Improvement of intangible assets


Intangible assets are property rights acquired by an entrepreneur, classified as non-current assets suitable for economic use and whose expected useful life is longer than one year. The acquisition may be a purchase, receipt in kind or receipt free of charge. But what is the improvement of the intangible asset? We explain.

Intangible assets include, in particular:

  • copyrights, related rights, licenses, concessions,
  • rights to inventions, patents, trademarks, utility and decorative models,
  • know-how,
  • acquired goodwill,
  • Research and development costs.

Initial value of intangible assets

When determining the initial value of an intangible asset, one should take into account how it was acquired. And so if it was:

  • purchase for consideration - it will be the purchase price,
  • free admission (also donation) - this will be the current market price,
  • acquisition in the form of in-kind contribution - it will be the value of the component declared in the articles of association, but not higher than the market value.

Intangible assets - depreciation rate

Intangible assets should be depreciated. The legislator did not impose exact depreciation rates, but indicated the minimum depreciation periods:

  • for licenses (sublicenses) for computer software and copyright - 24 months (maximum depreciation rate 50%),
  • for a license to display films and to broadcast radio and television programs - 24 months (maximum amortization rate of 50%),
  • for incurred costs of completed development works - 12 months,
  • for other intangible assets - 60 months (maximum depreciation rate of 20%).

Record of intangible assets

Intangible assets should be included in the register - the same that is intended for fixed assets. Such records should include:

  • ordinal number,
  • date of purchase,
  • date of acceptance for use,
  • specification of the document confirming the acquisition,
  • determination of intangible and legal value,
  • initial value,
  • depreciation rate,
  • the amount of depreciation.

The intangible asset should be in the records not later than in the month of its acceptance for use. Additionally, this fact should be documented with the OT proof.

Improvement of intangible assets

The improvement of the intangible and legal value was not provided for by the regulations (as is the case with fixed assets). Therefore, a distinction must be made between:

  • making expenditure on the already owned WNIP under the previously granted license for a computer program, therefore, the value of the acquired program update, regardless of the purchase value, is included directly in tax deductible costs,
  • a situation where the expense is related to the acquisition of a completely new, separate license in connection with the update of the computer program - it will be a separate intangible asset which should be depreciated.