ACC-1A Lecture Notes - Lecture 25: Deferral, Intangible Asset
Document Summary
Identifiable, non-monetary assets that don"t have a visible physical existence. Definition but is distinguishable from goodwill. Separable, i. e. is capable of being separated or divided from the entity and sold, Arises from contractual or other legal right, regardless of whether those rights etc. are transferrable from entity or not) Amortised if it has a finite life or otherwise impairment tests annually. Brand names, franchises, distributorships and other rights to sell someone else"s products in a certain geographical area. Deferred charges incorporation costs, financing costs and other long-term prepaid expenses. Development costs capitalised then expensed at the time they earn revenue. Technically feasible to complete the intangible asset so that it will be available for sale/use. Intangible asset can demonstrate it will generate probable feb. Adequate resources available to complete the development and to use/sell the intangible asset. Issues in determining whether there is an identifiable asset that will generate feb.
