In this lesson, Nick Palazzolo, CPA, sheds light on intangible assets, clarifying that they are nonphysical and cannot be depreciated, but rather are subject to amortization. With a touch of humor, he breaks down the concept into understandable pieces. He goes over the criteria required for recognizing intangible assets and the nuances of classifying them as finite or indefinite. Nick provides practical examples, including the handling of goodwill, to illustrate how to identify signs of impairment for intangible assets with indefinite lives. Furthermore, he explains the calculation of carrying amount for these assets and prepares you to tackle related journal entries with an air of confidence, suggesting that this area of accounting offers numerous points for diligent study.
Lesson: Intangibles Overview and Objectives
In this lesson, Nick Palazzolo, CPA, sheds light on intangible assets, clarifying that they are nonphysical and cannot be depreciated, but rather are subject to amortization. With a touch of humor, he breaks down the concept into understandable pieces. He goes over the criteria required for recognizing intangible assets and the nuances of classifying them as finite or indefinite. Nick provides practical examples, including the handling of goodwill, to illustrate how to identify signs of impairment for intangible assets with indefinite lives. Furthermore, he explains the calculation of carrying amount for these assets and prepares you to tackle related journal entries with an air of confidence, suggesting that this area of accounting offers numerous points for diligent study.
Updated: Oct. 20, 2021 Create an account