M6 - Intangible Assets Flashcards
1
Q
Accounting for franchise fees
A
Reported in IS in the period incurred
2
Q
Capitalizing patent right legal fees
A
Only if defense is successful
3
Q
Useful life that should be used to amortize intangible asset
A
Lesser of the useful economic life or the legal life
4
Q
How to amortize indefinite intangible assets
A
No amortization expense
5
Q
What kinds of intangible assets are tested for impairment and recoverability?
A
With finite lives such as a patent
