Why are the intangibles patents and goodwill reviewed annually?
Why are the intangibles patents and goodwill reviewed annually?
Homework Answers
Answer-Patents and Goodwill are intangible assets As goodwill could not be amortized but it must be evaluated annually to determine impairment loss.
Patent is valid for limited number of years. So a business must amortize it. The process of amortization requires decreasing the value of the asset annually by an amount equal to the value of the asset divided by the number of years of the patent’s useful life.So every year a business records a decrease in value of patent value as a amortization expenses equal to decrease.
1. Explaining the accounting treatment for the impairment of Goodwill and Infinite-life Intangibles (other than goodwill).
1. Explaining the accounting treatment for the impairment of Goodwill and Infinite-life Intangibles (other than goodwill).
The amortization period for a patent is... Select one o a indefinite; patents should be reviewed...
The amortization period for a patent is... Select one o a indefinite; patents should be reviewed for impairment annually. b. 20 years or the expected useful life of the patent, whichever is shorter. O c. 20 years. d. 20 years or the expected useful life of the patent, whichever is longer
We have reviewed the topic of Goodwill on the Balance Sheet which is created when a...
We have reviewed the topic of Goodwill on the Balance Sheet which is created when a company acquires another and pays more than the market value of the acquired company's net assets. What I want you to address in this discussion board are the following: What type of "event" results in goodwill being recorded on a company's balance sheet? How is goodwill evaluated to determine whether this specific asset is impaired? If it is deemed to be impaired, what actions...
Which of the following is NOT true regarding intangibles? Multiple Choice Goodwill is amortized over its...
Which of the following is NOT true regarding intangibles? Multiple Choice Goodwill is amortized over its useful life An intangible with a definite life is amortized over the lessor of legal or useful life. Research and Development is expensed right away Intangibles that are developed internally and immaterial in amount may be expensed rather than amortized
Identifiable Intangibles and Goodwill, U.S. GAAP International Foods, a U.S. company, acquired two companies in 2013....
Identifiable Intangibles and Goodwill, U.S. GAAP International Foods, a U.S. company, acquired two companies in 2013. As a result, its consolidated financial statements include the following acquired intangibles: Intangible Asset Date of Acquisition Fair Value at Date of Acquisition Useful Life Customer relationships January 1, 2013 $3,200,000 10 years Favorable leaseholds June 30, 2013 4,800,000 12 years Brand names June 30, 2013 14,400,000 Indefinite Goodwill January 1, 2013 400,000,000 Indefinite Goodwill was assigned to the following reporting units: Asia $80,000,000...
What does goodwill represent? Under SFAS 142, we are required to test goodwill for impairment at...
What does goodwill represent? Under SFAS 142, we are required to test goodwill for impairment at least annually. How is this done? Is impairment of goodwill reversible under U.S. GAAP? How about under IFRS? (Refer to FASB Topic 350, "Intangibles-Goodwill and Other," and IAS36 "Impairment of Assets.")
Buerhle Company needs to determine if its indefinite-life intangibles other than goodwill have been impaired and...
Buerhle Company needs to determine if its indefinite-life intangibles other than goodwill have been impaired and should be reduced or written off on its balance sheet. The impairment test(s) to be used is (are): Recoverability Test Fair Value Test Yes Yes Yes No No Yes No No 2
Buerhle Company needs to determine if its indefinite-life intangibles other than goodwill have been impaired and...
Buerhle Company needs to determine if its indefinite-life intangibles other than goodwill have been impaired and should be reduced or written off on its balance sheet. The impairment test(s) to be used is (are) Recoverability Test Fair Value Test a. Yes Yes b. Yes No c No Yes d. No No
1.) Briefly describe each type of intangible asset: goodwill, patents, trademarks, franchises, copyrights, and research...
1.) Briefly describe each type of intangible asset: goodwill, patents, trademarks, franchises, copyrights, and research and development. 2.) Provide at least one defining characteristic of each. 3.) Explain the type of write-off to expense cost. Include a slide with references. (Meant to be a power point, but i can take care of that part, just need help with tje information!)
Q20 Goodwill is an intangible asset That has a definite life and its cost should be...
Q20 Goodwill is an intangible asset That has a definite life and its cost should be amortized over its useful life. That is recorded when the company has projected earnings in excess of earnings expected for an investment in a similar company in the same industry. That is reviewed for impairment when circumstances indicate that impairment may have occurred. That is reviewed annually to determine whether impairment has occurred.
The amortization period for a patent is... Select one o a indefinite; patents should be reviewed for impairment annually. b. 20 years or the expected useful life of the patent, whichever is shorter. O c. 20 years. d. 20 years or the expected useful life of the patent, whichever is longer
Buerhle Company needs to determine if its indefinite-life intangibles other than goodwill have been impaired and should be reduced or written off on its balance sheet. The impairment test(s) to be used is (are): Recoverability Test Fair Value Test Yes Yes Yes No No Yes No No 2
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