What is a Calculated Intangible Value?

The provision for impairment of intangible assets is an accounting subject, which is used for the accounting of intangible assets, that is, a bookkeeping account for corporate financial management.

Provision for impairment of intangible assets

The provision for impairment of intangible assets is an accounting subject, which is used for the accounting of intangible assets, that is,

I. Accounting Enterprises

Provision for impairment of intangible assets:

At the end of the period, if the book value of the intangible assets held by the enterprise is higher than its recoverable amount, it shall be based on the difference.

Borrow: asset impairment loss-provision for impairment of intangible assets

Loan: provision for impairment of intangible assets

Once the impairment loss of intangible assets is accrued, it cannot be reversed during the holding period

The accounting system requires enterprises to check the book value of intangible assets on a regular basis. If the book value is higher than the recoverable amount, it should make provision for impairment of intangible assets and include it in the asset impairment provision for the current period. The value of intangible assets was restored, and the new standard in 2007 stipulated that the impairment provision had been made and could not be reversed. It is also stipulated that when the intangible assets are impaired, adjustments shall be made to the amortization amount withdrawn within their useful lives. To dispose of an intangible asset, the intangible asset impairment provision for the intangible asset must be carried forward accordingly. ^[1]

The provision for impairment of intangible assets provided by the enterprise is not contingent because it is a contingent expenditure. Therefore, it cannot be deducted before income tax. It should be subject to tax adjustment and additional treatment; but the impairment of intangible assets written off due to transfer and disposal of intangible assets Preparations should allow enterprises to make opposite tax adjustments, that is, reduce taxable income.

For example

For example: A company transferred a patented technology right in January 2003 and obtained 160,000 yuan in revenue. The patented technology was purchased in January 2001 at a cost of 180,000 yuan when acquired, with an amortization period of 10 years. On December 31, 2001, RMB 10,800 was withdrawn. The tax issues involved and accounting treatment are as follows:

Accounting treatment and tax-related issues in 2001.

When purchasing intangible assets in January 2001:

Borrow: Intangible assets 180 000

Loans: Bank deposits of 180,000 for intangible assets purchased should be recorded at the actual payment.

When amortizing the cost of intangible assets monthly in the year:

Borrow: Management Fee 1500

Loan: Accumulated amortization of 1500

When making provision for impairment of intangible assets on December 31, 2001:

Borrow: Asset impairment loss-provision for impairment of intangible assets 10800

Loan: Provision for impairment of intangible assets 10,800

The total cost of amortizing intangible assets in 2001 was 18,000 yuan, the amortized value at the end of 2001 was 162,000 yuan, and the book value of intangible assets at the end of 2001 was 151200 yuan (162000-10800). The impact of this intangible asset on the accounting statements in 2001 includes amortized intangible asset costs of 18,000 yuan and provision of impairment losses of 10,800 yuan, and a total impact of 28,800 yuan of profit. When reporting income tax in 2001, the tax law only allowed the deduction of the amortized intangible asset cost of 18,000 yuan before the income tax and the deduction of the intangible asset impairment allowance of 10,800 yuan. Therefore, the taxable income should be increased by 10,800 yuan.

Accounting and tax-related issues in 2002.

When amortizing the cost of intangible assets monthly in 2002: Borrowing: Management expenses 1400 (151200 ÷ 9 ÷ 12) Credit: Accumulated amortization 1400

The problem that should be noticed in actual work is that since the provision for impairment of intangible assets was made at the end of 2001, starting from the principle of prudence, it must be recalculated from the book value of 151200 yuan in the next month and its useful life is 9 years. The monthly amortization of intangible asset expenses in 2002 cannot be the same as the monthly amortization amount in 2001. The monthly intangible asset expenses that should be amortized in 2002 are 1,400 yuan.

The total amortized cost of intangible assets was RMB 16,800 in 2002. At the end of 2002, the amortized value of intangible assets was RMB 145,200 (162000-16800), and the book value was RMB 134,400 (145200-10800). The impact of this intangible asset on the accounting statements in 2002 was only amortized intangible asset cost of 16,800 yuan, and the impact of profit of 16,800 yuan. When applying for income tax in 2002, since the tax law does not consider the impact of the provision for impairment of intangible assets on the amortization of intangible assets, the amortization cost of intangible assets that can be deducted in the current year should be determined according to the historical cost of the intangible assets. 10) Instead of the amortization expense of intangible assets confirmed by accounting of 16,800 yuan, the taxable income should be reduced by 1,200 yuan.

Accounting and tax-related issues in 2003.

Accounting treatment on sale in January 2003:

Borrow: bank deposit 160000

Provision for impairment of intangible assets

Accumulated amortization

Loan: 180,000 intangible assets

Tax payable --- Business tax payable 8000

Tax payable --- payable urban construction tax 560

Other payables --- educational surcharge 240

Asset disposal income

Although the intangible asset disposal gain recognized in the current accounting period is 16800 yuan, it should actually be 6000 yuan (16800-10800), or it should be understood as a disposal income of 160,000 yuan, a disposal cost of 145,200 yuan, and a disposal tax of 8,800 yuan (8000 + 560 + 240) The actual disposal income is 6000 yuan.

However, from the perspective of tax law, the taxable cost of disposal of intangible assets is 144,000 yuan (180,000-18000-18000), and the disposal income is 7,200 yuan (160,000-144,000-8800), instead of the accounting-recognized disposal cost of 145,200 yuan ( 180000-18000-16800), the disposal income is 6000 yuan (160,000-145200-8800), and the difference in disposal income is 1,200 yuan.

When applying for income tax in 2003, the taxable income should be increased by 1,200 yuan (7200-6000). At the same time, the intangible asset impairment provision resold due to disposal of intangible assets is 10,800 yuan. The taxable income should be reduced by 10,800 yuan , Reduce the total taxable income of 9,600 yuan (10800-1200).

In actual work, it should be noted that the intangible asset costs that are less amortized after the provision for impairment of the enterprise should be directly adjusted for tax in the current period. It cannot be interpreted unilaterally as the amortization costs of intangible assets recognized by tax law must not exceed accounting The cost of intangible assets can also not be used as a time difference to allow enterprises to deduct less amortized intangible asset costs when disposing of intangible assets or after the end of amortization period.