Chapter 12 - Intangible assets. After completing this chapter you should be able to: Describe the characteristics of intangible assets, identify the costs to include in the initial valuation of intangible assets, explain the procedure for amortizing intangible assets, describe the types of intangible other contents. | C H A P T E R 12 INTANGIBLE ASSETS Intermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield Describe the characteristics of intangible assets. Identify the costs to include in the initial valuation of intangible assets. Explain the procedure for amortizing intangible assets. Describe the types of intangible assets. Explain the conceptual issues related to goodwill. Describe the accounting procedures for recording goodwill. Explain the accounting issues related to intangible asset impairments. Identify the conceptual issues related to research and development costs. Describe the accounting for research and development and similar costs. Indicate the presentation of intangible assets and related items. Learning Objectives Marketing-related Customer-related Artistic-related Contract-related Technology-related Goodwill Intangible Asset Issues Types of Intangibles Impairment of Intangibles Research and Development Costs Presentation of Intangibles and Related Items Characteristics Valuation Amortization Limited-life intangibles Reversal of impairment loss Indefinite-life intangibles other than goodwill Goodwill Identifying R&D Accounting for R&D Similar costs Conceptual questions Intangible assets R&D costs Intangible Assets Intangible Asset Issues LO 1 Describe the characteristics of intangible assets. Three Main Characteristics: Characteristics Identifiable, Lack physical existence. Not monetary assets. Normally classified as non-current asset. Intangible Asset Issues LO 2 Identify the costs to include in the initial valuation of intangible assets. Purchased Intangibles: Recorded at cost. Includes all costs necessary to make the intangible asset ready for its intended use. Typical costs include: Purchase price. Legal fees. Other incidental expenses. Valuation Intangible Asset Issues LO 2 Identify the costs to include in the initial valuation of intangible assets. Valuation Internally Created Intangibles: Companies expense all research phase costs and some . | C H A P T E R 12 INTANGIBLE ASSETS Intermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield Describe the characteristics of intangible assets. Identify the costs to include in the initial valuation of intangible assets. Explain the procedure for amortizing intangible assets. Describe the types of intangible assets. Explain the conceptual issues related to goodwill. Describe the accounting procedures for recording goodwill. Explain the accounting issues related to intangible asset impairments. Identify the conceptual issues related to research and development costs. Describe the accounting for research and development and similar costs. Indicate the presentation of intangible assets and related items. Learning Objectives Marketing-related Customer-related Artistic-related Contract-related Technology-related Goodwill Intangible Asset Issues Types of Intangibles Impairment of Intangibles Research and Development Costs Presentation of Intangibles and Related Items .
