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Unformatted text preview: eration paid for the acquisition of an enterprise exceeds the value of the
enterprise's net assets at the acquisition date, the excess may be capitalized. If capitalized,
this goodwill must be amortized over a four-year period beginning in the year after
Intangible assets are amortized over their estimated useful lives using the straight-line
Goodwill is expensed in the year incurred or capitalized and amortized over a five-year
The cost of acquiring or creating intangible assets is subject to systematic (straight-line)
amortization over a five-year period or longer (e.g. patents) as long as they are of material
value for future operations.
Research and development costs can be either expensed or amortized over a five-year period.
All intangible assets, including goodwill, should be amortized over their estimated useful
lives. There is no maximum amortization period. 26 Italy Luxembourg Netherlands Portugal Spain Sweden UK Since the maximum amortization rate is 20 perc...
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- Fall '13
- The Land