Professional Documents
Culture Documents
Intangible Assets
Noncurrent
Noncurrent assets
assets
without
without physical
physical
substance.
substance.
Useful
Useful life
life is
is
often
often difficult
difficult
to
to determine.
determine.
Intangible
Assets
Often
Often provide
provide
exclusive
exclusive rights
rights
or
or privileges.
privileges.
Usually
Usually acquired
acquired
for
for operational
operational
use.
use.
Indefinite
Indefinite Life
Life
Amortize
Amortize over
over shorter
shorter of
of
economic
economic life
life or
or legal
legal life,
life,
subject
subject to
to rules
rules specified
specified
by
by GAAP.
GAAP.
Use
Use straight-line
straight-line method.
method.
Not
Not amortized.
amortized.
Tested
Tested at
at least
least annually
annually for
for
possible
possible impairment,
impairment, and
and
book
book value
value is
is reduced
reduced to
to
fair
fair value
value ifif impaired.
impaired.
Only purchased
goodwill is an
intangible asset.
What
What amount
amount of
of goodwill
goodwill should
should be
be
recorded
recorded on
on Arpec
Arpec Company
Company books?
books?
a.
a.
b.
b.
c.
c.
d.
d.
$200,000
$200,000
$400,000
$400,000
$600,000
$600,000
$800,000
$800,000
Joaqun Urbarri
Copyrights
Copyrights
AA symbol,
symbol, design,
design, or
or
logo
logo associated
associated with
with
aa business.
business.
The
The exclusive
exclusive right
right to
to
publish,
publish, use,
use, and
and sell
sell aa
literary,
literary, musical,
musical, or
or
artistic
artistic work.
work.
An
An exclusive
exclusive legal
legal right
right
to
to use
use aa name,
name, image
image
or
or slogan.
slogan.
Purchased
Purchased trademarks
trademarks
are
are recorded
recorded at
at cost.
cost.
Legal
Legal life
life is
is life
life of
of
creator
creator plus
plus 70
70 years.
years.
Amortize
Amortize cost
cost over
over the
the
period
period benefited.
benefited.
Joaqun Urbarri
Joaqun Urbarri
Licenses
Licenses and
and Operating
Operating
Rights
Rights
Limited
Limited permissions
permissions to
to
use
use aa product
product or
or service
service
according
according to
to specific
specific
terms
terms and
and conditions.
conditions.
You
You may
may be
be using
using
computer
computer software
software that
that
is
is made
made available
available to
to you
you
through
through aa campus
campus
licensing
licensing agreement.
agreement.
Joaqun Urbarri
International PerspectiveIFRS
Measurement Basis for Property, Plant
and Equipment