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Normally it's 5 years with equal amounts each year so it's similar to straight line depreciation except at the end of the 5 years the asset will not be shown on the balance sheet sheet at all.
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How to amortize Intangible assets?
Only to amortize intangible assets which are recognised as finite useful life. There are tow models, one is cost model, another is revaluation model. The way to charge intangible assets' amortisation is same as charging depreciation on physical non current assets. Carrying amount (net book value) is equal cost or re-valuated amount less any subsequent accumulated amortisation and any impairment losses. However, Revaluations should be regularly made so the carrying amount does not differ from the recoverable amount (it is the higher amount of net realisable value or value in use) at the end of the reporting period. On the other hand, If the intangible assets are recognised as definite useful life, there is no need to charge amortisation on the profit and loss. But annually impairment test should be carried out. A impairment loss or a revaluation surplus will be adjusted on both income statement and balance sheet. Hope it is helpful!
Types of intangible assets?
1 - Goodwill 2 - market related intangible assets 3 - Customer related intangible assets 4 - Contract related intangible assets 5 - Artistic related intangible assets 6 - Technology related intangible assets
What is the difference between tangible assets and intangible assets?
We can feel tangible asset,where as we cannot feel intangible asset
Are intangible assets included in current assets?
Intangible Assets are not included in current assets. They are usually listed under Other Assets.
Does depreciation is charged on intangible assets?
Depreciation is charged to tangible assets while amortization is used to charge intangible assets.
How to amortize Intangible assets?
Only to amortize intangible assets which are recognised as finite useful life. There are tow models, one is cost model, another is revaluation model. The way to charge intangible assets' amortisation is same as charging depreciation on physical non current assets. Carrying amount (net book value) is equal cost or re-valuated amount less any subsequent accumulated amortisation and any impairment losses. However, Revaluations should be regularly made so the carrying amount does not differ from the recoverable amount (it is the higher amount of net realisable value or value in use) at the end of the reporting period. On the other hand, If the intangible assets are recognised as definite useful life, there is no need to charge amortisation on the profit and loss. But annually impairment test should be carried out. A impairment loss or a revaluation surplus will be adjusted on both income statement and balance sheet. Hope it is helpful!
Types of intangible assets?
1 - Goodwill 2 - market related intangible assets 3 - Customer related intangible assets 4 - Contract related intangible assets 5 - Artistic related intangible assets 6 - Technology related intangible assets
What is the difference between fictitious assets and intangible Asset?
Fictitious assets-fictitious assets are deffered revenue expenditure whose benefit is derived over long period of time.Even accumalated losses are also fictitious assets as they are written off over a period of time.All fictitious assets are intangible but all intangible assets are not fictitious.ex goodwill.patents,trademarks,copyrights are intangible but not fictitious.following are the examples of fictitious assets are-preliminary expenses,discount on issue on debenture and shares,underwriting commission,miscellaneous expenditure,profit and loss(dr).
What is the difference between tangible assets and intangible assets?
We can feel tangible asset,where as we cannot feel intangible asset
What is the d ifference between Fictitious assets and Intangible Asset?
Intangible assets are basically fixed assets that have no physical status (e.g. goodwill, patentright,copyright etc) . The Intangible assets are written off after a specified period. Fictitious assets also have no physical existence but they only include the assets having the nature of deffered revenue expenditures (e.g. deffered advertisement expenses, discount on issue of shares or debentures).
Intangible assets are depreciated or not?
Intangible assets are subject to devaluation not depreciation.
Are intangible assets included in current assets?
Intangible Assets are not included in current assets. They are usually listed under Other Assets.
Banks Tangible and intangible resources?
Tangible assets for a bank include all assets after making deductions for goodwill and intangible resources. Intangible assets have no physical properties.
Does depreciation is charged on intangible assets?
Depreciation is charged to tangible assets while amortization is used to charge intangible assets.
Is intangible assets a debit or credit?
Intangible assets are also assets like any other assets so if all other assets have debit as a default balance then intangible assets also have debit as default balance. Like Goodwill etc.
What is the meaning of amortisation of translation reserve?
Amortization or amortisation is the process of decreasing or accounting for an amount over a period of time
Are patents intangible assets?
patents are intangible assets as these have not physical existence. patent is a right to use something which is not physical that's why it is an intangible asset.
