Skip to main content
뒤로

Intangible Assets and Amortization definitions

컨트롤 버튼이 '내비게이션' 모드로 변경되었습니다.
1/14
  • Intangible Asset
    Long-term resource lacking physical substance, providing special rights or privileges to a business.
  • Limited Life
    Characteristic of an asset that is expected to provide benefits for a set period, after which it is amortized.
  • Indefinite Life
    Status of an asset with no foreseeable end to its useful economic benefit, requiring annual impairment testing.
  • Amortization
    Systematic allocation of the cost of an intangible asset with a limited life over its useful period.
  • Straight-Line Method
    Technique that spreads the cost of an asset evenly over its useful life, commonly used for amortization.
  • Patent
    Exclusive government-granted right to produce and sell an invention, typically lasting up to 20 years.
  • Copyright
    Legal protection for creative works, such as books or software, lasting 70 years beyond the creator's life.
  • Trademark
    Legal protection for symbols, brand names, or slogans, which may have finite or indefinite legal duration.
  • Franchise
    Privilege granted by a business to sell its products or use its branding, often with an indefinite useful life.
  • License
    Permission from a business or authority to use a product, service, or brand, sometimes with indefinite duration.
  • Goodwill
    Excess value paid in a company acquisition, reflecting intangible qualities like reputation or customer loyalty.
  • Impairment
    Reduction in the recorded value of an asset when its market value drops below its carrying amount.
  • Research and Development Costs
    Expenditures for creating new products or processes, required to be expensed as incurred, not capitalized.
  • Amortization Expense
    Income statement item representing the periodic allocation of an intangible asset's cost over its useful life.