Intangible Assets & Goodwill

What R&D can be capitalized?

under US GAAP software, under IFRS development

All purchased intangibles must be?

Capitalized

What does a "separable" intangible mean

If a purchased intangible can be separately identified then it gets it's own asset class.

Where do purchased intagibles show up financially?

Balance Sheet

What is goodwill?

Goodwill is an asset that captures what is paid for an acquisition over fair market value of all net identifiable assets.

What intangible assets are amortized?

Intangibles with a definite life such as patents, copyrights, and customer lists

What intangible assets are not amortized?

Intangibles with an indefinite life such as brand names, and goodwill

What can purchased intangibles include?

Patents, trademarks, customers lists, goodwill

What is an impairment test?

When fair value of an asset falls below what is on financial statements it must be written down

Internally-developed intangibles are expensed or capitalized?

expensed