The impairment loss would be recognized using the following journal entry:Impairment loss $61.28 M Accumulated impairment loss $61.28 MUnder IFRS, the impairment, if any, is worked out by directly comparing the carrying amount with the higher of the fair value less cost to sell (which is ...
Instead, you should revise the asset’s useful life at the end of each financial year and seek for the indicators of impairment. When to derecognize intangible assets? You should derecognize the intangible asset either: When you dispose it of, or ...
Intangible Assets impairmenttest needed only when events indicate bookvalue may AmortizationMethod: Straight-line method. Othermethod can moreappropriate than S-Lmethod. Residualvalue: Usually zero. Intangible Assets 10 Amortization Intangibles(contd.) JournalEntry: Amortization Expense xxx Intangible Asset ...
Intangible assets and goodwill BusinessCombinations,GoodwillandIntangibles FASB141and142 Intangibleassetsgenerallyresultfromlegalorcontractualrightswhichdonothaveaphysicalsubstance.U.S.PatentHolder:P.ByeProcess:no-fade,brakefluidCopyrightArtist:B.JoelSong:UptownGirl Intangiblesmaybepurchasedfromothersordeveloped...
6、ign of possible product or process alternatives; construction of prototypes and operation of pilot plants.,Illustration 12-13,Accounting for R the impairment loss results in a new cost basis for the asset. IFRS and U.S. GAAP are similar in the accounting for the impairments of assets held...
(aprocessofcostallocation)overtheshorterofthelegalorusefullife,nottoexceed40years.IntangibleAssets9AmortizationofIntangibles Theimpairmenttestneededonlywheneventsindicatethatthebookvaluemaynotberecoverable. AmortizationMethod:Straight-linemethod. OthermethodcanbeappliedifitismoreappropriatethantheS-Lmethod. Residual...