COMM321 Chapter Notes - Chapter 12: Intangible Asset, Book Value, Impaired Asset
16 Apr 2017
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Intangible assets must meet all of the following characteristics: Chapter 12: they are identifiable, having at least one of the following characteristics: Can be separated from the entity and sold, rented, exchanged, transferred or licensed: they lack physical substance, and, they are non-monetary. Identifiable intangibles with similar characteristics should be grouped and reported together. Acquired as part of a business combination, or. Cost includes all expenditures that are necessary to get the intangible asset ready for its intended use (e. g. , purchase price, legal fees) If there are delayed payment terms, recognize financing expense (interest) If acquired for shares, cost is generally measured at asset"s fair value (or value of shares if value of asset cannot be determined) If exchanged for non-monetary assets, the fair value of the item given up or the fair value of the intangible received is used to determine cost. For a basket purchase of intangibles, the cost is allocated based on fair values.
