Disclosure and calculations for intangible assets
ID:CVDCI

Video Overview

An intangible asset is an identifiable non-monetary asset without physical substance. Examples of intangible assets include computer software, patents, import quotas, franchises, customer lists, copyrights and fishing licenses. Take for example a customer list, it is worth more than the cost of the paper on which it is written, this is a good test to determine whether an asset is an intangible asset. Intangible assets have the same rules as property, plant and equipment (PPE). The only difference from an accounting point of view is that the asset account is called intangible assets, and that the depreciation written off intangible assets is called amortisation. In this tutorial we will focus on the year end disclosure and relevant calculations for intangible assets.