Patent

It is the absolute right issued by the responsible authorities in the state to any individual or facility that reaches a new product or method of production, and the patent holder has the absolute right to be the sole user of this invention and also the right to sell it to another party, and there is usually a specific period of time during which the law protects the owner of the right to the invention from any attacks or violations of this right by others. In the event that the enterprise purchases the patent from third parties, the purchase price plus other expenses for registering and transferring ownership of the right to use the asset represents the cost of the asset.

The enterprise may enter into judicial disputes as a result of the infringement of third parties on its right, if the lawsuit succeeds and the result is in favor of the enterprise, the costs can be considered a capital expenditure and added to the book value of the asset and is exhausted during the remaining life of the asset and if the lawsuit fails, the costs and the remaining part of the book value of the patent asset are treated as a loss over the period in which the patent proves the loss of its economic value. If the patent is reached that the way of research and development expenses, these are not capitalized. In the account of the original, but it is treated as a period expenses, and the cost of the patent is limited to the expenses of registration and publicity only

In the event of the emergence of new patents that lead to the obsolescence of the old ones or the loss of their economic value, the remaining part of the book value is considered a loss in the same period

If the establishment is able to make improvements or modifications in the right of invention that lead to an increase in its useful life, this requires the recalculation of the annual depletion or amortization premium on the basis of the adjusted useful life from the beginning of the period in which the amendment took place, without exceeding the legal life of the asset.