Intangible Assets
Intangible Assets
Intangible Assets
PAS 38, paragraph 97, states that intangible assets with limited
or finite life are amortized over their useful life.
Paragraph 107 and 108 - intangible assets with indefinite life are
not amortized but are tested for impairment at least annually and
whenever there is an indication that intangible asset may be
impaired.
Sample Problem
Dream Company reported the following data at year-end:
Franchise 1,000,000
Computer software 1,500,000
Deferred charges 100,000
Patent 2,500,000
Customer list purchased 500,000
Copyright 700,000
Trademark 900,000
Goodwill 4,000,000
Research and development cost 2,000,000
Bond Sinking fund 1,300,000