Popular Courses
COMM 217
Concordia University
ACCT 2301
The University of Texas at Dallas
Intro to Financial Accounting
General Course
COMM 293
University of British Columbia
Intro to Financial Accounting
University Study Guides
MGCR 211
McGill University
ACCT 1220
University of Guelph
Intro to Financial Accounting
University Study Guides
ACCT 217
University of Calgary
ADMS 2500
York University
COMMERCE 1AA3
McMaster University
ACCTG 211
University of Alberta
ACC 100
Toronto Metropolitan University
COMM 111
Queen's University
BU127
Wilfrid Laurier University
RSM219H1
University of Toronto
COMM 1101
Dalhousie University
AFM 101
University of Waterloo
BUS 251
Simon Fraser University
AFA 100
Toronto Metropolitan University
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Intangible Assets
Intangible assets do not have physical substance, in contrast to tangible assets like buildings and equipment. Intangible assets are often made up of intellectual property and legal rights.
Characteristics of Intangible Assets
- No physical substance, cannot be seen or touched
- Cost is amortized over the shorter of the useful or legal life
- Exception: Indefinitely life assets are not amortized
- Goodwill
- Trademarks
- Franchises (not all)
Wize Tip
Amortization is the same thing as depreciation, we simply use a different term when accounting for intangible assets.
Most Common Intangible Assets
- Patents
- Trademarks
- Copyrights
- Licenses
- Software
- Customer lists
- Goodwill