Modern companies widely use all kinds of intangible assets in their activities. Over time, they lose their useful qualities or are subject to obsolescence. In this case, they must be written off from the register, moreover, this operation is accompanied by the preparation of supporting documents and entering the corresponding accounting entries into the database.
Accounting for intangible assets should be carried out in accordance with the norms of PBU 14/2007. These Regulations list cases when intangible assets (intangible assets) can be written off from the register, in particular:
- with full write-off of their cost as a result of amortization;
- in case of unsuitability for further use and loss of profitable qualities;
- with obsolescence;
- upon transfer of exclusive ownership rights to other persons;
- when transferring intellectual property objects in the form of a share in the authorized capital of an organization;
- if a shortage is identified based on the results of the inventory;
- in other cases, when necessary.
What transactions to write off intangible assets from the accounting
The aforementioned Provisions list the accounting entries that must be made in case of writing off intangible assets from accounting accounts. So, the entire amount of accumulated depreciation of intangible assets should be written off with the posting Account debit 05 - Account credit 04, the residual value of intangible assets should be written off with the posting Account debit 91 - Account credit 04. All expenses incurred in connection with the disposal of intangible assets, and also the amount of VAT on the sold and donated intangible assets are written off to the Debit of account 91. The entire amount of proceeds from the sale or disposal of intangible assets is written off to the Credit account 91.
As a result of the accounting entries made, the amount of revenue (loss) formed as a result of the sale or other disposal of intangible assets remains on account 91. Then the resulting financial result is written off to account 99. Each accountant must remember that income from this operation must be recorded in the period to which they belonged, and the donation and sale of intangible assets are subject to VAT.
What documents to confirm the fact of writing off intangible assets
The procedure for writing off intangible assets begins with the issuance by the head of the organization of an order on the creation of a commission, which must assess the condition of intangible assets and certify the need to write off it from the register. The created commission must establish the reasons for writing off intangible assets and indicate them in the relevant act. Based on it, the accounting service makes the appropriate marks in the intangible assets accounting card.
If intangible assets are transferred to the ownership of another organization, then the fact of their sale or gratuitous transfer must be recorded in the accompanying documents: the acceptance certificate and the invoice issued on behalf of the organization-owner of the intangible assets.
