Intangible Assets Other Than Goodwill [ READ ]
Hassan Basodan
An entity from which future economic benefits can be derived is known as an asset. Intangible assets are those entities that have no physical existence such as goodwill, patents, copyrights, customer database, software, business plans etc. In order to account for the transactions related to these intangible assets in the company’s financial statements they take guidance from ASC 350 - Intangibles-Goodwill and others, IAS 36 – Impairment of Assets, and IAS 38 – Intangible assets. There are primarily two accounting systems to account for the transactions namely US GAAP and IFRS developed by Financial Accounting Standard Board (FASB) and International Accounting Standard Board (IASB) respectively. The two accounting systems are primarily different as US GAAP has a “rules –based approach” while IFRS has more of a “ principles – based approach” while setting the guidelines. As the world is rapidly converting into a global village, many companies have multi-national transactions.
Hassan Basodan
An entity from which future economic benefits can be derived is known as an asset. Intangible assets are those entities that have no physical existence such as goodwill, patents, copyrights, customer database, software, business plans etc. In order to account for the transactions related to these intangible assets in the company’s financial statements they take guidance from ASC 350 - Intangibles-Goodwill and others, IAS 36 – Impairment of Assets, and IAS 38 – Intangible assets. There are primarily two accounting systems to account for the transactions namely US GAAP and IFRS developed by Financial Accounting Standard Board (FASB) and International Accounting Standard Board (IASB) respectively. The two accounting systems are primarily different as US GAAP has a “rules –based approach” while IFRS has more of a “ principles – based approach” while setting the guidelines. As the world is rapidly converting into a global village, many companies have multi-national transactions.
