of intangible assets used exclusively for the production of products)
Other operating costs (amortization of intangible assets leased)
R&D expenditures (amortization of research and development intangible assets using another intangible asset)
Credit: Accumulated amortization
Methods of amortization of intangible assets include the straight-line method and the gross production method. Enterprises should analyze and judge the useful life of intangible assets at the time of acquisition. Intangible assets with limited useful life should be amortized. Intangible assets with limited useful life, its residual value should be considered zero. Intangible assets with a limited useful life should be amortized from the month in which they are available for use (i.e., they reach their intended use), and no further amortization will be made in the month in which they are disposed of.
Depreciation of fixed assets
Borrowing: construction in progress (self-constructed fixed assets in the process)
Manufacturing costs (used by the basic production plant)
Administrative expenses (used by management)
Costs of goods sold (used by the sales department)
Other costs of operations (operating leases)
Credit: Accumulated depreciation
The depreciation method of fixed assets refers to the specific method of calculating the total amount of depreciation that should be allocated to the use of fixed assets in each period. Specifically: 1, the average annual method, characterized by a balanced distribution of depreciation accrued on fixed assets to the estimated useful life of fixed assets, using this method of calculation of depreciation for each period is equal. 2, workload method, that is, based on the actual workload of the calculation of the amount of depreciation accrued for each period of a method of calculation. 3, double-declining balance method, generally should be two years before the expiration of the useful life of the fixed asset, the fixed asset The net book value of fixed assets less the estimated net salvage value of the net amortization.4, the sum of the years method, refers to the original cost of fixed assets less the estimated net salvage value of the balance, multiplied by a declining fraction of the annual depreciation amount.
What is the difference between depreciation of fixed assets and amortization of intangible assets?
Difference between depreciation of fixed assets and amortization of intangible assets:
1, depreciation and amortization:
(1) the scope of depreciation of fixed assets:
Enterprises should be depreciated on all fixed assets, but has been fully depreciated fixed assets continue to be used and separately accounted for in the accounts of land, except.
(2) the scope of amortization of intangible assets:
Enterprises should be amortized over the useful life of all intangible assets. (Intangible assets with indefinite useful lives are not amortized during the holding period, but should be tested for impairment at the end of each year).
2, depreciation and amortization period:
(1) fixed assets should be depreciated monthly. Fixed assets should be depreciated from the time they reach their intended use, derecognition or classified as non-current assets held for sale stop depreciation. That is, no depreciation in the month of increase in the month of depreciation, the month of decrease in the month, the month of depreciation.
(2) intangible assets should be amortized monthly. Intangible assets should be amortized from the month they are available for use until they are no longer recognized as intangible assets. That is, the month of the increase in intangible assets in the month of amortization, the month of the decrease in intangible assets, no longer amortized in that month.
3, renewal and transformation:
(1) fixed assets. In the process of renewal and renovation of fixed assets out of use, the book value should be transferred to construction in progress, no longer depreciated. Renewal and renovation projects to achieve the intended use of the state to fixed assets, and then depreciation according to the re-determination of the depreciation method, the estimated net salvage value and the remaining useful life of the depreciation.
(2) intangible assets: intangible assets do not exist in the renewal of the problem.