Accounting Of Intangible Assets

Defined terms. Definition of Intangible assets. Intangible assets. Intangible assets classification in accounting. Intangible assets impairment and derecognition. Final provisions.

Briefly intangible assets this property has some value, but does not have any physical shape. As for the more intangible, it should first be separated, or talking about his general understanding or evaluation according to the accounting standards. In terms of accounting, in some places you can meet the intangible assets allocated shares or other financial assets, but in most cases these assets are released as financial assets separately and intangible assets includes the following main asset types:

Intellectual property various patents, licenses, rights in some form or other knowledge and their use.

 Name Value Lithuania rarely encountered, but for major international companies that invest billions in its name awareness, the balance sheet value of its name added to the intangible assets.

 Goodwill Goodwill in the balance sheet results in the consolidation of the acquired company's assets if the purchase price differs from the carrying value. Goodwill does not have a real value, and is gradually amortized.

Intangible assets are recognized if it meets the definition of an intangible assets and recognition of these criteria:

reasonably probable that future economic benefits of property; Intangible assets are fixed assets component. Intangible assets recognized identifiable non monetary asset without physical substance, controlled by the entity that can be measured reliably and is expected by using directly gains or indirect economic benefits. Although the standard does not specify the duration of use of property, intangible assets include only those assets that are used in the company for more than one year.

  The acquisition (production) cost can be reliably measured and separated from the other assets; Intangible assets are recognized,intangible assets acquisition (production) cost. The company is generally able to reliably determine the intangible assets of the cost of acquisition, as evidenced by the acquisition of assets of the relevant swap under which it will be assessed and the production cost can be reliably determined on the basis of contracts with external parties relating to materials, labor and other resources used in producing property acquisition.

The company may dispose of the property, to control or limit the use of others. Intangible assets are recognized if the company:

can use to produce goods or services, or for administrative purposes, lease, sell, exchange and so on; 

it controls, which have the right to control the intangible assets of the economic benefits, as well as to prohibit others to use it. In assessing the likelihood of economic benefits, should be guided by the initial recognition of intangible assets at its disposal reliable information and compliance with the requirements of not only formal, but also the principle of substance. Rate the future economic benefits of the intangible asset it is difficult due to the high uncertainty of the estate. Some of the objects of intangible assets associated with the product development and production (patents, copyrights, development jobs), the other the demand for the creation and storage (of goods, service marks). The future economic benefits that neither the size nor the time receiving is often not defined, can be very high and equal to zero. Future economic benefits of the intangible assets may consist of products and services sales revenue, cost savings or other benefits derived from the company's intangible assets used. One of the most important criteria for recognition of intangible assets is his control.