BU387 Chapter Notes - Chapter 12: Retained Earnings, Intangible Asset, Impaired Asset
Document Summary
Intangible assets ideniiable non-monetary assets that lack physical substance. The recogniion criteria for intangible assets are idenical to those for pp&e assets and both are measured at cost at acquisiion. Each type of asset can be recognized only when it is probably that the enity will receive the expected future economic beneit, and the asset"s cost can be reliably measured. Two models have been put forward for measuring intangible assets ater iniial recogniion: a) cost model (cm) Most widely used, only method allowed under pe gaap b) revaluaion model (rm) Can only be applied to intangible assets that have a fair value in an acive market: cost model (cm) Carried at cost less accumulated amorizaion and any accumulated impairment loss. Diference between asset"s carrying amount and proceeds on disposal is gain or loss reported in net income: revaluaion model (rm) Carried at fv at the date of the revaluaion less any subsequent accumulated amorizaion and any subsequent impairment losses.
