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Basic Question 0 of 6
Which of the following reflects the proper accounting treatment of internally developed patents?
B. Expense as a non-operating item under other expenses and losses
C. Capitalize as an intangible asset and amortize
A. Expense immediately as research and development costs
B. Expense as a non-operating item under other expenses and losses
C. Capitalize as an intangible asset and amortize
User Contributed Comments 5
| User | Comment |
|---|---|
| achu | INTERNAL - key word here. |
| swisha | ^^good catch |
| Shaan23 | Again I guess we're assuming GAAP.... |
| mmccoy | GAAP is assumed unless stated otherwise |
| khalifa92 | all internally developed are expenses other than IFRS one exception. |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
compare the financial reporting of the following types of intangible assets: purchased, internally developed, acquired in a business combination;
describe the different amortisation methods for intangible assets with finite lives and calculate amortisation expense;
describe how the choice of amortisation method and assumptions concerning useful life and residual value affect amortisation expense, financial statements, and ratios;
CFA® 2024 Level I Curriculum, Volume 3, Module 23.