level: Intangible Assets
Questions and Answers List
level questions: Intangible Assets
| Question | Answer |
|---|---|
| How are purchased intangible assets recorded? | At cost |
| GAAP vs IFRS: R&D Expense | Research: (Both Same) Research Expensed; Production, Alternative Use, and Successful Legal Capitalized, Development: (GAAP) Capitalize for Software ONLY after feasibility, (IFRS) Capitalize |
| How should Intangible Assets be amortized? | Finite = Amortize Infinite = Don't Amortize IN BOTH CASES CHECK FOR IMPAIRMENT |
| When does amortization of computer software begin and end? | It begins at release date and ends when sold |
| Franchisee Accounting: Initial and Continuing Fees | 1) Initial Fees: Capitalize and Amortize 2) Continuing Fees: Expense |
| Start-up Costs | Expense as incurred |
| Research and Development Expense DOES NOT INCLUDE (2) | 1. Items that have alternative future uses 2. Tasks undertaken on behalf of others |
| When does capitalization of costs start for software development? | After technological feasibility has been established |