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How to amortize an indefinite life intangible asset?
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.
Should intangible assets always be amortized over their legal lives?
The literature makes a distinction between intangible assets with determinate useful lives (e.g., a patent) and those with indeterminate useful lives (e.g., goodwill or (sometimes) part of research and development).Some intangible economic assets do exist, but are not recognized by accountants at all because they cannot be measured, and a future benefit flowing from them is not reasonably certain. For example, the combined talent of the company's employees is such an asset. However, the benefit that results from that talent cannot be measured, and future benefits cannot be reasonably expected because these employees are free to quit at any time.Some intangible assets don't have legal lives, or even determinable useful lives.For example, there are differing opinions regarding the amortization of purchased goodwill (the difference between the price paid for a purchased business and the total fair market value of the business' net assets. Some countries' accounting rules do not permit the amortization of purchased goodwill: some do, but there is no such thing as the legal life of purchased goodwill, so if it is amortized, it is amortized ober an arbitrary number of years.Where an intangible asset has a determinable legaluseful life (for example, a patent), it is amortized over its legal life.
What is the difference between amortization and depreciation?
Amortization usually refers to spreading an intangible asset's cost over that asset's useful life. Depreciation, on the other hand, refers to prorating a tangible asset's cost over that asset's life.Depreciation Is Applicable only on Fixed & Tangible Assets Which Depends on useful life of that assets that may be expected accurately but Amortization applicable on Intangible Assets whose life is very critical to be measured.DEPRECIATION is calculated for tangible assets while AMORTIZATION is calculated for intangible assets.
Is goodwill ammortised?
Purchased goodwill should be amortized over its useful economic life.
How do you detemine an assets useful life?
According to useful life of an asset.
How to amortize an indefinite life intangible asset?
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.
What is an amortized account?
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.
Should intangible assets always be amortized over their legal lives?
The literature makes a distinction between intangible assets with determinate useful lives (e.g., a patent) and those with indeterminate useful lives (e.g., goodwill or (sometimes) part of research and development).Some intangible economic assets do exist, but are not recognized by accountants at all because they cannot be measured, and a future benefit flowing from them is not reasonably certain. For example, the combined talent of the company's employees is such an asset. However, the benefit that results from that talent cannot be measured, and future benefits cannot be reasonably expected because these employees are free to quit at any time.Some intangible assets don't have legal lives, or even determinable useful lives.For example, there are differing opinions regarding the amortization of purchased goodwill (the difference between the price paid for a purchased business and the total fair market value of the business' net assets. Some countries' accounting rules do not permit the amortization of purchased goodwill: some do, but there is no such thing as the legal life of purchased goodwill, so if it is amortized, it is amortized ober an arbitrary number of years.Where an intangible asset has a determinable legaluseful life (for example, a patent), it is amortized over its legal life.
What is the difference between amortization and depreciation?
Amortization usually refers to spreading an intangible asset's cost over that asset's useful life. Depreciation, on the other hand, refers to prorating a tangible asset's cost over that asset's life.Depreciation Is Applicable only on Fixed & Tangible Assets Which Depends on useful life of that assets that may be expected accurately but Amortization applicable on Intangible Assets whose life is very critical to be measured.DEPRECIATION is calculated for tangible assets while AMORTIZATION is calculated for intangible assets.
Is goodwill ammortised?
Purchased goodwill should be amortized over its useful economic life.
How do you detemine an assets useful life?
According to useful life of an asset.
What is a sentence for the word intangible?
Intangible means something that you cannot directly see, but know it is present. For instance, when a company produces a balance sheet, under its assets column sometimes labels some assets as "intangible assets." This could mean something like a certain catchphrase the company has, goodwill, etc. A sentence I would use for this would be: When confronted by a potential investor about the company's intangible assets, the CFO replied, "Don't you know our catchphrase?"
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!
What are maturity of fixed assets?
maturity of fixed assets means the completion of useful life of fixed assets.
Where can you find a list of all assets used by fuel haulers the assets useful life and the salvage value at the end of life?
up yours
What is an expired asset called?
An expired asset is commonly referred to as a "depreciated asset" or "fully amortized asset." It is an asset that has reached the end of its useful life or its expected economic benefit has been fully realized. In accounting terms, such assets may be removed from the balance sheet and recognized as having no remaining value.
Is life insurances an intangible product or not?
It's intangible
