Educational Goodwill: Measuring the Intangible Assets at 2025

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Examples of intangible assets include the following: (1) Easements or land use rights (i.e., water rights, timber rights and mineral rights); (2) Patents, trademarks and copyrights; and (3) Computer software or websites that are purchased, licensed, or internally generated.
Intangible assets meeting the relevant recognition criteria are initially measured at cost, subsequently measured at cost or using the revaluation model, and amortised on a systematic basis over their useful lives (unless the asset has an indefinite useful life, in which case it is not amortised).
For example, if Company A acquires Company B for $500,000 and the fair market value of Company Bs net identifiable assets is $400,000, the goodwill would be calculated as $500,000 - $400,000 = $100,000. This $100,000 would then be recorded as an intangible asset (goodwill) on Company As balance sheet.
Intangible assets are measured initially at cost. After initial recognition, an entity usually measures an intangible asset at cost less accumulated amortisation. It may choose to measure the asset at fair value in rare cases when fair value can be determined by reference to an active market.
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