TAX ACCOUNTING.pptx - INTANGIBLE ASSET ASPRILIAN PRAMURI...

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INTANGIBLE ASSET ASPRILIAN PRAMURI - 1215210061
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BACKGROUND Intangible asset are assets which have no physical existence. They are long-live non material right which may generate future revenues. The charateristic of intangible asset which the most prominent is the level of uncertainty value and benefit in the future. Intangible assets can be form of patent,copyrights,goodwill,franchise, etc
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TAX LAW OF INTANGIBLE ASSET PSAK 19
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VALUATION OF INTANGIBLE 1. Intangible are recorded at cost and are also reported at cost at the end of an accounting period. 2. Intangible with limited life are subject to amortization and possible impairment test. 3. Intangible with idenfinite life are only subject to impairment test at least annually.
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COST OF INTANGIBLES 1. Cost of intangible include acquisition costs plus any other expenditures necessary to make the intangible ready for the intended uses. 2. Essentially,the accounting treatment of valuation for intangible closely parallels that followed by tangible asset.
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PROBLEM IN ACCOUNTING FOR INTANGIBLE ASSETS 1. Some intangible assets are self-developed. Their cost cannot be measure objective and easily. 2. Some intangible asset such as goodwill do not have definite lives and they are not capable of being amortized over their idenfine life. 3. It is difficult to identity spesific revenues arising from the use of intangible.
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CLASSIFICATION OF INTANGIBLE ASSET AND ACCOUNTING TREATMENT Accounting treatment of intangible asset prescribe the accounting treatment for intangible assets that are not special regulation by IAS 19. Acquisition of intangible asset are recorded and recognized at original invoice amount and all cost attendant assets/rights (same as tangible asset)
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COMMON TYPES OF INTANGIBLE Patent are gives the holder the exclusive price to produce, use and sell a product or process without interference or infringment from other for a period of 17 years. The journal entry: Dr. Amortization expense Cr. Patents/ acc patent amortization 1. PATENT 1. PATENT
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COMMON TYPES OF INTANGIBLE The valuation of patent: Patent can be purchase from the inventory or holder or they can be generated internally.
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