Indefinite-life intangible assets (Trademarks) are
Not amortized but are tested for impairment annually
Litigation costs can only be capitalized as a per of the patent asset account if
They result in a successful patent defense so that the patent can be retained and continue to provide benefits
Under US GAAP, the purchase of a trademark is an intangible asset that would be recorded at
Cost with a debit to asset account
Legal cost associated with obtaining a patent on a new product is
Capitalized
In US GAAP, cost of start up activities, including organizational costs should be
Expensed as incurred
To calculate the recoverability test,
Measure the carrying value with the undiscounted future cash flow
*If the undiscounted future cash flow is GREATER than the CV, then no impairment loss is recognized
*IF the undiscounted future cash is LESS than the CV, the recognize the. Impairment loss
**This only make sure if there’s impairment, do not calculate
Under US GAAP, subsequent reversal of intangible asset impairment losses is
Prohibited unless the intangible asset is held for disposal
To calculate for the impairment loss
Calculate the difference between CV and the FV/PV
Copyrights purchased from company and design cost of trademark for internally developed games are considered
Intangible assets
Intangible assets should be amortized over
The lesser of the usefulness economic life or the legal life
Crypto assets are classified as
Intangible assets that have indefinite life and recognized at FV if criteria are met
For characteristics for Crypto are similar to indefinite-lived assets when
The asset does not provide the asset holder with enforceable rights or claims to underlying good
If any legal cost associated with unsuccessful defending a patent are
Expensed immediately
