intangible assets + amortization Comprehensive Test Prep Actual Questions An Correct Answers.
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Course
AMORTIZATION
Institution
AMORTIZATION
characteristics of intangible assets - correct answer - lack physical substance
- provide future economic benefit
when do we recognize intangible assets on the balance sheet? - correct answer - internally-generated intang...
when do we recognize intangible assets on the balance sheet? - correct answer -
internally-generated intangibles are OFF balance sheet
- purchased intangibles are ON balance sheet
goodwill = - correct answer purchase price - fair value of net assets
in which financial stmt does goodwill appear? will this balance ever change? - correct answer
balance sheet; at least annually. it is checked for downward revaluation (impairment) only.
new standard for goodwill impairment - correct answer SEC filer are required to
adopt the new standard for annual or any interim goodwill impairment tests in fiscal years beginning
after dec 15 2019
goodwill impairment: - correct answer compare fair value of reporting unit with
carrying value
how do you know if goodwill is impaired? - correct answer compare fair value to
bookvalue of net assets --> if fair value is lower, goodwill is impaired.
amortization - if the useful life is determinable... - correct answer - if the useful life
of the intangible asset is determinable, we amortize the cost over the lesser of the useful life or legal
life.
amortization - if the useful life is NOT determinable... - correct answer - we do not
amortize the cost, but we monitor it for impairment
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