{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ch12 - CHAPTER INTANGIBLE 12 12 ASSETS Prof.VolkanMuslu...

Info icon This preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 12-1 C H A P T E R C H A P T E R 12 12 I N T A N G I B L E A S S E T S I N T A N G I B L E A S S E T S Intermediate Accounting I Intermediate Accounting I Prof. Volkan Muslu Prof. Volkan Muslu
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 12-2 Intangible Asset Issues Intangible Asset Issues LO 1 Describethecharacteristics of intangibleassets. Describethecharacteristics of intangibleassets. Characteristics (1) They lack physical existence. (2) They arenot financial instruments. Normally classified as long-termasset. Common types: Patents Copyrights Franchises or licenses Trademarks or tradenames Goodwill
Image of page 2
Chapter 12-3 Intangible Asset Issues Intangible Asset Issues LO 2 Identify thecosts to includein theinitial valuation of intangibleassets. Purchased Intangibles : Recorded at cost. Includes all costs necessary to maketheintangibleasset ready for its intended use. Valuation Internally Created Intangibles: Generally expensed. Only capitalizedirect costs incurred in developing theintangible, such as legal costs.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 12-4 Intangible Asset Issues Intangible Asset Issues LO 3 Explain theprocedurefor amortizing intangibleassets. Explain theprocedurefor amortizing intangibleassets. Amortization Limited-Life Intangibles: Amortizeto expense. Credit asset account or accumulated amortization. Impairment: Recoverability and then fair valuetest Indefinite-Life Intangibles: No foreseeablelimit on timetheasset is expected to providecash flows. No amortization. Impairment: Fair valuetest only
Image of page 4
Chapter 12-5 Types of Intangibles Types of Intangibles LO 4 Describethetypes of intangibleassets. LO 4 Describethetypes of intangibleassets. Six Major Categories: (1) Marketing-related. (2) Customer-related. (3) Artistic-related. (4) Contract-related. (5) Technology-related. (6) Goodwill.
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 12-6 Types of Intangibles Types of Intangibles 1) Marketing-Related IntangibleAssets Examples are: trademarks or tradenames, newspaper mastheads, Internet domain names, and noncompetition agreements. Trademark or tradename has legal protection for indefinitenumber of 10 year renewal periods. Capitalizeacquisition costs. No amortization.
Image of page 6
Chapter 12-7 Types of Intangibles Types of Intangibles 2) Customer-Related IntangibleAssets Examples are: customer lists, order or production backlogs, and both contractual and noncontractual customer relationships. Capitalizeacquisition costs. Amortized to expenseover useful life.
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 12-8 Types of Intangibles Types of Intangibles Assumethat Green Market Inc. acquires thecustomer list of a large newspaper for $6,000,000 on January 1, 2010. Green Market expects to benefit fromtheinformation evenly over a three-year period. Record the purchaseof thecustomer list and theamortization of thecustomer list at theend of each year. Customer List 6,000,000 Jan. 1 Cash 6,000,000 Customer list expense 2,000,000 Dec. 31 2010 2011 2012 Customer list 2,000,000
Image of page 8
Chapter 12-9 Types of Intangibles Types of Intangibles 3) Artistic-Related IntangibleAssets Examples are: plays, literary works, musical works, pictures, photographs, and video and audiovisual material.
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern