Unformatted text preview: ven in the notes.
Intangible assets, except R&D and issue costs, must be depreciated over their useful lives. If
goodwill is not charged directly to equity, it must be amortized over a period not exceeding 5
years unless a longer period can be justified. Bond issue costs and R&D costs must be
amortized over a period not exceeding 5 years.
Goodwill should be amortized over a maximum of 5 years, but this period may be extended
so long as it does not exceed the asset's useful life.
Formation expenses and research and development expenses must normally be written off
over a maximum of 5 years.
Goodwill must be amortized systematically over its useful life, with a maximum period of 10
years. If the period exceeds 5 years, this fact must be disclosed in the notes.
Patents and trademarks: no amortization rules are mentioned in the PGC but, in practice, they
will be the same as for Research and Development.
Lease premiums are recorded at cost and written off over the period in which they contribute
to the generation of income.
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