What are intangible fixed assets ? How to account for intangible fixed assets? The following article by MISA MeInvoice will provide you with relevant information on this content.
Table of Contents Hide
1. What are intangible fixed assets?
2. Principles of accounting for intangible fixed assets
3. Structure and content of account 213 – intangible fixed assets
3.1 Structure of account 213 – intangible fixed assets
3.2 Reflected content of account 213 – intangible fixed assets
Accounting instructions for some major economic transactions
4.1 Purchase of intangible fixed assets
4.2 Purchase of intangible fixed assets by deferred payment or installment payment
4.3 Purchase of intangible fixed assets in the form of exchange
4.4 Value of intangible fixed assets formed internally by the enterprise during the implementation phase
4.5 When purchasing intangible fixed assets such as land use rights
4.6 When intangible fixed assets are formed from the exchange of payment by means of documents related to capital ownership
4.7 When an enterprise is sponsored, donated, or given intangible fixed assets to be put into immediate use for production and business activities
When an enterprise receives capital contribution
in the form of land use rights, based on the land use rights transfer records
4.9 When there is a decision to change the purpose of use of investment real estate from land use rights to intangible fixed assets
4.10 When investing in subsidiaries, joint ventures and associates in the form of capital contribution with intangible fixed assets
4.11. Accounting for the sale and liquidation of intangible fixed assets is regulated the same as accounting for the sale and liquidation of tangible fixed assets.
Conclusion
1. What are intangible fixed assets?
What are intangible assets?
Intangible fixed assets are assets without physical form, representing an amount of invested value that meets the standards of intangible fixed assets, participating in many business cycles, such as some costs directly related to land use; costs of issuance rights, inventions, patents, copyrights… (According to the provisions of Clause 2, Article 2 of Circular No. 45/2013/TT-BTC).
Some examples of intangible fixed assets are as follows:
– Intellectual property rights, e.g. industrial property rights, copyrights.
– The right to bring economic benefits in civil contracts, for example: business rights, mineral exploitation rights.
– Non-contractual relationships of economic benefit to the parties, e.g. customer lists, databases.
2. Principles of accounting for intangible fixed assets
Clause 1, Article 37 of Circular 200/2014/TT-BTC stipulates the accounting principles for account 213 as follows:
First: Account 213 is used to reflect the current value and the increase and decrease of intangible fixed assets of the enterprise. Intangible fixed assets are assets that do not have a physical form, but have a determined value and are held by the enterprise, used in production and business, providing services or leased to other entities, in accordance with the standards for recording intangible fixed assets.
Second: The original price of an intangible fixed asset is all the costs that an enterprise must spend to acquire the intangible fixed asset up to the time the asset is put into use as expected, as follows
– The original cost of separately purchased intangible fixed assets includes the purchase price (less (-) trade discounts or rebates), taxes (excluding refundable taxes) and costs directly attributable to bringing the asset to its intended use
