Management and Organizational Studies 3360A/B Chapter Notes - Chapter 12: Intangible Asset, Serializability, Patent Office
Document Summary
Intangible assets: characteristics, lack physical existence, not financial instruments, normally classified as long-term asset, common types of intangibles, patents, copyrights, franchises or licenses, trademarks or trade names, goodwill, recognition and measurement, recorded at cost. Includes all costs necessary to make to the intangible asset ready for its intended use: consider payment terms, deferred- assets cost is pv of consideration that is exchanged at the transaction date. Recognize interest: acquired for shares- cost is generally measured at asset"s fv, exchanged for non-monetary assets- consider if the transaction has commercial substance or not. Internally developed intangibles: research and development costs are not in themselves intangible assets. Frequently results in something that a company patents or copyrights such as: new product, process, composition. Formula: research and development costs, companies spend considerable sums on research and development. Idea translated into some form of product or service to be further developed in order to be workable: examples.