Intangibles_Amortization Flashcards
1
Q
intangibles except for goodwill and ones with indefinite lives
A
capitalized; tested for impairment regularly
2
Q
intangibles with definite lives
A
amortized
3
Q
patent
A
amortized over shorter of estimated life or remaining legal life
4
Q
straight line
A
should be used unless a company demonstrates that another systematic method is more appropriate
5
Q
worthlessness
A
if an intangible becomes worthless during the year, EXPENSE
6
Q
impairment
A
expense
7
Q
change in useful life
A
remaining net book value is amortized over new remaining life
8
Q
sale of intangibles
A
gain or loss on the sale of an intangible asset = difference between the carrying value of the intangible asset at the date of sale and its selling price
9
Q
income tax effect
A
intnagible amortized over 15 years for tax purposes
