Intangible assets are those assets which are amortized as compared to tangible assets which are depreciated.
Following are the intangible assets amortized: 1 - Patents 2 - Goodwill 3 - Preliminary Expenses etc.
Matching principle
Purchased goodwill should be amortized over its useful economic life.
It really depends on how much is the premium paid. Effectively if the premium paid is higher than the par value of the bonds issued, the annual interest expense would be relatively lower. Another perspective is that since that both the bonds and its premium uses effective interest method, considering all factors remain the same, the annual interest expense will remain unchanged. Premium of the bond should be captialized within the holders of the bonds and amortized over the years in which the manner best represents. Issuer of the bonds generally do not captialize the premium of the bond separately. You should also note that the bonds issued are not compound financial instruments or contain any embedded derivates.
Intangible assets are amortized on balance sheet same as tangible assets are depreciated.
Intangible assets are those assets which are amortized as compared to tangible assets which are depreciated.
Following are the intangible assets amortized: 1 - Patents 2 - Goodwill 3 - Preliminary Expenses etc.
An amortized loan is just a basic loan where the principal and interest are paid on a monthly basis. Usually, the majority of the interest is paid first, then the principal.
When bonds are sold for more than face value, the carrying value is equal to the face value plus any premium. The premium is the excess amount paid by the investors over the face value of the bond and is amortized over the life of the bond.
Amortized account is same like depreciation account which is used to reduce the value of intangible asset over it's useful life span through income statement.
YES
Matching principle
true
Purchased goodwill should be amortized over its useful economic life.
All types of promissory notes can be amortized over 120 months. We can write secured and non secured notes, 1st and 2nd mortgages. car loan etc.
It really depends on how much is the premium paid. Effectively if the premium paid is higher than the par value of the bonds issued, the annual interest expense would be relatively lower. Another perspective is that since that both the bonds and its premium uses effective interest method, considering all factors remain the same, the annual interest expense will remain unchanged. Premium of the bond should be captialized within the holders of the bonds and amortized over the years in which the manner best represents. Issuer of the bonds generally do not captialize the premium of the bond separately. You should also note that the bonds issued are not compound financial instruments or contain any embedded derivates.