Essays on Intangible Asset

As per your request, I have prepared guidance on how to account for R&D costs related to the development of Achuin in accordance with the U.S. GAAP. The cost items discussed in the memo include; R&D expenses, purchase of patent, purchase of centrifuge, and the legal fees associated with the patent approval. R&D costs and the costs of purchasing the patent should be expensed while the costs of the centrifuge and the legal fees of applying for the patent should be capitalized. As a rule, R&D costs are expensed in the period they occur because at the time R&D ...

Q1: Provide at least two examples of EACH type of Intellectual Property.

Patents, copyrights, trade secrets and trademarks are the four forms of intellectual property. Utility, design, and patents are the three kinds of patents. On the other hand, the different forms of trademarks are brands, company names, and logos. On the contrary, the different forms of trade secrets are marketing plans, product formulas and employee rosters. Copyrights take forms in live recordings, photos or artistry (Bouchoux 4).

Q2: How can an intangible asset create value for an organization? Explain with examples.

An intangible asset such as trademark increases the organizational value by safeguarding the company production secrets from being stolen. An example of a trade secret is the coke’s formula. Nonetheless, an intangible ...

GOODWILL CASE

Despite the fact that, a business venture may claim to own numerous intangible assets, not all of its intangible assets qualify to appear on the balance sheet. Intangible assets will only appear on the balance sheet based on the following criteria of restrictions; intangible assets will qualify to appear on the balance sheet only if; the business venture acquired the assets i.e. if the intangible assets are not developed within the business enterprise. Also intangible assets can only appear on the balance sheet if they can be identified in terms of value and have a useful timeline and therefore ...

IFRS and U.S. GAAP, both define the impairment indicators in similar manner to assess the impairment of intangible asset. It is the requirement in both, IFRS and US GAAP that the intangible assets which have long life or indefinite life should be reviewed every year to assess the impairment. This should be done irrespective of the presence of the indicators for impairment. Moreover, Both GAAP and IFRS require that when the asset is recognized to be impaired then the asset has to be written down and the impairment loss should be recognized. IAS 6 for Impairment of Assets and ...

Abstract

Research is a deliberate planned investigation carried out with the aim of developing and acquiring new technical or scientific knowledge and understanding. On the other hand, development refers to the application of the research findings or other useful knowledge to plan, design new products or improve the firm’s final products, devices, process of manufacturing, systems or services, usually before commercial production. Different firms account for R&D costs a bit differently depending on whether they follow local standards or international standards. The accounting for R&D cost has evolved since 1974 this has been due to views of different accountants on ...