A revaluation that increases or decreases an asset ‘s value can be accounted for with a journal entry that will debit or credit the asset account. An increase in the asset’s value should not be reported on the income statement; instead an equity account is credited and called a “RevaluationRead More →
Amortization refers to capitalizing the value of an intangible asset over time. … With a short expected duration, such as days or months, it is probably best and most efficient to expense the cost through the income statement and not count the item as an asset at all. Is accumulatedRead More →
Examples of intangible assets include goodwill, brand recognition, copyrights, patents, trademarks, trade names, and customer lists. You can divide intangible assets into two categories: intellectual property and goodwill. Intellectual property is something that you create with your mind, such as a design. How do you account for intangible assets? IntangibleRead More →
FRS 102 does not specify whether capitalised software costs should be presented as tangible or intangible assets. The decision is likely to be based on commercial reality – if software is primarily used to enable an item of IT hardware be used for its intended purpose, it is likely toRead More →
Tangible assets include land, natural resources, and buildings. Intangible assets include copyrights, patents, and goodwill. What is a long lived asset? Long-lived assets are defined as those assets that are expected to provide future economic benefits extending more than one year. These assets include: Tangible assets also known as fixedRead More →
Trademark is an intangible asset that protects others from using a business’s name, logo, or other branding items. It is a design, symbol, or logo used related to a particular product or a business. Why are trademarks amortized? Generally accepted accounting principles, or GAAP, require a business to amortize onlyRead More →