Ministry of Finance, Explanations of Enterprise Accounting Guidelines No.5

财政部企业会计准则解释第5号

January 10, 2013 | BY

CLP Temp &

Identification of intangible assets clarified for mergers of enterprises not under the same control

Clp Reference: 3100/12.11.05 Promulgated: 2012-11-05 Effective: 2013-01-01

Issued: November 5 2012
Effective: January 1 2013


Main contents: In a merger of enterprises that are not under the same control, when the buyer carries out initial confirmation of the seller's assets acquired in the enterprise merger it shall fully identify and reasonably determine the intangible assets owned by the sellers but not confirmed in the seller's financial statements, and if they satisfy either of the conditions set forth below, they shall be confirmed as intangible assets:

(1) they originate in contractual rights or other statutory rights; or

(2) they can be separated or divided from the seller, and can be sold, transferred, licensed, leased or exchanged individually or together with the relevant contract, assets and liabilities.

These Explanations shall be effective as of January 1 2013. There is no requirement for retroactive adjustment.

clp reference:3100/12.11.05 issued:2012-11-05 effective:2013-01-01

Issued: November 5 2012
Effective: January 1 2013


Main contents: In a merger of enterprises that are not under the same control, when the buyer carries out initial confirmation of the seller's assets acquired in the enterprise merger it shall fully identify and reasonably determine the intangible assets owned by the sellers but not confirmed in the seller's financial statements, and if they satisfy either of the conditions set forth below, they shall be confirmed as intangible assets:

(1) they originate in contractual rights or other statutory rights; or

(2) they can be separated or divided from the seller, and can be sold, transferred, licensed, leased or exchanged individually or together with the relevant contract, assets and liabilities.

These Explanations shall be effective as of January 1 2013. There is no requirement for retroactive adjustment.

clp reference:3100/12.11.05 issued:2012-11-05 effective:2013-01-01

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