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!
Answer:Under US GAAP as well as IFRS, intangible assets with an indefinite life (for example brand names) are not amortized, but instead, an annual impairment test is performed.
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
We can feel tangible asset,where as we cannot feel intangible asset
Intangible Assets are not included in current assets. They are usually listed under Other Assets.
Depreciation is charged to tangible assets while amortization is used to charge intangible assets.
Answer:Under US GAAP as well as IFRS, intangible assets with an indefinite life (for example brand names) are not amortized, but instead, an annual impairment test is performed.
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
We can feel tangible asset,where as we cannot feel intangible asset
Intangible assets are subject to devaluation not depreciation.
Intangible Assets are not included in current assets. They are usually listed under Other Assets.
Tangible assets for a bank include all assets after making deductions for goodwill and intangible resources. Intangible assets have no physical properties.
Depreciation is charged to tangible assets while amortization is used to charge intangible assets.
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.
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.
Intangible assets are assets like other assets just they cannot be seen by eye or feel by hand but as they are assets they are included in assets and part of liability.
Net tangible assets are calculated as the total assets of a company minus any intangible assets. Intangible assets are goodwill, patents and trademarks.
Intangible assets are those assets which do not have physical substance and nobody can see it physically.Examples:1 - goodwill2 - patent3 - copyrights etc