ACCT 1A Lecture Notes - Lecture 4: Intangible Asset

• School: Irvine Valley College
• Department: Accounting
• Course: ACCT 1A
• Professor: Bradshaw

Document Summary

An intangible asset is an identifiable non-monetary asset without physical. It must meet the essential characteristic of an asset: i. e. control, future economic. It is separable, that is, is capable of being separated/divided from the entity and benefits, past event/transaction, as well as the identifiable criterion: sold, transferred, licensed, rented or exchanged, either individually or together with a related contract/asset/liability; or. Arises from a contractual or other legal right, regardless of whether those rights are transferrable or separable from the entity or from other rights or obligations. E. g. patents, licences, copyrights, franchises, trademarks, etc. The definition excludes monetary items (i. e. financial instruments) e. g. The definition excludes monetary items (i. e. financial instruments) e. g. shares are not intangible assets. An intangible asset shall be measured initially at cost. Elements of cost include: deducting trade discounts and rebates); Purchase price (including import duties and non-refundable purchase taxes after. Any directly attributable costs of preparing the asset for its intended use;