Abstract
A company should measure an intangible asset at its fair value at the time of acquisition. The costs of internally developing, maintaining, or restoring intangible assets generally should be expensed as incurred (with some exceptions). Intangible assets other than goodwill may or may not be amortized depending on their useful lives to the entity: assets with finite lives are amortized; assets with indefinite lives are not. Goodwill is not amortized.
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Notes
- 1.
FASB 142.
- 2.
ASC 350.
- 3.
Julie Bennett (2004): Accounting for Goodwill, The Review: A Journal of Undergraduate Student Research: https://fisherpub.sjfc.edu/ur/vol7/iss1/7.
- 4.
IAS 36.
- 5.
Sven-Erik Johansson, Tomas Hjelström, Niclas Hellman (2016): Accounting for Goodwill under IFRS: A Critical Analysis, Journal of International Accounting Auditing and Taxation 27. https://doi.org/10.1016/j.intaccaudtax.2016.07.001.
- 6.
Kiley Arnold (2021): Software Capitalization Rules under US GAAP and GASB, https://leasequery.com/blog/software-capitalization-us-gaap-gasb/.
- 7.
Chris Gaetano (2022): FASAC suggests improving guidance for software costs, Accounting Today, https://www.accountingtoday.com/news/financial-accounting-standards-board-council-considers-improving-guidance-for-disclosures-and-accounting-of-software-costs.
References
ASC 350.
Chris Gaetano (2022): FASAC suggests improving guidance for software costs, Accounting Today, https://www.accountingtoday.com/news/financial-accounting-standards-board-council-considers-improving-guidance-for-disclosures-and-accounting-of-software-costs.
FASB 142.
IAS 36.
Julie Bennett (2004): Accounting for Goodwill, The Review: A Journal of Undergraduate Student Research: https://fisherpub.sjfc.edu/ur/vol7/iss1/7.
Kiley Arnold (2021): Software Capitalization Rules under US GAAP and GASB, https://leasequery.com/blog/software-capitalization-us-gaap-gasb/.
Sven-Erik Johansson, Tomas Hjelström and Niclas Hellman (2016): Accounting for Goodwill under IFRS: A Critical Analysis, Journal of International Accounting Auditing and Taxation 27https://doi.org/10.1016/j.intaccaudtax.2016.07.001.
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Lessambo, F.I. (2022). Long-Term Assets: Intangibles. In: Financial Statements. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-15663-2_8
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DOI: https://doi.org/10.1007/978-3-031-15663-2_8
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