The following diagram groups together the ways in

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Unformatted text preview: categories of intangibles are referred to: goodwill (GW), research and development costs (R&D) and other intangible assets (IA), which covers intangibles such as patents, licenses, brands and software, among others. The following diagram groups together the ways in which intangibles are recognized in accounting systems (see figure 2). 9 Figure 2 – Recognition of intangible assets Purchased - GW - R&D - IA Capitalized - GW - R&D - IA Non capitalized Recognition - GW - R&D - IA Internally generated This initial classification shows the differences between the recognition of purchased and internally generated intangible assets. There is also a distinction between goodwill, research and development costs and other intangible assets in the recognition criteria (see table 4). Table 4 - Recognition criteria Countries and Purchased Organizations Intangibles European Union Austria IA, R&D, GW Belgium IA, R&D, GW Denmark IA, R&D, GW Finland IA, R&D, GW France IA, R&D, GW Germany IA, R&D, GW Greece IA, R&D, GW Ireland IA, R&D, GW Italy IA, R&D, GW Luxembourg IA, R&D, GW Netherlands IA, R&D, GW Portugal Data not available Spain IA, R&D, GW Sweden IA, R&D, GW UK IA, R&D, GW Sub-Total 14 (IA, R&D, GW) Other countries Australia IA, R&D, GW Canada IA, R&D, GW Japan IA, R&D, GW Norway IA, R&D, GW Switzerland IA, R&D, GW USA IA, R&D, GW Sub-Total 6 (IA, R&D, GW) Supra-National Accounting...
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