Intangible Assets - Goodwill & Other Flashcards
1
Q
When Depreciating or Amortizing do use Historical Cost or FV
A
Use Historical Cost (BV) to calculate depreciation & amortization expense
2
Q
R&D Expense for current projects and (Current & future projects)
A
If there is a future use then you R&D the depreciation expense over its useful life but if its for a current project then the whole thing is expensed as R&D
3
Q
Software Costs - Revenue Method
A
Book Value * Current Year Revenue/(Current year revenue + estimated future revenue)
4
Q
What method of depreciation to use when selling software costs
A
Greater of straight line or revenue method
