Accounting for the cost of intangibles is discussed in fasB statement No. 142 as follows 2. Purchased Unidentifiable intangibles. A company capitalizes the cost of a purchased unidentifiable intangible asset. The principal example of an unidentifiable intangible is goodwill. continued
2. Purchased Unidentifiable Intangibles. A company capitalizes the cost of a purchased unidentifiable intangible asset. The principal example of an unidentifiable intangible is goodwill. Accounting for the cost of intangibles is discussed in FASB Statement No. 142 as follows: Intermediate Accounting 9 Intangibles continued
Accounting for the cost of intangibles is discussed in fasb statement No. 142 as follows 3. Internally Developed Identifiable intangibles. When a company internally develops an intangible assets, it can capitalize only certain costs. The expensing of research and development costs represents an exception to the general rule of capitalizing of internally developed identifiable intangibles continued
3. Internally Developed Identifiable Intangibles. When a company internally develops an intangible assets, it can capitalize only certain costs. The expensing of research and development costs represents an exception to the general rule of capitalizing of internally developed identifiable intangibles. Accounting for the cost of intangibles is discussed in FASB Statement No. 142 as follows: Intermediate Accounting 9 Intangibles continued
Accounting for the cost of intangibles is discussed in fasb statement No. 142 as follows 4. Internally Developed unidentifiable Intangibles. a company expenses the costs of internally developed unidentifiable intangibles as incurred even thought they may be expected to have benefits extending beyond the current erlo d. 学已态国
4. Internally Developed Unidentifiable Intangibles. A company expenses the costs of internally developed unidentifiable intangibles as incurred even thought they may be expected to have benefits extending beyond the current period. Accounting for the cost of intangibles is discussed in FASB Statement No. 142 as follows: Intermediate Accounting 9 Intangibles
Amortization of Intangibles Intangible Assets With a finite life Are amortized The calculation of the amortization of intangible assets follows the same principles as the depreciation of tangible assets
Intangible Assets With a Finite Life Are Amortized. The calculation of the amortization of intangible assets follows the same principles as the depreciation of tangible assets. Amortization of Intangibles Intermediate Accounting 9 Intangibles
Amortization of Intangibles A company purchases a patent for $85,000 Patent 85.000 Cash 85.000 At year-end the patent is amortized over 10 years(no expected residual value) Amortization Expense(or Factory Overhead 8500 Accumulated amort- zation Patent 8500
Amortization of Intangibles A company purchases a patent for $85,000. Patent 85,000 Cash 85,000 At year-end the patent is amortized over 10 years (no expected residual value). Amortization Expense (or Factory Overhead) 8,500 Accumulated Amortization: Patent 8,500 Intermediate Accounting 9 Intangibles