intabgible assets Flashcards
What is the definition of an Intangible asset?
An asset that you can’t physically touch for example brand or goodwill
What is goodwill?
future economic benefits arising from assets
that are not capable of being individually
identified and separately recognized
3 criteria for identifying intangible assets?
The business will benefit from it.
Cost can be measured reliably.
Transparency using reasonable and supportive assumptions.
4 Ways to measure intangible assets?
Separate acquisition.
Business combination.
Given by government grant.
Exchange of assets.
When would an intangible asset be considered an expense?
During R&D
how many criteria must be completed for an intangible asset to be considered developed?
6
What is the cost model?
When an intangible is valued at how much it costs to research less any impairments
What is a revaluation model?
