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Once again we find the three categories referred to

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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 Increase In value Revaluation Recognized Asset Amortization Useful life 5 years maximum 20 years maximum 40 years maximum Duration Decrease In value...
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