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  • What are the different types of intangible assets?

    Intangibles are considered long-lived assets that are not physical in nature or lack physical substance but are used throughout the ordinary course of business activities. Intangible assets are either identifiable intangible assets or unidentifiable. The only unidentifiable intangible asset that you will need to know is goodwill. Some examples of both identifiable and unidentifiable intangible...

  • How to Calculate Amortization for Intangible Assets:

    Amortization of intangible assets is essentially the same concept as depreciating physical (tangible) assets. If the intangible asset has a finite life (meaning the useful life of the intangible assets has a definitive end) then the company would amortize the intangible asset over the lesser of its estimated useful life (sometimes referred to as its...

  • What type of costs related to an intangible asset can be capitalized?

    When an intangible asset is purchased, the cost to capitalize on the balance sheet can include the actual purchase price, legal fees, costs incurred to get the intangible asset ready for use, and other incidental expenses.