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How are intangible assets recognized?

An intangible asset can only be recognised if it is probable that the expected future economic benefits (eg revenue from the sale of products or services) that are attributable to the asset will flow to the entity and the cost of the asset can be measured reliably.

What are examples of intangible assets?

Examples of intangible assets include computer software, licences, trademarks, patents, films, copyrights and import quotas.

What kind of property are intangible assets?

What is intangible property? Intangible property is property that does not derive its value from physical attributes. Patents, software, trademarks and license are examples of intangible property. On the other hand, business furniture and equipment are examples of tangible personal property.

What happens when an intangible asset is fully amortized?

If an intangible asset has a finite useful life, then amortize it over that useful life. The amount to be amortized is its recorded cost, less any residual value. However, intangible assets are usually not considered to have any residual value, so the full amount of the asset is typically amortized.

What are three examples of intangible personal property?

Examples of intangible personal property are copyrights, patents, intellectual property, and investments. Assets that can be represented with social or reputational capital also qualify as intangible personal property.

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