Introduction to Intangible Assets Flashcards
What are the two types of intangible assets?
1) Identifiable- Copyrights, trademarks, patents, etc.
2) Unidentifiable- Goodwill
How are identifiable assets classed on the balance sheet?
Non-Current Asset
What are the two categories of identifiable assets?
1) Definite Life
2) Indefinite Life
What is the only method of amortization that is allowed for intangible assets
Straight-line method
What is the only time an indefinite life asset is adjusted?
Impairment (BV > FV) – Annual Test
How do you determine if an intangible asset is definite?
A finite legal life or economic factors indicate that the life is limited
How do you determine of an indefinite life?
There is no legal, regulatory
What costs are included in the intangible asset?
All External Costs
For disclosure purposes, what needs to be disclosed on the F/S for the definite lived assets?
Table format of the book value, accumulated depreciation, net carrying value
If a company has the intent to renew intangible assets indefinitely, what is it’s intangible classification?
Indefinite life
If you incur legal costs that were NOT successful, would you capitalize those costs.
No, because you wouldn’t have the patent. For legal costs that were successful, you can cap.
If a company incurs organization costs and start-up costs, how are those items treated (i.e. capitalized or expense)
Expense immediately
T/F: You can reverse an impairment to an intangible asset?
False
