Chapter 11 - 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 assets. | CHAPTER 11 INTANGIBLE ASSETS INTERMEDIATE ACCOUNTING Principles and Analysis 2nd Edition Warfield Weygandt Kieso 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 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 1. On the topic, “Challenges Facing Financial Accounting,” what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, and reject rates on goods purchases). Forward-looking Information Soft Assets (a company’s know-how, market dominance, marketing setup, well-trained employees, and brand image). Timeliness (no real time financial information) Marketing-related Customer-related Artistic-related Contract-related Technology-related Goodwill Intangible Asset Issues Types of Intangibles Impairments Research and Development Costs Presentation of Intangibles and Related Items Characteristics Valuation Amortization Property, plant, and equipment Limited-life intangibles Indefinite-life intangibles other than goodwill Goodwill Restoration of impairment loss Assets held for disposal Identifying R&D Accounting for R&D Other costs Conceptual questions Intangible assets R&D costs Intangible Assets Service Cost - Actuaries compute service cost as the present value of the new benefits earned by employees during the year. Future salary levels considered in calculation. Interest on Liability - Interest accrues each year on . | CHAPTER 11 INTANGIBLE ASSETS INTERMEDIATE ACCOUNTING Principles and Analysis 2nd Edition Warfield Weygandt Kieso 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 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 1. On the topic, “Challenges Facing Financial Accounting,” what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, and .
