whitebard Intangible Assets 33 on kaplan

U.S. GAPP requires the disclosure of

Impairment losses

Allows reversals only on assets held for sale

Average age

Ending accumulated depreciation/ annual depreciation expense

Remaining useful life =

Ending net PP&E/ annual depreciation expense

Average age

Will not be found in the financial statement footnotes of a firm

Carrying value

OG cost- accumulated depreciation

upward revaluation

Increase bank value

Increase depreciation expense(in future periods, lowers net income)

Finite

End date

Cost of intangible assets is amortized if

The asset has a finite life and was purchased or acquired in business combo

Development cost

Are capitalized under IFRS, research cost are expenses as incurred

Development cost under US GAAP

Are capitalized once considered to be technically feasible and software intended for sale

Asset impairments cause

A loss on the I/s, has no impact on cash flows under IFRS

Under IFRS an asset is impaired when

Carrying value is greater than the recovery amount

Recovery amount is which ever is greater

1) Fair value(value in use) - selling cost

2) pv of expected cash flows

Under IFRS if an asset is impaired

it gets written down to the recoverable amount

Under U.S. GAAP an asset is impaired when

Carrying value is greater than assets undiscounted future cash flows

Under U.S. GAAP is an asset is impaired

It’s written down to its fair value