Methods for calculating amortization on intangible assets. Depreciation of intangible assets: linear method

Amortization of intangible assets- This is a gradual write-off of the cost of intangible assets in the process of their production use. Depreciation of these assets is carried out using the straight-line (straight-line) method, i.e. in equal parts based on their initial cost, taking into account indexation.

Analysis of amortization of intangible assets is performed in the FinEkAnalysis program in the "Assessment of economic added value" block as Amortization of goodwill.

Enterprise solvency

Accounting for amortization of intangible assets

The enterprise sets the rates for writing off intangible assets independently within the limits of their full useful life (but not more than 10 years of continuous operation). Depreciation deductions are made until the residual value of the intangible asset reaches zero.

The cost of intangible assets is redeemed through amortization, unless otherwise provided by PBU 14/2000. Depreciation of intangible assets is performed by one of the following methods of calculating depreciation charges:

linear method;
diminishing balance method;
method of writing off the cost in proportion to the volume of products (works).

The application of one of the methods for a group of homogeneous intangible assets is carried out during the entire period of their useful life.

During the useful life of intangible assets, the accrual of amortization charges is not suspended, except in cases of conservation of the organization. The annual amount of accrual of depreciation deductions is determined:

with the linear method - based on the initial cost of intangible assets and the depreciation rate calculated based on the useful life - the use of this object;
in the case of the diminishing balance method - based on the residual value of intangible assets at the beginning of the reporting year and the depreciation rate calculated based on the useful life of this object.

Amortization of intangible assets

During the reporting year, amortization charges on intangible assets are charged monthly, regardless of the applied method of accrual, in the amount of 1/12 of the annual amount. In seasonal industries, the annual amount of amortization charges on intangible assets is accrued evenly over the period of the organization's operation in the reporting year.

With the method of writing off the cost in proportion to the volume of products (works), amortization is calculated based on the natural indicator of the volume of products (works) in the reporting period and the ratio of the initial value of the intangible asset and the estimated volume of production (works) for the entire useful life of the intangible asset.

Depreciation deductions for an intangible asset start from the first day of the month following the month of accepting this object for accounting, and are charged until the value of this object is fully paid off or this object is retired from accounting in connection with the assignment (loss) of the organization of exclusive rights to the results of intellectual activity ...

Depreciation deductions for an intangible asset stop from the first day of the month following the month of full repayment of the value of this object or writing off this object from the accounting records.

Depreciation charges on intangible assets are reflected in the accounting records of the reporting period to which they relate, and are accrued regardless of the results of the organization's activities in the reporting period.

Synonyms

Amortization of goodwill

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Intangible assets- a certain group of assets of economic entities that have value and generate income (or create conditions for earning income), but do not have physical content.

Amortization of intangible assets- deductions included in, for repayment of the gradual loss of value and depreciation of individual items of intangible assets during the established period of their useful life.

Intangible assets(Article 138 of the Civil Code of the Russian Federation) is an investment of funds in intangible objects that are used for a long time in economic activities and generate income for the enterprise or create conditions for normal activities and income (these are rights to industrial, intellectual property, natural resources, rights to inventions, industrial designs, trademarks, know-how, copyrights to publications, etc.)

In connection with the entry into force from January 1, 2001, the accounting regulations "Accounting for intangible assets" PBU 14/2000, approved by order of the Ministry of Finance of Russia dated October 16, 2000 No. 91n (hereinafter referred to as PBU 14/2000), are changed approaches both to the qualification of intangible assets, for which new definitions are introduced, and to the accounting of intangible assets themselves and the accounting of their use.

Intangible assets of commercial organizations are assets, part of the property of the enterprise of which meets the following conditions:

lack of material and material structure;
the ability to identify (distinguish) intangible assets from other forms of property;
use in the manufacture of products, provision of services, performance of work for the management needs of the organization;
use over a long period of time, i.e. the useful life should be more than 1 year;
acquisition of intangible assets for personal consumption, and not further resale;
the ability to bring economic benefits;
availability of duly executed documents confirming the existence of the asset itself and the exclusive right of the owner (patent, certificate and other documents);

Intangible assets from January 1, 2001 include objects of intellectual property (exclusive right to the results of intellectual activity):

the exclusive right of the patent holder to an invention, industrial design, or utility model;
exclusive copyright for computer programs and databases;
property right of the author or other rightholder to the topology of integrated circuits;
the exclusive right of the owner to the trademark and service mark, appellation of origin of goods;
the exclusive right of the patent holder to selection achievements.

At the same time, intangible assets include:

organizational expenses (expenses associated with the formation of a legal entity, recognized in accordance with the constituent documents as the contribution of participants (founders) to the authorized (joint) capital);
the business reputation of the organization, which, according to clause 27 of PBU 14/2000, is defined as the difference between the price of the organization (the acquired property complex as a whole) and the value according to the balance sheet of all its assets and liabilities.

Since January 1, 2001, intangible assets are no longer:

1 ... rights arising from copyright and other agreements on works of science, literature, art and objects of related rights, since the exclusive right of the author - an individual is inalienable from him and cannot be transferred by him to other persons. Art. 16 of the Law of the Russian Federation "On Copyright and Related Rights" provides that the author with respect to his work has exclusive rights to use the work in any form and in any way.

The exclusive rights of an author to use a work means the right to perform or authorize the following actions:

reproduce the work (the right to reproduce);
distribute copies of the work in any way: sell, rent, etc. (distribution right);
import copies of a work for distribution, including copies made with the permission of the exclusive copyright holder (import right);
publicly display the work (the right to public display);
perform a work in public (the right to public performance);
to communicate the work (including showing, performing or broadcasting) to the public by broadcasting and (or) subsequent broadcasting (the right to broadcast);
to communicate the work (including display, performance or broadcast) to the public by cable, wire or other similar means (the right to communicate to the public by cable);
translate the work (the right to translate);
to alter, arrange or otherwise rework the work (the right to rework).

The author's exclusive rights to use design, architectural, urban planning and landscape gardening projects also include the practical implementation of such projects. The author of the accepted architectural project has the right to demand from the customer the granting of the right to participate in the implementation of his project in the development of documentation for construction and in the construction of a building or structure, unless otherwise provided in the contract;

2 ... the rights to know-how (technologies, etc.), since they are not formalized by the relevant documents on state registration of the right to the results of intellectual activity;

3 ... housing stock objects that must be transferred to account 01 "Fixed assets" with the accrual of depreciation on them on off-balance sheet account 010 "Depreciation of fixed assets".

The accounting unit of intangible assets is an inventory item, which is assigned an inventory number. Intangible assets are depreciated on a straight-line basis; by way of decreasing balance; in proportion to the volume of products produced.

If the period of validity of intangible assets is not stipulated, then it is considered that the useful life is 20 years (but not more than the activity of the existence of the company)

Characteristics and valuation of intangible assets

Objects of civil rights can be not only things that have a natural, tangible form, but also property rights, as well as the results of intellectual activity.

In accounting, the concept of "intangible assets" is used to designate objects of property that do not have a material form.

In accordance with the Regulation on accounting No. 14/2000 "Accounting for intangible assets" and No. 4/99 "Financial statements of the organization", other regulatory documents, intangible assets can be considered assets that meet all of the following conditions:

Lack of material and material (physical) structure.
Possibility of identification (separation, separation) by the organization from other property.
Use in the manufacture of products, in the performance of work or the provision of services, or for the management of an enterprise.
Use over 12 months.
The entity does not intend to resell the asset in the near future.
The ability of an intangible asset to generate income in the future.
The presence of properly executed documents confirming the existence of the asset itself.

In accordance with the above conditions, intangible assets can be classified into:

exclusive right of the patentee;
exclusive copyright;
the exclusive right of the owner to the trademark and service mark, the name of the place of origin of the goods;
organizational costs;
business reputation of the organization.

It should be noted that the intellectual and business qualities of the organization's personnel, their qualifications and ability to work are not intangible assets, since these qualities cannot be separated from their carriers and cannot be used separately.

Intangible assets in accounting are measured at historical cost, which is equal to the sum of the actual costs of the enterprise for the acquisition (minus the reimbursable taxes -) or the costs of their creation, manufacture, as well as the costs of bringing them to the state in which they are suitable for use for the planned purposes. Actual expenses may include amounts paid:

under an agreement on the assignment of rights;
for information and consulting services;
for registration fees;
for customs and patent fees;
for non-refundable taxes;
for fees paid to intermediaries;
for other expenses.

The value of intangible assets, expressed in foreign currency, is subject to conversion into rubles at the exchange rate of the Central Bank of the Russian Federation in effect on the date of the asset acquisition.

Accounting for the receipt of intangible assets

Currently, there are no recommendations for documenting the movement of intangible assets.

In this regard, business entities must themselves develop the forms of the relevant documents.

The act of acceptance (transfer) of intangible assets can be drawn up in relation to the act of acceptance (transfer) of fixed assets, taking as a basis the standard form No. OS-1... In the acceptance certificate, it is necessary to reflect the value of the received intangible assets, their validity period, the developed rate of amortization deductions and other details necessary for the uniform accrual of depreciation on the acquired (created) objects of intangible assets.

The current instruction on the use of the Chart of Accounts for accounting of financial and economic activities of enterprises for summarizing in accounting information on the presence and movement of intangible assets belonging to an economic entity on the basis of ownership, provides for the application account 04 "Intangible assets"... The account is active, balance. The debit balance reflects the value of intangible assets belonging to this enterprise.

Debit turnover show the amount of intangible assets received by the enterprise (purchase, construction and
etc.).

Loan turnover of this account reflect the change in the value of intangible assets in connection with the accrual of amortization or disposal of intangible assets (depending on the type of intangible assets and the adopted policy of the enterprise).

On the specified account, intangible assets are taken into account in the initial assessment, which is determined:

by agreement of the parties (for objects contributed by the founders as a contribution to the authorized capital);
on the actual costs incurred for the acquisition and bringing to a state of readiness (for objects purchased for a fee from other legal entities and individuals);
by expert means (for objects received free of charge from other legal entities and individuals).

If the organization has several types of intangible assets of significant value, it is advisable to open sub-accounts for each type in accordance with the classification of intangible assets adopted by this organization, for example:

04-1 "Objects of intellectual property";
04-2 "Rights to use natural resources";
04-3 "Deferred Costs";
04-5 "Other objects", etc.

Analytical accounting for account 04 is carried out by types and individual objects of intangible assets.

The posting of intangible assets contributed by the founders on account of their contributions to the authorized capital of an economic entity is reflected: debit of account 08 "Investment in non-current assets", credit of account 75 "Settlements with founders", and after putting the assets into operation: debit 04 "Intangible assets" , credit 08 "Investments in non-current assets".

Objects of intangible assets acquired for a fee from other enterprises are credited first on debit 08 and credit 60 "Settlements with suppliers and contractors", and then transferred to account 04 by posting: debit of account 04 "Intangible assets", credit of account 08 "Investments in non-current assets".

To account for the acquired objects of intangible assets, subaccount 5 "Acquisition of intangible assets" is opened for account 08. The initial value of the intangible assets received free of charge is determined based on their market value as of the date of acceptance for accounting. The capitalization of assets received from other enterprises and persons free of charge, as well as those received from government agencies in the form of subsidies, is made on the debit of account 04 in correspondence with account 91 "Other income". The organization has the right to receive gratuitous receipts first to account 98 "Deferred income", and then, as depreciation is charged, write off the income to account 91.

For acquired intangible assets, the organization pays on the debit of account 19, subaccount "VAT on acquired intangible assets" in correspondence with accounts 60 and 76. After their payment and registration, VAT is debited from the credit of account 19 to the debit of account 68 "Calculations of taxes and fees ", subaccount" Calculations for VAT ".

Rice. 5.1. General scheme of correspondence of accounts for the acquisition and creation of intangible assets

Business reputation organization as an object can arise only as a result of the purchase and sale of the enterprise as a whole. Goodwill is the difference between the purchase price of an entity as a whole and the balance sheet value of all of its assets and liabilities at the date of the purchase.

Business reputation can be positive or negative. Positive is a premium to the price paid by the buyer in anticipation of future income. It is accounted for as a separate inventory item of intangible assets under the debit of account 04 "Intangible assets" and the credit of account 76 "Settlements with other debtors and creditors" and is amortized over 20 years by reducing its initial cost evenly.

Negative business reputation Is a discount from the price given to the buyer, which is accounted for as deferred income. Accordingly, the posting is made: the debit of account 76 "Settlements with different debtors and creditors" and the credit of account 98 "Deferred income". Negative goodwill is evenly referred to financial results as operating income: debit account 98 "Deferred income", credit account 91 "Other income and expenses".

Amortization of intangible assets

Intangible assets are depreciated monthly at rates calculated taking into account their initial cost and their useful life.

If it is not known, then one can proceed from a 20-year period, but not more than the period of the enterprise's activity.

Depreciation of intangible assets is accounted for on account 05 "Depreciation of intangible assets", except for objects for which the accrued depreciation amounts are written off directly to the credit of account 04 in correspondence with the debit of cost accounting accounts without using account 05 "Depreciation of intangible assets". Account 05 "Amortization of intangible assets" - passive balance sheet, has a credit balance. It is used to summarize information on accumulated depreciation on intangible assets owned by an enterprise.

On the debit of account 05, the write-off of the amounts of accrued depreciation is taken into account, and on the credit of the account - its accrual.

Enterprises can record depreciation on intangible assets in two ways:

With the accumulation of amortization amounts on account 05 "Amortization of intangible assets".
Direct write-off of depreciation without using account 05.

In the first case, the accrued amortization amount is charged to the debit of accounts for accounting for production costs (distribution costs) and the credit of account 05 "Amortization of intangible assets".

In the second, amortization of intangible assets is accounted for on the debit of the same accounts and the credit of account 04 "Intangible assets", monthly decreasing the initial cost of intangible assets. As a rule, in enterprises it is advisable to combine both methods of accounting for depreciation charges, which will be specified in the accounting policy of the enterprise.

Rice. 5.2. General scheme of correspondence of accounts when calculating amortization of intangible assets

Regulatory documents define the following methods for calculating depreciation:

linear method;
diminishing balance method;

At linear way the annual depreciation amount is equal to the original cost of intangible assets multiplied by the depreciation rate, which in turn is calculated based on the years of the asset's useful life.

At method of diminishing balance the annual amount of depreciation deductions is determined based on the residual value of intangible assets at the beginning of the reporting year and the depreciation rate calculated as in the previous method.

At method of writing off the cost in proportion to the volume of products (works), depreciation is calculated based on the natural indicator of the volume of products (works) in the reporting period, the ratio of the initial value of intangible assets and the estimated volume of products (works) for the entire period of useful life.

Fully amortized intangible assets are not depreciated, and the assets themselves are reflected in the accounting in a conditional valuation, with the attribution of the valuation amount to the financial results.

Accrual methods and accounting for amortization of intangible assets

The cost of intangible assets with definite useful lives is recovered through depreciation and amortization over their useful lives. Useful life is the period, expressed in months, during which the entity expects to use the intangible asset in order to obtain economic benefits.

Intangible assets for which it is impossible to reliably determine the useful life are considered intangible assets with an indefinite useful life, but such accounting items are not depreciated.

The useful life of an intangible asset is determined based on:

the period of validity of the organization's disposition for the result of intellectual activity or means of individualization and the period of control over the asset;
the expected life of the asset, during which the entity expects to receive economic benefits.

According to clause 28 of PBU 14/2007, there are the following three methods for calculating depreciation:

linear method;
diminishing balance method;
method of writing off the cost in proportion to the volume of products (works).

Let's consider each of these methods with a specific example.

Example... software product created by the organization and registered in accordance with the established procedure - 100 000 rubles. The useful life is 4 years. The depreciation rate is 25%. (100%: 4).

1st way: linear. In the straight-line method, depreciation is calculated based on the actual (original) value or the current market value (in case of revaluation) of an intangible asset on a straight-line basis over the useful life of this asset, similar to the calculation of depreciation of fixed assets.

Linear depreciation calculation

Actual (original) cost	Annual depreciation amount	Accumulated depreciation	Residual value

2nd way: diminishing balance. With the diminishing balance method, depreciation is determined based on the residual value at the beginning of the month, multiplied by a fraction, in the numerator of which is the coefficient established by the organization (not higher than 3), and in the denominator - the remaining useful life in months

Depreciation calculation using diminishing balance method

Actual (original) cost	Annual depreciation amount	Accumulated depreciation	Residual value
	(100,000 x 3/48) 6250
	(93 750 x 3/47) 5984
	(81 516 x 3/46) 5316

Method 3: a method of writing off the cost in proportion to the volume of products (works). With the method of writing off the cost in proportion to the volume of production (work) based on the natural indicator of the volume of production (work) per month and the ratio of the actual (initial) value of the intangible asset and the estimated volume of production (work) for the entire useful life of the intangible asset.

Example... The cost of the patent is calculated for the production of 100,000 pairs of shoes. The actual (initial) cost is 50,000 rubles. The useful life is 2 years.

Depreciation calculation in proportion to the volume of products produced

Actual (original) cost	Output volume	Annual depreciation amount	Accumulated depreciation	Residual value
		(50,000 x 70,000 / 100,000) 35,000

The method for determining the amortization of an intangible asset is reviewed annually by the organization for the need to clarify it. Depreciation deductions for intangible assets begin from the first day of the month following the month when this asset was accepted for accounting, and are charged until the value is fully paid off or this asset is written off the balance sheet.

During the useful life of intangible assets, the accrual of depreciation charges is not suspended.

The chosen option for accounting for depreciation should be fixed in the accounting policy of the organization.

The monthly accrued depreciation amounts are reflected in the accounting entry:

The debit of account 20 "Main production", 25 "General production costs", 26 "General business expenses", 44 "Selling expenses", 08 "Investments in non-current assets", 29 "Serving production and facilities", 97 "Prepaid expenses" and dr.

If, for some reason, depreciation on objects was not accrued, if an error is found in the records, correction is made in the period when they were identified:

Debit of account 91 "Other income and expenses", subaccount 2 "Other expenses"
Credit account 05 "Amortization of intangible assets".

The amounts of the correction referred to account 91 "Other income and expenses" are included in the structure of other expenses of the organization.

Other expenses also include the amount of accrued amortization on intangible assets provided for use by the copyright holder (licensor).

The acquired goodwill in accordance with clause 44 of PBU 14/2007 is amortized over 20 years (but not more than the life of the organization) only on a straight-line basis.

Write-off of the amount of accrued depreciation on retired objects of intangible assets (as a result of sale, gratuitous transfer under a gift agreement, under an exchange agreement, write-off, transfer to the authorized (pooled) capital, etc.) is recorded on the accounts by correspondence:

Debit of account 05 "Amortization of intangible assets"
Credit account 04 "Intangible assets", subaccount "Disposal of intangible assets".

To calculate depreciation for intellectual property objects, a monthly statement of depreciation of intangible assets is used.

The organization annually checks the method of calculating depreciation for the need to clarify it, which is caused by compliance with the requirement to obtain economic benefits from the use of an intangible asset. If the calculation of the expected inflow of economic benefits in the future has changed materially, then the method of depreciation of such an asset should be changed accordingly.

The organization has the authority to set the terms of use of intangible assets

In practice, most of the questions are caused by the correctness of determining the useful life of an asset, as well as the possibility of its revision.

The standard service life of the objects of intangible assets and the useful life of the objects of intangible assets used in entrepreneurial activity taken equal to it are determined based on the time of their use (service life) established by patents, certificates, licenses, relevant agreements and other documents confirming the rights of the copyright holder. In the absence of an indication of the time of use (service life) in them, these terms are established by the decision of the commission on the organization's depreciation policy (hereinafter referred to as the commission):

By means of individualization of participants in the civil circulation of goods, services (brand names, trademarks) - for a period of up to 40 years, but not more than the period of the organization's activity;

For objects of industrial property rights, with the exception of the above objects, - for a period of up to 20 years, but not more than the period of the organization's activity;

For other objects of intangible assets - for a period of up to 10 years, but not more than the period of the organization's activity (clause 20 of the Instruction on the procedure for calculating depreciation of fixed assets and intangible assets, approved by the decree of the Ministry of Economy, the Ministry of Finance and the Ministry of Construction and Architecture of the Republic of Belarus dated February 27, 2009 No. 37/18 / 6; hereinafter - Instruction No. 37/18/6).

At the same time, the commission may revise the specified terms, subject to the renewal or extension of the period of functioning of intangible assets (clause 24 of Instruction No. 37/18/6) |*| .

The accrual of depreciation on intangible assets in a productive way begins immediately from the date of their commissioning (clause 34 of Instruction No. 37/18/6).

The organization determines the methods of calculating depreciation independently, taking into account individual restrictions provided for in Instruction No. 37/18/6. So, the non-linear method of depreciation (direct method of the sum of the numbers of years, the inverse method of the sum of the numbers of years or the diminishing balance method) is not used when calculating depreciation on such types of intangible assets as brand names, trademarks (clause 41 of Instruction No. 37/18 / 6).

There are no other restrictions on the use of a particular method in relation to other types of intangible assets. In addition, Instruction No. 37/18/6 does not contain any restrictions on the use of a productive depreciation method for intangible assets.

The period over which the amortization of an intangible asset will be charged depends on:

From the presence of a specific period of use of the intellectual property object (service life) established by patents, certificates, licenses, relevant agreements and other documents confirming the rights of the copyright holder;

The type of intellectual property object.

Let's move on from theory to practical situations.

Situation 1. The right to use computer programs in the absence of a term for using the right

The organization takes into account the right to use computer programs in accordance with the license agreement, which stipulates that the licensee organization pays the licensor organization remuneration for the exclusive right to use the computer program module in the form of a lump-sum payment. The term for the use of the right is not specified in the agreement.

What is the useful life for amortization purposes for a granted right to use a computer program?

No more than 10 years.

As you can see, the license agreement does not contain a specific period (for example, 1 year, 4 years) for which the licensee organization transfers the exclusive right to use the computer program to the licensee organization.

Therefore, in order to determine the maximum period for calculating depreciation in accordance with clause 20 of Instruction No. 37/18/6, the organization must determine what type of intellectual property objects the right to use a computer program belongs to.

According to the legislation, computer programs are classified as objects of copyright (clause 1 of article 993 of the Civil Code of the Republic of Belarus). A similar rule is contained in sub. 7.1 p. 7 of the Instruction on accounting for intangible assets, approved by the Resolution of the Ministry of Finance of the Republic of Belarus dated April 30, 2012 No. 25.

As already noted, in relation to objects of intangible assets, except for the means of individualization of participants in the civil turnover of goods, services, as well as in relation to other objects of industrial property law, the useful life can be set up to 10 years, but not more than the period of the organization's activity (clause 20 of the Instruction No. 37/18/6).

Since a computer program does not belong to the objects of industrial property rights, its useful life should be set for a period of up to 10 years, but not more than the period of the organization's activity. The specific value of the useful life is established by the decision of the commission, taking into account the expected possible period of operation of the intangible asset in the process of entrepreneurial activity (clause 19 of Instruction No. 37/18/6) |*| .

In the situation under consideration, the document confirming the rights of the copyright holder (patent for an industrial design) contains an indication of the specific period of validity of the specified intangible asset (5 years) and 1 year remains until its expiration.

From the point of view of compliance with the aforementioned norm of Instruction No. 37/18/6, initially, when accepting an intangible asset for accounting, it is necessary to establish a useful life equal to the period remaining until the expiration of the patent, i.e. 1 year, since the decision to renew the patent has not yet been received.

At the same time, the commission has the right to revise the standard service life and (or) useful life of intangible assets, subject to the renewal or extension of their functioning (clause 24 of Instruction No. 37/18/6).

Therefore, after a decision is made by the registering authority to extend the term of the patent, the useful life of the intangible asset may be revised by the commission and extended in accordance with the new term of the patent for an industrial design. At the same time, from the moment the decision is made to revise the useful life, amortization is calculated based on the under-amortized cost of the intangible asset and the residual (taking into account the extension) useful life.

Situation 3. Transfer of rights to use the site

The organization entered into an agreement providing for the transfer of rights to use the site to it. This agreement confirms the rights of the copyright holder for the duration of the copyright.

How long can the useful life of the copyright object be established if the exclusive right is valid during the life of the author and 50 years after his death (clause 2 of article 20 of the Law of the Republic of Belarus of 05/17/2011 No. 262-З "On Copyright and Related Rights ")?

Up to 10 years.

In this situation, we are talking about an object of copyright (the right to use the site), the specific term of the right is not specified in the contract. However, it contains an indication that the rights of the copyright holder are valid for the duration of the copyright.

In some cases, a situation may arise when the specific period of validity of the right is not determined by the contract or other documents confirming the rights of the copyright holder. The contract can only contain an indication that the rights of the copyright holder are established for the duration of the copyright.

As noted in the question, the exclusive right is valid for the life of the author and 50 years after his death. At the same time, such a period established by law cannot be called a specific period for the use of property rights by this organization, since in reality its duration is not known in advance.

In the absence in the contract of a specific period for the use of an intangible asset, this period is established by the decision of the commission, except for the means of individualization of participants in the civil circulation of goods, services, as well as in relation to other objects of industrial property law. Therefore, the useful life can be set up to 10 years, but not more than the life of the organization (clause 20 of Instruction No. 37/18/6).

Situation 4. The right to use a computer program, taking into account its modernization

The organization, according to the license agreement, provides for the rights of the copyright holder to use the computer program for a period of 5 years. At the same time, in the process of using the program, the program is periodically upgraded (adding new modules).

Does an entity have the right to revise the useful life of an intangible asset from the beginning of any reporting year, similar to items of property, plant and equipment? If an intangible asset is being upgraded (adding new program modules), should its useful life be revised?

Revision of the standard service life and (or) useful life of intangible assets is possible only in 2 cases: subject to the renewal of their life or its extension (clause 24 of Instruction No. 37/18/6).

At the same time, one should remember the requirements of clause 20 of Instruction No. 37/18/6 on establishing the useful life of an intangible asset, equal to the time of their use (service life), established by patents, certificates, licenses, relevant agreements and other documents confirming the rights of the copyright holder |*| .

* Material on accounting as part of intangible assets of property rights to intellectual property is available to everyone on the website

Accordingly, if the document confirming the rights of the rightholder contains the validity period of the intangible asset, then regardless of the upgrades carried out, it is necessary to adhere to this period, since the organization will not be able to fully depreciate the value of the intangible asset during the validity period of the right to use it.

If the document confirming the rights of the rightholder does not contain an indication of the duration of the intangible asset, the useful life is set by the organization independently in accordance with clause 20 of Instruction No. organization, the commission may decide to revise it.

If the intangible asset remains unchanged, then the useful life of the intangible asset is not reassessed from the beginning of any reporting year.

Since January 1, 2008 a new classification of intangible assets was introduced according to the criterion of useful life - with a definite and indefinite period.

The useful life of intangible assets is determined by the organization when the object is accepted for accounting. The determination of the useful life is based on:

The validity period of a patent, certificate and other restrictions on the terms of use of intellectual property objects;

The expected life of this object, during which the organization can receive economic benefits (income);

The amount of products expected to be obtained using the intangible asset;

The period of control over the intangible asset.

For intangible assets for which it is impossible to determine the useful life, the rates of depreciation are established per 20 years (but not more than the period of the organization's activity). If it is impossible to establish the service life for intangible assets, it is prohibited to charge depreciation on them.

The service life of intangible assets must be taken into account in months.

Depreciation deductions are charged from the first day of the month following the month when the object is accepted for accounting, and are charged until the cost of this object is fully paid off or this object is retired from the accounting in connection with the assignment (loss) of the organization of exclusive rights to the results of intellectual activity.

Amortization of intangible assets produced in one of the following ways:

1) linear;

2) decreasing balance;

3) write-off of the cost in proportion to the volume of products (works).

The choice of the method for determining amortization for an intangible asset is made by the organization based on the calculation of the expected consumption of future economic benefits (income) from the use of the asset, including the financial result from the possible sale of this asset. In the event that the calculation of the expected consumption of future economic benefits (income) from the use of an intangible asset is not reliable, the amount of amortization charges for such an asset is determined on a straight-line basis.

Methods for calculating the depreciation of intangible assets need to be reviewed annually.

During the useful life of intangible assets, the accrual of amortization charges is not suspended, except in cases of conservation of the organization.

During the reporting year, depreciation deductions are calculated monthly, regardless of the method of accrual used, in the amount of 1/12 of the annual amount.

Depreciation deductions for intangible assets cease from the first day of the month following the month of full repayment of the value of this object or writing off this object from the accounting records.

Depreciation charges are reflected in accounting in one of the following ways:

1) by accumulating the corresponding amounts on a separate account:

D 20, 25, 26, 44 K 05 "Depreciation of intangible assets";

2) by reducing the initial cost of the object:

For objects of intangible assets, the organization can revalue no more often than once a year (at the beginning of the reporting year). The revaluation can be carried out both by a specialist appraiser and on its own by creating an appraisal commission.

The organization has the right to revalue homogeneous intangible assets at the current market value, determined according to the data of the active market of these objects.

When an organization decides to revalue intangible assets, it should be borne in mind that subsequently these assets should be revalued regularly so that the value at which they are reflected in accounting and financial statements does not materially differ from the current market value.

Compensated through depreciation. Depreciation of intangible assets (intangible assets) allows you to gradually transfer the value of assets to.

Depreciation of intangible assets is charged on a monthly basis, the calculated deductions are written off to the company's expenses. How the amortization of intangible assets is accounted for, what methods of accrual exist and what postings are made in accounting - we will analyze these issues in more detail.

Amortization of intangible assets

First of all, it should be noted that the calculation of amortization of intangible assets is regulated by PBU 14/2007.

Taking the object of intangible assets for accounting, it is necessary to determine the period during which the object can be used, receiving economic benefits from it, that is, the useful life.

It should be noted that there are intangible assets for which it is not possible to determine this period, for such objects depreciation is not charged.

We begin to accrue depreciation starting from the month that comes after the month when intangible assets are accepted for accounting.

Depreciation of intangible assets: methods of accrual

There are three methods for calculating the depreciation of intangible assets: the linear method, the method of decreasing balance and the method of writing off the value in proportion to the volume of production.

The organization independently determines for itself the most suitable method of accrual.

Recall that the straight-line method assumes straight-line depreciation over the entire useful life. That is, every month the same amount is debited to the costs of selling account 44 (for trade organizations) or to the cost of production of account 20 (for manufacturing enterprises).

This amount is determined at the beginning of the use of the asset by dividing the original cost by the total period of use. The resulting value will be the monthly depreciation deduction.

The diminishing balance method is that depreciation is calculated based on the residual value of the asset and the useful life.

Monthly, when calculating, the residual value of intangible assets at the beginning of the month is taken and multiplied by a coefficient that cannot be more than 3 (the organization sets it for itself), then the resulting value is divided by the useful life in months. The resulting depreciation amount is expensed. Thus, every month the depreciation deductions will be less and less and by the end of the intangible assets use period will be reduced to zero.

The last method of writing off the cost in proportion to the volume of production assumes the dependence of depreciation on the ratio of the volume of production that is planned to be produced for the entire period of operation and actually produced in a month.

With this method, monthly deductions are determined as follows: the volume of products (work) produced per month (in rubles) is multiplied by the actual cost of intangible assets and divided by the estimated volume of production for the entire period of use (in rubles).

The choice of the method for calculating the depreciation of intangible assets must be done by analyzing the economic feasibility of each method.

The linear method is convenient in that every month we write off the same amount, you do not need to constantly calculate it.

The second method is convenient if you need to write off the value of an asset as soon as possible and return the money for their further investment, for example, to purchase a new intangible asset or to improve an existing one.

The chosen method must be reflected in the accounting policy of the enterprise, read about the accounting policy.

Depreciation of Intangible Assets: Transactions

It is convenient to use a specially created account 05 "Depreciation of intangible assets" to account for deductions. On the credit of this account, amortization is accumulated and written off to the debit of accounts 20 or 44.

Postings:

D20 (23, 25, 26) K05 - depreciation on intangible assets for a manufacturing enterprise was charged.

D44 K05 - for a trade enterprise.

When the object of an intangible asset is retired (written off), the amortization accumulated for the entire period of use is written off from the debit of account 05 to the credit of account 04, after which the residual value of the object is determined, according to which it will be written off. It is possible to write off the cost of an object directly from the account of this object by posting K04 D 20 (44).

Video lesson "Accounting for amortization of intangible assets: examples, transactions"

In the video lesson, the expert of the site “Accounting for Dummies”, chief accountant Natalya Vasilievna Gandeva explains in detail about accounting and accounting features for the amortization of intangible assets in an organization, shows postings and practical examples ⇓

You can download the slides for the video tutorial at the link below.