Intangibles Flashcards
1
Q
Unfavorable legal case
A
The amount paid in legal and the carrying value of the patent are EXPENSED in the period in which the decision is made
2
Q
Favorable legal case
A
If the decision is successful, the legal fees will be capitalized
3
Q
Impairment Loss
A
Carrying value less FMV (only if CV is greater than FMV). If CV is less than FMV, there is no impairment
4
Q
When to expense to R&D
A
the cost of developing a new idea for a product
5
Q
A
