Introduction to Intangible Assets

Question 1

Are all intangibles required to be evaluated for impairment?

Answer 1

-Yes

Question 2

What are the only costs capitalized related to internally developed intangibles?

Answer 2

-Registration fees and legal costs to outsiders

Question 3

What’s the impairment test for Definite Life Intangibles?

Answer 3

Sames as assets in use:
BV > R
Loss= BV - FV

Question 4

What’s the impairment test for Indefinite Life Intangibles other than Goodwill?

Answer 4

Same as assets held for sale:
BV > FV
Loss= BV - FV

Question 5

Can impairment losses be reversed for intangibles?

Answer 5

-No