Core Viewpoint - The article discusses the treatment of intangible assets in corporate income tax, including their definition, tax basis, and amortization methods according to Chinese tax law [1][3][4]. Summary by Sections Definition of Intangible Assets - Intangible assets are defined as non-monetary long-term assets held by enterprises for production, service provision, leasing, or management, including patents, trademarks, copyrights, land use rights, non-patent technology, and goodwill [1]. Tax Basis for Intangible Assets - The tax basis for intangible assets is determined by historical cost, which refers to the actual expenditure incurred when acquiring the asset. Changes in asset value during the holding period do not adjust the tax basis unless specified by the relevant authorities [2]. Amortization of Intangible Assets - Intangible assets can be amortized for tax purposes, with the amortization calculated using the straight-line method. The minimum amortization period for intangible assets is set at 10 years [3]. Special Case of Goodwill - For purchased goodwill, the expenditure is deductible only during the overall transfer or liquidation of the enterprise. Intangible assets acquired as investments can be amortized based on the specified useful life in relevant laws or contracts [4]. Non-Deductible Intangible Assets - Certain intangible assets are not eligible for amortization deductions as specified in the tax law [5]. R&D Expense Deductions - When calculating R&D expense deductions, amortization costs for intangible assets used in R&D activities, such as software and patents, are included. If an intangible asset is used for both R&D and non-R&D activities, the company must allocate the amortization costs based on actual usage [7].

Core Viewpoint - The company, Fangzheng Securities, has undergone an audit of its 2024 financial statements, revealing significant details about its financial asset investments and the associated risks and losses incurred during the year [1][2]. Financial Performance - As of the end of 2024, the total financial investments held by the company amounted to 113.664 billion yuan, representing a year-on-year decrease of 13.91% [2][4]. - The company reported a net investment income and fair value change of 1.939 billion yuan, an increase of 22.49% compared to the previous year [4][9]. - The fair value losses from trading financial assets amounted to 649 million yuan, while losses from derivative financial instruments totaled 1.475 billion yuan [2][4]. Financial Asset Details - The breakdown of financial investments includes trading financial assets, other debt investments, equity investments, and derivative financial assets, with a total initial cost of 111.738 billion yuan [5][6]. - Specific asset categories include perpetual bonds (10.782 billion yuan), government bonds (25.190 billion yuan), and corporate bonds (2.408 billion yuan) [5][6]. Investment Losses - The company experienced significant losses in its financial asset investments, with a notable decline in the valuation of non-listed equity investments, which decreased by 1.003 billion yuan due to market conditions [9][10]. - The losses from derivative financial instruments were primarily attributed to hedging strategies that resulted in losses when the market rose [10][12]. Risk Management - The company has established a warning and tracking disposal team to manage assets with overdue or default situations, ensuring regular reviews of asset disposal processes [12][16]. - As of the end of the reporting period, there were nine financial products with overdue or default situations, with an initial cost of 475 million yuan and cumulative impairment of 405 million yuan [12][16]. Regulatory Compliance - The audit conducted by Ernst & Young confirmed that the financial statements of Fangzheng Securities complied with the relevant accounting standards, ensuring that the financial asset investments were accurately reported [13][14].