WebOct 1, 2024 · This is created either when an indefinite-lived intangible is purchased in a stock acquisition and the amount of tax basis in the acquired intangible is less than the GAAP basis booked in purchase accounting, or in an asset acquisition when the intangible has the same beginning basis for GAAP and tax but has an indefinite life for GAAP … WebMay 12, 2024 · Intangible assets are divided into two major categories: definite and indefinite intangible assets. These categories are based on the lifespan of the intangible assets in the company. Definite ...

Intangible assets – can’t touch this ACCA Global

WebMar 23, 2024 · asset must be amortized over its useful life, unless the useful life is … WebDefinite vs. indefinite intangible assets: what’s the difference? Depending on whether there’s a foreseeable end to your intangible asset’s value, you can describe it as either definite or indefinite. For example, brand names have value for as long as the company is still in business, making them indefinite intangible assets. hbtu internal sliding 2022

Chapter 8: Intangible asset Flashcards Quizlet

Weba definite intangible asset would be a legal agreement to operate under another company's patent, with no plans of extending the agreement. The agreement thus has a limited life and is classified as a definite asset. 2 While an intangible asset doesn't have the obvious physical value of a factory or equipment, it can prove valuable for a firm and be critical to … WebAssuming a federal tax rate of 35%, the result is as in Exhibit 2. Y records a full valuation allowance of $350,000 and a tax provision expense of $350,000. In addition, a tax provision expense of $35,000 is recorded for the amortization of the trademark. The total tax provision expense is $385,000 in the current period. WebClassification of intangible assets based on useful life. Intangible assets are classified … hbtu hatu