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Unformatted text preview: he definitions alone would not
have sufficed. There is still one crucial matter to consider: the accounting treatment of
changes in the value of intangibles. Strictly speaking, this takes us outside the scope of the
approach used to define intangible assets, but we believe it is important not to dissociate the
issues of definition and recording changes in value.
5. TREATMENT OF CHANGES IN INTANGIBLE ASSETS VALUE
We will only take into consideration here intangibles that have already been capitalized. Once
again we find the three categories referred to above: research and development costs,
goodwill and other intangible assets. The first three treatments (amortization, no amortization
and impairment) are for cases in which the asset value decreases. If it increases in value, some
countries allow revaluation while others do not (fourth treatment) (see figure 3 below). 13 Figure 3 – Treatments of changes in value
In value Revaluation Recognized
Amortization Useful life
5 years maximum
20 years maximum
40 years maximum Duration Decrease
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This note was uploaded on 05/02/2013 for the course ECONOMIC economics taught by Professor Economics during the Fall '13 term at Elmont Memorial High School.
- Fall '13
- The Land