Accounting of intangible assets should be carried out in accordance with the standards PBU 14/2007. These Provisions are cases when intangible assets (IA) may be deducted from the account, in particular:
- with the full expensing of their value as a result of depreciation;
when unfit for further use and loss of revenue.
- in the case of moral depreciation;
when the transition of the exclusive right of ownership to other persons;
- for the transfer of intellectual property in the form of shares in the share capital of any organization;
- when detecting short according to the results of the inventory;
- in other cases when necessary.
The above points lists the accounting entries that need to be done in the case of write-off of intangible assets from the accounts of accounting. So, the entire amount accumulated amortization intangible assets must be deducted from the account transaction Debit 05 – Credit account 04, the residual value of intangible assets should be deducted from the account transaction Debit account 91 Credit account 04. All expenses incurred in connection with the disposal of intangible assets and the amount of VAT on sold and donated intangible assets are written off in the Debit of account 91. The entire amount of the proceeds from the sale or disposal of intangible assets is written off on Credit accounts 91.
As a result of accounting transactions on the account 91 remains revenue (loss) generated as a result of the sale or other disposal of intangible assets. Then, the obtained financial result charged to account 99. Each accountant must be remembered that the revenues from this operation must be accounted for in the period to which they belonged, and gratuitous transfer and sale of intangible assets subject to VAT.
The procedure for write-off of intangible assets begins with the publication by the head of the organization of the order on the establishment of a Committee to assess the state of IA and certify the necessary to cancel it from the register. Created, the Commission shall establish the reasons for the write-off of intangible assets and specify them in the relevant act. On the basis of it accounting service makes respective marks in the intangible asset accounting card.
If the intangible assets become the property of another organization, the fact of their sale or donation must be recorded in accompanying documents: the act of transfer and acceptance and the invoice issued on behalf of the organization-the owner of the intangible asset.
- with the full expensing of their value as a result of depreciation;
when unfit for further use and loss of revenue.
- in the case of moral depreciation;
when the transition of the exclusive right of ownership to other persons;
- for the transfer of intellectual property in the form of shares in the share capital of any organization;
- when detecting short according to the results of the inventory;
- in other cases when necessary.
What wires to formalize the write-off of intangible assets from the account
The above points lists the accounting entries that need to be done in the case of write-off of intangible assets from the accounts of accounting. So, the entire amount accumulated amortization intangible assets must be deducted from the account transaction Debit 05 – Credit account 04, the residual value of intangible assets should be deducted from the account transaction Debit account 91 Credit account 04. All expenses incurred in connection with the disposal of intangible assets and the amount of VAT on sold and donated intangible assets are written off in the Debit of account 91. The entire amount of the proceeds from the sale or disposal of intangible assets is written off on Credit accounts 91.
As a result of accounting transactions on the account 91 remains revenue (loss) generated as a result of the sale or other disposal of intangible assets. Then, the obtained financial result charged to account 99. Each accountant must be remembered that the revenues from this operation must be accounted for in the period to which they belonged, and gratuitous transfer and sale of intangible assets subject to VAT.
What documents confirm the fact of write-off of intangible assets
The procedure for write-off of intangible assets begins with the publication by the head of the organization of the order on the establishment of a Committee to assess the state of IA and certify the necessary to cancel it from the register. Created, the Commission shall establish the reasons for the write-off of intangible assets and specify them in the relevant act. On the basis of it accounting service makes respective marks in the intangible asset accounting card.
If the intangible assets become the property of another organization, the fact of their sale or donation must be recorded in accompanying documents: the act of transfer and acceptance and the invoice issued on behalf of the organization-the owner of the intangible asset.
