This preview shows page 1. Sign up to view the full content.
Unformatted text preview: pean Union Research and development expenditure may be treated in different ways.
Concessions, patents, licenses, trademarks and similar rights and assets may be capitalized if
they either were acquired for valuable consideration and are distinguishable from goodwill,
or were created by the undertaking itself.
Goodwill may be capitalized to the extent that it was acquired for valuable consideration. 25 APPENDIX 3: SUMMARY OF TREATMENTS OF CHANGES IN VALUE OF
Countries and Organizations
Purchased goodwill should be amortized over its estimated useful life.
Intangible assets are amortized over their estimated useful lives using the straight-line
Belgium Denmark Finland France Germany Greece Ireland Intangible assets with limited useful lives are subject to amortization (the method and rate are
established by the firm's board of directors). Complementary, or exceptional, amortization is
required if, as a result of changes in economic or technological circumstances, the book value
of an intangible asset exceeds its usage value.
Intangible assets with unlimited useful lives are subject to reduction in book value only if
permanent loss in value has occurred.
All intangible assets are a...
View Full Document
- Fall '13
- The Land