Goodwill and Intangible Assets

Question 1

Criteria for an Intangible Asset

Answer 1

Identifiable Asset
Entity has control
Future economic benefit

Question 2

Criteria for an Identifiable Asset

Answer 2

Separable
or
Arising from a legal right

Question 3

Criteria for recognition of an Intangible asset

Answer 3

The future economic benefit is probable

Can be reliably measured

Question 4

What is Goodwill

Answer 4

When more than the FMV of the assets are paid to acquire an asset. No goodwill on internally generated assets

Question 5

Criteria to recognize an internally generated intangible asset

Answer 5

1. Technological feasibly
2. There are financial, technical, and other resources available to complete the project
3. Ability to use/sell the asset
4. There is a future economic benefit
5. Intent to complete the project
6. Can reliably measure costs

Question 6

What can you capitalize of internally generated intangible asset criteria are met

Answer 6

Only development costs,

Research costs are always expensed