If the estimated useful life or residual value changes the change in

If the estimated useful life or residual value

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If the estimated useful life or residual value changes, the change in amortization estimates is calculated similarly to how it is discussed in Chapter 11 Residual value is usually equal to zero unless the economic life of the asset is greater than its useful life
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Amortization of Intangible Assets What is the journal entry to record the amortization of an intangible asset? Amortization Expense xx Acc. Amortization or Intangible Asset xx
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Today’s Topic Overview of Intangible Assets Types of Intangible Assets Impairments of Intangible Assets Research and Development costs
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Types of Intangible Assets 6 types of intangible assets 1. Marketing-related 2. Customer-related 3. Artistic-related 4. Contract-related 5. Technology-related 6. Goodwill
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Marketing-Related Intangibles Marketing-related intangible assets are used in the marketing or promotion of products or services Capitalize purchase price. What is an example of marketing-related intangible assets? Trademark, Trade Name, and internet domain names Word, phrase, or symbol that distinguishes or identifies a particular company or product Do you typically amortize a trademark? No, typically have an indefinite life
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Marketing-Related Intangibles Marketing-related intangible assets By filing for trademark registration, the trademark owner obtains a right to ownership and the right to prevent others from using a similar mark without her permission In Singapore, the registered trademark can last indefinitely, subject to renewal every 10 years A registered trade mark is a form of property; it can be licensed or assigned Capitalize registration / acquisition costs No amortization, but check for impairment
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Customer-Related Intangibles Customer-related intangibles typically relate to interactions with customers. Examples include Customer lists Contractual customer relationships Non-contractual customer relationships Capitalize acquisition costs Amortized to expense over useful life.
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Artistic-Related Intangibles Artistic-related intangibles typically ownership rights to plays, literary works, musical works, pictures, photographs, and video and audiovisual material What typically protects artistic-related intangibles? Copyrights Copyright is granted for the life of the creator plus 50 years (70 years in the U.S) Capitalize acquisition costs Amortized to expense over useful life.
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Contract-Related Intangibles Contract-related intangibles typically represent the value of the rights that arise from contractual arrangements What are some examples of contract-related intangibles? Franchises Contractual arrangement under which the franchisor grants the franchisee the right to sell certain products or services, to use certain trademarks, or to perform certain functions Licensing agreements Permits a business to use public property in performing its service.
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  • Winter '18
  • jane smith

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