How to capitalize a license

A license is a document that confirms permission to carry out a specific type of activity. Upon its acquisition, the organization bears expenses that must be reflected in accounting and tax accounting.

Instruction manual

1

Post the license after its receipt on the basis of supporting documents to it at the actual cost specified in these documents. If, in accordance with PBU 14/2007, the acquired license can be attributed to intangible assets (by the term of use and its value), then when it is capitalized, make accounting entries: Debit of account 08-5 "Acquisition of intangible assets", Credit of account 60 "Settlements with suppliers "(76" Settlements with various debtors and creditors "). Refer to the debit of account 08-5 all costs associated with acquiring a license. Then make the transaction: Debit of account 04 “Intangible assets”, Credit of account 08-5 “Acquisition of intangible assets” - the license is capitalized. Issue an intangible asset accounting card. Monthly write off part of the cost of the license for other costs associated with production and sale, through accrual of depreciation by posting: Debit 26 "General expenses", Credit 05 "Depreciation of intangible assets".

2

Include the cost of the license and the costs of its acquisition as part of general business expenses, if it cannot be attributed to an intangible asset due to the absence of signs defined in PBU 14/2007. In accounting, make the transaction: Debit of account 26 "General expenses", Credit of account 60 "Settlements with suppliers" (76 "Settlements with different debtors and creditors"). In tax accounting, the amount of the cost of acquiring a license is included in other expenses of the organization related to production and sale. They will reduce the income tax base for the accounting period.

3

If your organization carries out activities for which licensing is canceled by law No. 99-FZ, then you may have an “underestimated" cost of the license. Make an accounting entry: Debit 91-2 “Other expenses”, Credit 97 “Deferred expenses” - the remaining value is written off. In tax accounting, at a time, attribute this amount to other expenses of the organization.

note

Approve the procedure for writing off license costs in the organization’s accounting policy.

PBU 14/2007