ch 12 intangible assets

ch 12 intangible assets - CH. 12. INTANGIBLE ASSETS I....

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INTANGIBLE ASSETS I. Nature - A lack of physical existence. - A high degree of uncertainty concerning future benefits. 1. Classification by following characteristics, - Identifiability. - Manner of acquisition. - Expected period of benefit. - Separability from the enterprise. 2. Valuation of intangibles. 1) If purchased and specifically identifiable. - Capitalized and amortized. - Must be recorded at cost, which includes all expenditures necessary to make the asset ready for its intended use. - The cost includes - Acquisition cost paid to the seller, - Other costs incurred in conjunction with securing the asset; e.g. costs of a successful legal suit to protect the patent and attorney's fees. 2) If internally developed or not specifically identifiable, - Must be expensed as incurred. 3. Amortization. - Amortize intangible assets by systematic ways over their legal, contractual, or useful lives whichever is shorter. - The most popular amortization method is the straight-line method.
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This note was uploaded on 02/23/2010 for the course ACCT 34131 taught by Professor Escobar during the Winter '10 term at CSU San Bernardino.

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ch 12 intangible assets - CH. 12. INTANGIBLE ASSETS I....

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