The provision for impairment of intangible assets is an accounting provision to reflect the decline in the value of intangible assets or potential losses. The following are the main accounts involved in the provision for impairment of intangible assets:
1.Intangible assets: The intangible assets account records the value of intangible assets owned by the company, such as patents, trademarks, licensing rights, etc.
2.Impairment provision: The impairment allowance account is used to record the amount of impairment provision for intangible assets. This is a liability account that reflects the company's concern about the decline in the value of intangible assets.
3.Impairment loss: The impairment loss account is used to record losses arising from the impairment of intangible assets to reflect the actual decline in the value of the assets.
When the company believes that the intangible assets held by the company are at risk of impairment, the accountant shall make corresponding provision for impairment of intangible assets in the financial statements in accordance with relevant accounting standards and auditing requirements. Doing so helps ensure that the financial statements accurately reflect the company's financial position and performance.
It should be noted that the specific operation of impairment provisions and the disclosure requirements for financial statements may vary from region to region and relevant regulations. In practice, companies should consult with a professional accountant or financial advisor to ensure compliance with applicable accounting standards and regulations.