Unformatted text preview: value. USA Recorded at acquisition cost.
Goodwill is recorded as an
asset only if it is purchased
(goodwill is the excess of the
purchase price over the fair
value of the net assets that are
purchased). According to ARR 9, an internally generated intangible may
be recognized as an asset when the following criteria are
- The intangible item can be separately identified;
- It will generate future economic benefits over several
- Its cost can be measured reliably;
- Adequate resources exist, or are reasonably certain to be
available to complete the item and to market or use it.
Research costs cannot be capitalized.
Development costs are considered by ARR 9 as intangible
assets. Recognition criteria are the same as for other
If a separate intangible asset (e.g. patent) can be identified,
and if it has a determinable useful life, it can be capitalized as
a separate intangible asset.
Development costs are expensed as incurred under US
GAAP. However, separate rules apply to development costs
for computer software that...
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