F3: Assets and Related Topics

Question 1

Which type of intangible assets are not amortized?

Answer 1

Intangible assets with indefinite lives (and goodwill).

Question 2

When are intangible assets capitalized at cost?

Answer 2

When they are purchased or acquired from another enterprise or individual.

Question 3

When are intangible assets expensed?

Answer 3

Internally developed intangible assets are expensed. U.S. GAAP prohibits capitalization of R&D (with exceptions).

Question 4

Which costs should not be included in research and development?

Answer 4

Administrative costs.