F3 - M7 - Intangibles Flashcards
________ are long-lived legal rights and competitive advantages developed or acquired by a business enterprise, including patents, copyrights, trademarks, and goodwill.
Intangible assets
Purchased identifiable intangible assets should be recorded at _____ plus __________ necessary to purchase.
cost; additional expenditures
Under U.S. GAAP, ___________related to internally developed intangible assets must be ______.
research and development costs; expensed
Under IFRS, research costs must be ______, but development costs may be ________ if certain criteria are met.
expensed; capitalized
Identifiable intangibles with finite lives are amortized over the _____ of the estimated economic life and the legal life.
shorter of the estimated economic life and the legal life.
Goodwill and identifiable intangibles with indefinite lives are ______ and are subject to _______ testing.
not amortized; impairment testing
Under U.S. GAAP, intangible assets are reported at ________less ______ (finite life intangibles only) and ________.
cost less amortization; impairment
Under IFRS, intangible assets may be reported using the ______ (same as U.S. GAAP) or the ______ model.
cost model or Revaluation model
Revalued intangible assets are reported at ______ on the revaluation date less _____________ and _______.
fair value; subsequent amortization; impairment
_________ are reported on the income statement and revaluation gains are generally reported in other comprehensive income.
Revaluation losses
Revaluation losses are reported on the _________ and revaluation gains are generally reported in __________________.
income statement; other comprehensive income
The present value of the _______ or _______ by a franchisee (the initial franchise fees) is recorded as an _______ on the balance sheet and amortized over the ___________ of the franchise.
amount paid; be paid; intangible asset; expected period of benefit
In financial accounting, start-up costs are ______ as incurred
expensed
U.S. GAAP requires research and development (R&D) expenditures to be ________ as incurred. Assets with alternative future uses can be ______________.
expensed; expensed over time
Under U.S. GAAP, when parties contract for R&D services to be performed by another firm, the buyer of R&D will _________ amounts as services are obtained from the provider.
expense
when parties contract for R&D services to be performed by another firm, the seller will expense costs as ________
cost of goods sold.
For R&D, Under IFRS, _______ are expensed and __________ may be capitalized if certain criteria are met.
research costs; development costs
Under U.S. GAAP, if computer software is to be sold, leased, or licensed, the time line is the key. _____ the development costs from concept to ____________
Expense; technological feasibility.
________ the costs from technological feasibility through the start of selling activity.
Capitalize
For Computer software development - Resume _________ further development costs after selling has started.
expensing
Costs capitalized between technological feasibility and the start of selling are amortized using the greater of ________________
two methods: percentage of revenue or straight-line.
Under U.S. GAAP, if computer software is to be used internally, the development costs need to be _________________
amortized on the straight-line basis.
_____ does not provide separate guidance regarding computer software development costs.
IFRS
Under IFRS, Research costs must be expensed and ____________ may be capitalized if certain criteria are met.
Research costs; development costs
