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Are patents intangible assets?
patents are intangible assets as these have not physical existence. patent is a right to use something which is not physical that's why it is an intangible asset.
Is capital leases an intangible asset?
No, Capital lease is for tangible assets only so it is tangible assets. Capital lease is to acquire any assets for use in business so that asset is a visible thing so not intangible asset.
What is the definition of internally generated intangible asset?
Internally generated intangible assets mean those assets which are created by the firm by the use of its own Intellectual Properties, that is, their own knowledge for example the Goodwill, Patents to produce a particular product, Copyrights etc..
What accounts the assts division should contain?
2 main typrs of assets : A- Current Assets B- nonCurrent Assets Current assets include Cash and any other items which can convert to cash within one year , Examples of Current assets are Cash , Acc. Rec. , Inventory , Prepaid Expenses NonCurrent Assets : items can't be easily Converted into Cash & will use for extended period of time B-NonCurrent Assets include 1-Fixed Assets " Tangible Assets " : Land, building , office furniture , vehicle ... 2- Intangible Assets : GoodWill , Patent , Trademark... 3- Long Term Investment : Bonds, Security & notes
How to amortize Intangible assets?
Only to amortize intangible assets which are recognised as finite useful life. There are tow models, one is cost model, another is revaluation model. The way to charge intangible assets' amortisation is same as charging depreciation on physical non current assets. Carrying amount (net book value) is equal cost or re-valuated amount less any subsequent accumulated amortisation and any impairment losses. However, Revaluations should be regularly made so the carrying amount does not differ from the recoverable amount (it is the higher amount of net realisable value or value in use) at the end of the reporting period. On the other hand, If the intangible assets are recognised as definite useful life, there is no need to charge amortisation on the profit and loss. But annually impairment test should be carried out. A impairment loss or a revaluation surplus will be adjusted on both income statement and balance sheet. Hope it is helpful!
Are patents intangible assets?
patents are intangible assets as these have not physical existence. patent is a right to use something which is not physical that's why it is an intangible asset.
Is capital leases an intangible asset?
No, Capital lease is for tangible assets only so it is tangible assets. Capital lease is to acquire any assets for use in business so that asset is a visible thing so not intangible asset.
What is a sentence for the word intangible?
Intangible means something that you cannot directly see, but know it is present. For instance, when a company produces a balance sheet, under its assets column sometimes labels some assets as "intangible assets." This could mean something like a certain catchphrase the company has, goodwill, etc. A sentence I would use for this would be: When confronted by a potential investor about the company's intangible assets, the CFO replied, "Don't you know our catchphrase?"
What is the definition of internally generated intangible asset?
Internally generated intangible assets mean those assets which are created by the firm by the use of its own Intellectual Properties, that is, their own knowledge for example the Goodwill, Patents to produce a particular product, Copyrights etc..
Intangible assets valued and reported in financial statement?
Intangible assets are reported by a company if they meet certain criteria. For example, if a company were to purchase a certain technology that it plans to use in its new product, then that technolgical intangible asset would be recorded on the balance sheet of the acquring company. However, if a company creates its own technology it is less likely that they will be able to record an asset for that development, in which case, the costs will be reflected immediately in the Company's profit and loss statement.
What certificates are issued after the real property rights are registered in China?
The certificates regarding land are: Certificate for Use of State Land, Certificate for Ownership of Collective Land, Certificate for Use of Collective Land and Certificate for Third Party Rights. State land use rights for construction and state land use rights for agriculture are recorded in the Certificate for Use of State Land. Collective land use rights for construction, land use rights for residence and collective land use rights for agriculture are recorded in the Certificate for Use of Collective Land. The mortgage and servitude may be recorded in the Certificate for Third Party Rights. The certificates regarding housing are: Certificate for Housing Ownership and Certificate for Third Party Rights.
What are allocated land use rights in China?
In China, allocated land use rights mean the rights allocated by the government to land users to use land free of charge. In some events, land users are required to pay fees amounting to the site use fee. For allocated land use rights, government does not set the fixed term of land use. But it also means that the government has the right to recover land use rights at any time.
What are some examples of fixed capital?
fixed assets are assets that are use in the purchasing of fixed assets example: buildings, land , equipment etc
What is land allocation in China?
Land allocation is one of methods for land users to acquire land use rights from the government at the first tier market of land. As a general rule land users are not required to pay any fees to the government to acquire land use rights by allocation. But exceptions to the general exist, i.e., under certain circumstances land users are required to pay fees amounting to the site use fee. Unlike granted land use rights, the government does not set a fixed term for allocated land use rights. However, the government reserves the right to recover land use rights at any time. Historically, most land use rights were allocated to land users at no cost in China. Currently land use rights are only allocated for projects involving public interest such as military facilities or government buildings.
What accounts the assts division should contain?
2 main typrs of assets : A- Current Assets B- nonCurrent Assets Current assets include Cash and any other items which can convert to cash within one year , Examples of Current assets are Cash , Acc. Rec. , Inventory , Prepaid Expenses NonCurrent Assets : items can't be easily Converted into Cash & will use for extended period of time B-NonCurrent Assets include 1-Fixed Assets " Tangible Assets " : Land, building , office furniture , vehicle ... 2- Intangible Assets : GoodWill , Patent , Trademark... 3- Long Term Investment : Bonds, Security & notes
Can land users continue to enjoy land use rights after they expire in China?
In China it depends on the purpose for which the land is being used. For residential use, after the term of residential land use rights expires, it will be automatically extended. For non-residential use, when the term of land use rights specified in the land grant contract is due to expire, if land users need to continue to use the land, they are required to apply for an extension of the term no later than 1 year prior to the expiration; unless the land needs to be recovered for public interest, the application must be approved. When the term of land use rights expires, if land users fail to apply for an extension of land use rights, or its extension is disapproved, the land use rights will be recovered by state without any compensation.
What is the difference between rent and royalty?
Rent is the consideration payable for the use of tangible assets i.e. Building and machinery etc. Royalty is the consideration payable for the use of special right in a tangible or intangible asset.
