However, in 2014, this policy was partially rolled back with the FASB Accounting Standards Update No. 2014-02, "Intangibles—Goodwill and Other (Topic 350)."The FASB re-allowed private companies to elect to amortize goodwill on a straight-line basis over 10 years. However, the election is ...
Amortization measures the declining value of intangible assets, such as goodwill, trademarks, patents, and copyrights. This is calculated in a similar manner to the depreciation of tangible assets, like factories and equipment. When businesses amortize intangible assets over time, they are able to ...
While a company that acquires implied goodwill in a purchase combination will reflect that in the consolidated balance sheet and amortize the acquired goodwill through subsequent earnings, for tax purposes, the goodwill amount, generally, has not been deductible. This has led companies to look to...
Describe the Accounting for Intangible Assets. Give an example. Explain how to determine assets, liabilities, and stockholder equity. What does it mean to amortize intangible assets? How do you amortize them? What are the three major types of intangible assets, and ...
Explain the two methods to amortize the bond premium and discount. Give example journal entries for the two different amortization methods. Explain the process of establishing new accounts for fixed assets that will be depreciated like equipment. Why is accumulated depreciatio...
These all count as GAAP startup costs that you can record in your ledgers as startup expenses. Tax accounting requires you to amortize the costs over 180 months, without any initial deduction. If the company goes out of business, you get no write-off for any Section 197 costs that you ...
Goodwill and intangible assets-Public companies that reportgoodwillon their balance sheet, cannotamortizeit. Additionally, an annual impairment assessment is required before the end of a reporting period if there are any triggering events that may be indicating an impairment. A goodwill impairment los...
We amortize our identifiable intangible assets over their estimated lives or based on economic usage for certain commodities-related intangibles. Identifiable intangible assets are tested for impairment whenever events or changes in circumstances suggest that an asset's or asset group's carrying value ...
We amortize our identifiable intangible assets over their estimated lives or based on economic usage for certain commodities-related intangibles. Identifiable intangible assets are tested for impairment whenever events or changes in circumstances suggest that an asset's or asset group...