AN EXPLORATION ON THE AMORTIZATION OF INTANGIBLE ASSETS

Intangible assets can make profit for the business enterprises by participating in the business activities, but at the same time their value shrinks continuously. To amortize the intangible assets is the accounting method used to describe the shrinkage. The three factors affecting intangible assets amortization are discussed respectively. Firstly,the difference between the cost and the relative expense of intangible assets in defining the amortization base, and distinguishes the specific cost composition of different intangible assets is emphasized. Secondly, while defining the amortization period,following the principle of conservatism and the principle of flexibility is suggested, and taking the shorter one between the beneficial period and effective period as the maximum. At last,the rule that straight line method is the only method of intangible assets amortization is questioned.Because the intangible assets renew quickly, it advocates that the accelerated amortization methods can be adopted in the amortization of some intangible assets.