WebMar 1, 2016 · Indefinite vs. Finite Life. The first decision to be made when determining an intangible asset’s remaining useful life is whether there should be one at all. An intangible asset is considered to have a finite life expectancy if there is a foreseeable limit on the period over which the asset is expected to contribute to cash flow.

Impairment of Non-Financial Assets GAAP Dynamics

WebJul 17, 2014 · A conclusion that the useful life of an intangible asset is indefinite should not depend on planned future expenditure in excess of that required to maintain the asset at that standard of performance.” ... Back in 2003, definite lives accounted for little more than 20% of all cases. By 2013, this number had increased to around 60%. Even more ... WebAug 3, 2024 · This article explains if and when a detailed impairment test as set out in … incentive examples economics

11.2 Intangible Assets: Initial Recognition and Measurement

WebUSEFUL LIFE 88 INTANGIBLE ASSETS WITH FINITE USEFUL LIVES 97 ... INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVES 107 Review of useful life assessment 109 RECOVERABILITY OF THE CARRYING AMOUNT—IMPAIRMENT LOSSES 111 RETIREMENTS AND DISPOSALS 112 DISCLOSURE 118 General 118 Intangible … WebOct 1, 2024 · This is created either when an indefinite-lived intangible is purchased in a stock acquisition and the amount of tax basis in the acquired intangible is less than the GAAP basis booked in purchase accounting, or in an asset acquisition when the intangible has the same beginning basis for GAAP and tax but has an indefinite life for GAAP … WebIf the intangible asset has an indefinite life, no amortization is recorded, but it will be subject to review at the end of each reporting period. Should this status change to a definite life, it is treated as a change in estimate … incentive event ideas