FAR 8 - Intangibles

IFRS, revaluation model for use only if

Active market exists for the intangible asset

For a public business entity, the goodwill impairment test is required to be performed

Any time during the fiscal year, provided it is performed at the same time every year.

Under the revaluation model allowed under IFRS for the accounting for identifiable intangible assets:

Assets are periodically REVALUED and adjusted to their fair values and are amortized in between revaluation dates.

IFRS in order for intangible asset to be identifiable

Be either separable and arise from contractual or legal rights.

Under IFRS, what valuation methods are used for intangible assets?

Cost Model or the revaluation mode

equipment used in product development studies having potential alternative uses for future products. journal entry for depreciation expense?

Dr. Research and development Cr. Accumulated Depreciation.

impairing Good Will

Goodwill remains at its original amount until such time as it may be impaired, at which time it is either reduced or eliminated with the recognition of an impairment loss. Costs incurred to maintain goodwill are recognized as expense as incurred.

IFRS and GAAP - regarding internally generated goodwill

Internally generated goodwill cannot be recognized as an asset

Capitalize, for new patent

Legal costs associated with obtaining a patent on a new product.

Intangible asset with indefinite useful life and intended to renew to keep indefinite

Not amortized

intangible asset that is subject to the recoverability test?

Patent

Research and development expense if project is probable, and reasonable possible?

Research and development costs are recognized as expense in the period incurred, regardless of the likelihood that the effort will result in future benefits.

when to expense startup costs and organization costs

expensed as incurred