Accounting for retirement of intangible assets - Accounting financial accounting

Accounting for retirement of intangible assets

The value of an NMA that is retired or unable to bring economic benefits to the organization in the future is subject to write-off from accounting.

The retirement of an NMA can occur for the following reasons:

- termination of the validity of the organization's right to the result of intellectual activity or a means of individualization;

- transfer under an agreement on alienation of the exclusive right to the result of intellectual activity or to a means of individualization;

- transfer of the exclusive right to other persons without a contract;

- termination of use due to obsolescence;

- transfer in the form of a contribution to the authorized capital of another organization;

- transfer under the barter agreement, donations;

- entering into the account of a contribution under a simple partnership agreement (a joint activity agreement);

- identifying shortages.

Simultaneously with writing off the value of the NMA, the amount of accumulated depreciation is to be written off.

Revenues and expenses from the write-off of the NMA are related to the financial results of the organization as other income and expenses.

To account for the retirement of the NMA, there is an active-passive account 91 "Other income and expenses."

In the credit of account 91/1 & quot; Other income & quot; relate revenue (income) from sales (transfer). In the debit of account 91/2 & quot; Other costs & quot; include VAT and expenses directly related to the retirement of the NMA, regardless of the reason for their retirement.

By comparing the loan turnover and the debit of the account 91 & quot; Other income and expenses & quot; calculate the financial result from the retirement of intangible assets. Excess of the credit turnover of account 91 over debit turnover testifies to the received profit, and the excess of the debit turnover of account 91 over the credit shows the amount of the received loss.

Consider the economic operations to retire the NMA, depending on the reason for their retirement:

- accounting for retirement of intangible assets when they are written off :

D 05 "Amortization of intangibles";

By 04 "Intangible Assets & quot; - depreciation accrued on the retired asset of the NMA was written off.

D 91/2 & quot; Other costs & quot ;;

By 04 "Intangible Assets & quot; - the residual value of the retired NM A was written off;

D 99 & quot; Profits & Losses & quot ;;

To 91/9 & amp; Balance of Other Income & Expenses & quot; - the financial result (loss) from the write-off of the NMA object is determined;

- Accounting for the retirement of intangible assets when they are sold:

D 76 "Settlements with other debtors and creditors";

To 91/1 & quot; Other Income & quot; - reflects the sale value of the NMA facility, including VAT;

D 91/2 & quot; Other costs & quot ;;

To 68, "Calculations with the budget for taxes and fees" - VAT accrued on the sold objects of the NMA;

D 05 "Amortization of intangibles";

By 04 "Intangible Assets & quot; - depreciation on the retired assets of the NMA was written off;

D 91/2 & quot; Other costs & quot ;;

By 04 "Intangible Assets & quot; - the residual value of the intangible asset was written off;

D 91/2 & quot; Other costs & quot ;;

To 76 "Settlements with other creditors and debtors" - Expenses directly related to the sale of NMA facilities were written off;

D 91/9 "Balance of other income and expenses";

To 99 & quot; Profits & Losses & quot; - the financial result (profit) from the sale of the NMA object was determined;

D 99 & quot; Profits & Losses & quot ;;

To 91/9 & amp; Balance of Other Income & Expenses & quot; - the financial result (loss) from the sale of the NMA object is determined;

D 51 & quot; Settlement accounts & quot ;;

To 62 & quot; Settlements with buyers & customers & quot; - payment for the sold object of the NMA, including VAT;

- accounting for the retirement of intangible assets when transferring them to the equity account:

D 08/5 "Acquisition of intangible assets";

To 60 & quot; Settlements with suppliers and contractors & quot; - the cost of the acquired object of NML (without VAT) is reflected;

D19/2 & quot; VAT on acquired intangible assets & quot ;;

To 60 & quot; Settlements with suppliers and contractors & quot; - VAT accrued on acquired NMA;

D 60 "Calculations with suppliers and contractors";

To 51 & quot; Settlement accounts & quot; - payment to the supplier of the NMA;

D 08/5 "Acquisition of intangible assets";

To 19/2 & quot; VAT on acquired intangible assets & quot; - VAT on purchased NMA is included in the cost of the acquired object;

D 04 & "Intangible Assets & quot ;;

By 08/5 & quot; Acquisition of intangible assets & quot; - reflects the initial value of the NMA facility, including VAT;

D 58/1 & "Shares and shares";

To 76 "Settlements with different debtors and creditors" - reflects the debt on the contribution to the authorized capital of another organization by the value of the original or residual value of the transferred object IMA;

D 76 "Settlements with different debtors and creditors";

By 04 "Intangible Assets & quot; - the transfer of the object of the NMA to the account of the contribution to the authorized capital of another organization in the amount of its original value is reflected;

- accounting for the retirement of intangible assets when donated :

D 05 "Amortization of intangibles";

By 04 "Intangible Assets & quot; - the depreciation amount accrued on the NMA object at the time of transfer is written off;

D 91/2 & quot; Other costs & quot ;;

By 04 "Intangible Assets & quot; - the residual value of the gratuitously transferred object of the NMA was written off;

D 91/2 & quot; Other costs & quot ;;

To 68, "Calculations with the budget for taxes and fees" - VAT accrued on the market value of a non-reimbursed object of the NML;

D 99 & quot; Profits & Losses & quot ;;

To 91/9 & amp; Balance of Other Income & Expenses & quot; - the financial result (loss) from the gratuitous transfer of the NMA object was determined.

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