中级财务会计英文ch07

Chapter7-1IntangibleAssetsChapter7IntermediateAccounting12thEditionKieso,Weygandt,andWarfieldPreparedbyCobyHarmon,UniversityofCalifornia,SantaBarbaraChapter7-21.Describethecharacteristicsofintangibleassets.2.Identifythecoststoincludeintheinitialvaluationofintangibleassets.3.Explaintheprocedureforamortizingintangibleassets.4.Describethetypesofintangibleassets.5.Explaintheconceptualissuesrelatedtogoodwill.6.Describetheaccountingproceduresforrecordinggoodwill.7.Explaintheaccountingissuesrelatedtointangible-assetimpairments.8.Identifytheconceptualissuesrelatedtoresearchanddevelopmentcosts.9.Describetheaccountingforresearchanddevelopmentandsimilarcosts.10.Indicatethepresentationofintangibleassetsandrelateditems.LearningObjectivesChapter7-3Intangibleassetsarethosenoncurrenteconomicresourcesthatareusedintheoperationsofthebusinessbuthavenophysicalexistence.PatentsCopyrightsFranchisesIntangibleAssetsChapter7-4Intangibleassetsarethosenoncurrenteconomicresourcesthatareusedintheoperationsofthebusinessbuthavenophysicalexistence.Trademarks®aregisteredtrademarkComputersoftwarecostsGoodwillIntangibleAssetsChapter7-5IntangibleAssetsLackphysicalsubstance.Economicbenefitslastbeyondthecurrentperiod.Usefullifeisoftendifficulttodetermine.Usuallyacquiredforoperationaluse.IntangibleAssetsChapter7-6MannerofacquisitionIdentifiabilityExchangeabilityPeriodofexpectedbenefitIntangibleAssetsClassificationAttributesChapter7-7Atacquisition:recordatcost.Duringuse:usethematchingprincipletoallocatecosttoexpense.Atdisposition:usetherevenuerecognitionprincipletorecordanygainorlossthatmightresult.IntangibleAssetsAccountingChapter7-8Recordatcurrentcashequivalentcost,includingpurchaseprice,transfer,andlegalfees.Iftheassetisacquiredthroughanonmonetaryexchange,costis-cashpaid,plus-thecurrentmarketvalueofthenoncashconsiderationgiven.IntangibleAssetsDeterminationofCostChapter7-9Iftheassetiscreatedinternally,thecostmayinclude-onlythecostsdirectlyassociatedwiththecreationoftheintangibleasset.CostsclassifiedasR&Dmustbeexpensedintheperiodincurred.-SFASNo.2IntangibleAssetsDeterminationofCostChapter7-10•Intangiblesarewrittenoffovertheirusefullives,wheretheassetshavedeterminableusefullives.•Wheretheintangibleshaveindefiniteusefullives,theyarenotamortized.•Acquiredintangiblesshouldnotbewrittenoffatacquisition.IntangibleAssetsAmortizationofCostChapter7-111.Legal,regulatory,orcontractualprovisionsthatplacealimitonthemaximumeconomiclife.2.Provisionsforrenewalorextensionofrightsorprivilegescoveredbyspecificintangibleassets.3.Effectsofobsolescence,customerdemand,competition,rateoftechnologicalchange,andothereconomicfactors.Factorstoconsiderwhenestimatingtheusefullifeofanintangibleasset:ContinuedIntangibleAssetsAmortizationofCostChapter7-124.Possibilitythattheeconomiclivesofintangiblesmayberelatedtolifeexpectanciesofcertaingroupsofemployees.5.Expectedactionsofcompetitors,regulatorybodies,andothers.Factorstoconsiderwhenestimatingtheusefullifeofanintangibleasset:IntangibleAssetsAmortizationofCostChapter7-13IntangibleAssetsWithaFiniteLifeAreAmortized.Thecalculationoftheamortizationofintangibleassetsfollowsthesameprinciplesasthedepreciationoftangibleassets.IntangibleAssetsAmortizationofCostChapter7-14Amortizationsystematicallyandrationallyallocatestheacquisitioncostofintangibleassetstoexpense.CostAllocationAcquisitionCostExpenseIntangibleAssetsAmortizationofCostChapter7-151.Selectamethodbasedonthepatternofbenefits,ifnotdeterminable,usethestraightlinemethod.2.Intangibleassetsdonothavearesidualvalue.IntangibleAssetsAmortizationofCostChapter7-16Theentrytorecordamortizationofanintangibleassetincludes:-adebittoAmortizationExpense.-acreditdirectlytotheintangibleassetaccount.IntangibleAssetsAmortizationofCostChapter7-17Acompanypurchasesapatentfor$85,000.Patent85,000Cash85,000Atyear-endthepatentisamortizedover10years(noexpectedresidualvalue).AmortizationExpense(orFactoryOverhead)8,500Patent(orAccumulatedAmortization:Patent)8,500IntangibleAssetsAmortizationofCostChapter7-18AnexclusiverightrecognizedbylawandregisteredwiththeUSPatentOffice.Theholderisallowedtouse,manufacture,sell,andcontroltheitem,process,oractivitywithoutinterferenceorinfringementbyothers.PatentsChapter7-19Costsofpurchasingpatentsarecapitalized.Coststoresearchanddeveloppatentsareexpensedasincurred.Patentsareamortizedovertheshorterofthelegallife(20years)ortheirusefullives.Legalfeesincurredtosuccessfullydefendpatentsarecapitalized.PatentsChapter7-20Batter-Up,Inc.hasdevelopedanewdevice.Patentregistrationcostsconsistedof$2,000inattorneyfeesand$1,000infederalregistrationfees.WhatisBatter-Up’samortizablecost?PatentsQuestionChapter7-21Batter-Up,Inc.hasdevelopedanewdevice.Patentregistrationcostsconsistedof$2,000inattorneyfeesand$1,000infederalregistrationfees.WhatisBatter-Up’samortizablecost?Batter-Up’scostforthenewpatentis$3,000.PatentsQuestionChapter7-22Batter-Uphasestimatedthatthedevicehasausefullifeof5years.Thelegallifeis20years.Attheendofyear1,whatisBatter-Up’samortizationexpense?PatentsQuestionChapt