COMM 353 Lecture Notes - Lecture 9: Intangible Asset, Identifiability, Financial Statement
Document Summary
Intangibles and natural resources: intangible assets initial recognition and measurement. Definition: an intangible asset is an identifiable non-monetary asset without physical substance. Have tangible components, but the tangible portion is incidental to the value of the item. Some assets that lack physical substance are financial in nature and are not considered intangible assets in accounting. A/r and bond investments lack physical substance, but they are laims on cash flows. An asset is identifiable if it either. Arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations. The difference between the purchase cost of a business and the fair value of identifiable assets, net of liabilities. A residual amount left over after values have been allocated to all other balance sheet items (including intangible assets), good will i not specifically identifiable. It i not classified as an intangible asset.
