MGAB01H3 Lecture : Intangible Capital Assets
16
MGAB01H3 Full Course Notes
Verified Note
16 documents
Document Summary
These include rights, privileges, and competitive advantages that result from the ownership of these long-lived assets. Intangible assets are recorded at cost, and this cost is amortized over the useful life of the intangible asset in a rational and systematic manner. Instead of crediting an accumulated amortization account, the intangible asset account is credited directly. These assets are usually amortized on a straight-line basis. If there is a permanent impairment in value, the difference must be recorded as an impairment loss. If the market value increases, the net book value is not adjusted. When the asset has no legally determined life, it is not amortized. It is an exclusive right issued by the canadian intellectual property office of industry. Canada for a period of 20 years from the date of the application. The initial cost of a patent is the price paid to acquire it.
