INTANGIBLE ASSETSPPT课件

12-*12-*CHAPTER12INTANGIBLEASSETSIntermediateAccountingIFRSEditionKieso,Weygandt,andWarfield12-* Describethecharacteristicsofintangibleassets. Identifythecoststoincludeintheinitialvaluationofintangibleassets. Explaintheprocedureforamortizingintangibleassets. Describethetypesofintangibleassets. Explaintheconceptualissuesrelatedtogoodwill. Describetheaccountingproceduresforrecordinggoodwill. Explaintheaccountingissuesrelatedtointangibleassetimpairments. Identifytheconceptualissuesrelatedtoresearchanddevelopmentcosts. Describetheaccountingforresearchanddevelopmentandsimilarcosts. Indicatethepresentationofintangibleassetsandrelateditems.LearningObjectives12-* Marketing-related Customer-related Artistic-related Contract-related Technology-related GoodwillIntangibleAssetIssuesTypesofIntangiblesImpairmentofIntangiblesResearchandDevelopmentCostsPresentationofIntangiblesandRelatedItems Characteristics Valuation Amortization Limited-lifeintangibles Reversalofimpairmentloss Indefinite-lifeintangiblesotherthangoodwill Goodwill IdentifyingR&D AccountingforR&D Similarcosts Conceptualquestions Intangibleassets R&Dcosts IntangibleAssets12-*IntangibleAssetIssuesLO1Describethecharacteristicsofintangibleassets.ThreeMainCharacteristics:Characteristics Identifiable, Lackphysicalexistence. Notmonetaryassets.Normallyclassifiedasnon-currentasset.12-*12-*12-*IntangibleAssetIssuesLO2Identifythecoststoincludeintheinitialvaluationofintangibleassets.InternallyCreatedIntangiblesIllustration12-1ResearchandDevelopmentStages12-*IntangibleAssetIssuesLO3Explaintheprocedureforamortizingintangibleassets.AmortizationofIntangiblesLimited-LifeIntangibles: Amortizebysystematicchargetoexpenseoverusefullife. Creditassetaccountoraccumulatedamortization. Usefullifeshouldreflecttheperiodsoverwhichtheassetwillcontributetocashflows. Amortizationshouldbecostlessresidualvalue. IFRSrequirescompaniestoassesstheresidualvaluesandusefullivesofintangibleassetsatleastannually.12-*IntangibleAssetIssuesLO3Explaintheprocedureforamortizingintangibleassets.AmortizationofIntangiblesIndefinite-LifeIntangibles: Noforeseeablelimitontimetheassetisexpectedtoprovidecashflows. Noamortization. Musttestindefinite-lifeintangiblesforimpairmentatleastannually.12-*IntangibleAssetIssuesLO3Explaintheprocedureforamortizingintangibleassets.Illustration12-2AccountingTreatmentforIntangiblesAmortizationofIntangibles12-*TypesofIntangiblesLO4Describethetypesofintangibleassets.SixMajorCategories: Marketing-related. Customer-related. Artistic-related. Contract-related. Technology-related. Goodwill.12-*TypesofIntangiblesLO4Describethetypesofintangibleassets.Marketing-RelatedIntangibleAssets Examples: Trademarksortradenames,newspapermastheads,Internetdomainnames,andnon-competitionagreements. IntheUnitedStatestrademarkortradenamehaslegalprotectionforindefinitenumberof10yearrenewalperiods. Capitalizeacquisitioncosts. Noamortization.12-*TypesofIntangiblesLO4Describethetypesofintangibleassets.Customer-RelatedIntangibleAssets Examples: Customerlists,orderorproductionbacklogs,andbothcontractualandnon-contractualcustomerrelationships. Capitalizeacquisitioncosts. Amortizedtoexpenseoverusefullife.12-*TypesofIntangiblesLO4Describethetypesofintangibleassets.Illustration:GreenMarketInc.acquiresthecustomerlistofalargenewspaperfor€6,000,000onJanuary1,2011.GreenMarketexpectstobenefitfromtheinformationevenlyoverathree-yearperiod.Recordthepurchaseofthecustomerlistandtheamortizationofthecustomerlistattheendofeachyear.CustomerList 6,000,000Jan.1 Cash 6,000,000Amortizationexpense 2,000,000Dec.31201020112012 Customerlist 2,000,00012-*TypesofIntangiblesArtistic-RelatedIntangibleAssets Examples: Plays,literaryworks,musicalworks,pictures,photographs,andvideoandaudiovisualmaterial. Copyrightgrantedforthelifeofthecreatorplus70years. Capitalizecostsofacquiringanddefending. Amortizedtoexpenseoverusefullife.MickeyMouseandLO412-*TypesofIntangiblesLO4Contract-RelatedIntangibleAssets Examples: Franchiseandlicensingagreements,constructionpermits,broadcastrights,andserviceorsupplycontracts. Franchise(orlicense)withalimitedlifeshouldbeamortizedtoexpenseoverthelifeofthefranchise. Franchisewithanindefinitelifeshouldbecarriedatcostandnotamortized.12-*TypesofIntangiblesLO4Describethetypesofintangibleassets.Technology-RelatedIntangibleAssets Examples: Patentedtechnologyandtradesecretsgrantedbyagovernmentalbody. Patentgivesholderexclusiveuseforaperiodof20years. Capitalizecostsofpurchasingapatent. ExpenseanyR&Dcostsindevelopingapatent. Amortizeoverlegallifeorusefullife,whicheverisshorter.12-*TypesofIntangiblesLO4Describethetypesofintangibleassets.Illustration:HarcottCo.incurs$180,000inlegalcostsonJanuary1,2011,tosuccessfullydefendapatent.Thepatent’susefullifeis20years,amortizedonastraight-linebasis.Harcottrecordsthelegalfeesandtheamortizationattheendof2011asfollows.Patent 180,000Jan.1 Cash 180,000Patentamortizationexpense 9,000Dec.31 Patent 9,00012-*TypesofIntangiblesLO5Explaintheconceptualissuesrelatedtogoodwill.GoodwillConceptually,representsthefutureeconomicbenefitsarisingfromtheotherassetsacquiredinabusinesscombinationthatarenotindividuallyidentifiedandseparatelyrecognized.Onlyrecordedwhenanentirebusinessispurchased.Goodwillismeasuredastheexcessof... costofthepurchaseoverthefairvalueoftheidentifiablenetassetspurchased.Internallycreatedgoodwillshouldnotbecapitalized.12-*Illustration:Multi-Diversified,Inc.decidesthatitneedsapartsdivisiontosupplementitsexistingtractordistributorship.ThepresidentofMulti-DiversifiedisinterestedinbuyingTractorlingCompany.TheillustrationpresentsthestatementoffinancialpositionofTractorlingCompany.RecordingGoodwillLO6Describetheaccountingproceduresforrecordinggoodwill.Illustration12-412-*Illustration:Multi-DiversifiedinvestigatesTractorling’sunderlyingassetstodeterminetheirfairvalues.RecordingGoodwillLO6Describetheaccountingproceduresforrecordinggoodwill.TractorlingCompanydecidestoacceptMulti-Diversified’sofferof$400,000.Whatisthevalueofthegoodwill,ifany?Illustration12-512-*Illustration:DeterminationofGoodwill.RecordingGoodwillLO6Describetheaccountingproceduresforrecordinggoodwill.Illustration12-612-*Illustration:Multi-Diversifiedrecordsthistransactionasfollows.RecordingGoodwillLO6Describetheaccountingproceduresforrecordinggoodwill.Property,Plant,andEquipment 205,000Patents 18,000Inventories 122,000Receivables 35,000Cash 25,000Goodwill 50,000 Liabilities 55,000 Cash 400,00012-*GoodwillGoodwillWrite-off Goodwillconsideredtohaveanindefinitelife. Shouldnotbeamortized. Onlyadjustcarryingvaluewhengoodwillisimpaired.LO6Describetheaccountingproceduresforrecordinggoodwill.BargainPurchase Purchasepricelessthanthefairvalueofnetassetsacquired. Amountisrecordedasagainbythepurchaser.12-*ImpairmentofIntangibleAssetsImpairmentofLimited-LifeIntangiblesLO7Explaintheaccountingissuesrelatedtointangible-assetimpairments.Sameasimpairmentforlong-livedassetsinChapter11.Illustration11-1512-*Illustration:Lerch,Inc.hasapatentonhowtoextractoilfromshalerock,withacarryingvalueof$5,000,000attheendof2010.Unfortunately,severalrecentnon-shale-oildiscoveriesadverselyaffectedthedemandforshale-oiltechnology,indicatingthatthepatentisimpaired.Lerchdeterminestherecoverableamountforthepatent,basedonvalue-in-use(becausethereisnoactivemarketforthepatent).Lerchestimatesthepatent’svalue-in-useat$2,000,000,basedonthediscountedexpectednetfuturecashflowsatitsmarketrateofinterest.ImpairmentofIntangibleAssetsLO7Explaintheaccountingissuesrelatedtointangibleassetimpairments.12-*ImpairmentofIntangibleAssetsLO7Explaintheaccountingissuesrelatedtointangibleassetimpairments.Illustration11-15$5,000,000$2,000,000Unknown$2,000,000$3,000,000ImpairmentLossCalculatetheimpairmentloss(basedonvalue-in-use).12-*ImpairmentofIntangibleAssetsLO7Explaintheaccountingissuesrelatedtointangibleassetimpairments.Illustration11-15$5,000,000$2,000,000Unknown$2,000,000$3,000,000ImpairmentLossCalculatetheimpairmentloss(basedonvalue-in-use).Entrytorecordtheimpairmentloss.LossonImpairment 3,000,000 Patents 3,000,00012-*ImpairmentofIntangibleAssetsLO7Explaintheaccountingissuesrelatedtointangibleassetimpairments.Illustration:Thecarryingvalueofthepatentafterimpairmentis$2,000,000.Lerch’samortizationis$400,000($2000,000/5)overtheremainingfiveyearsofthepatent’slife.Theamortizationexpenseandrelatedcarryingamountaftertheimpairmentisshownbelow:ReversalofImpairmentLossIllustration12-812-*ImpairmentofIntangibleAssetsLO7Explaintheaccountingissuesrelatedtointangibleassetimpairments.Earlyin2012,basedonimprovingconditionsinthemarketforshale-oiltechnology,Lerchremeasurestherecoverableamountofthepatenttobe$1,750,000.Inthiscase,Lerchreversesaportionoftherecognizedimpairmentloss.ReversalofImpairmentLossPatents($1,750,000-$1,600,000) 150,000 RecoveryofImpairmentLoss 150,00012-*ImpairmentofIntangibleAssetsImpairmentofIndefinite-LifeIntangiblesOtherthanGoodwillLO7Explaintheaccountingissuesrelatedtointangibleassetimpairments. Shouldbetestedforimpairmentatleastannually. Impairmenttestisthesameasthatforlimited-lifeintangibles.Thatis, comparetherecoverableamountoftheintangibleassetwiththeasset’scarryingvalue. Iftherecoverableamountislessthanthecarryingamount,thecompanyrecognizesanimpairment.12-*Illustration:ArconRadiopurchasedabroadcastlicensefor$2,000,000.Thelicenseisrenewableevery10years.ArconRadiohasrenewedthelicensewiththeGCCtwice,ataminimalcost.Becauseitexpectscashflowstolastindefinitely,Arconreportsthelicenseasanindefinite-lifeintangibleasset.Recently,theGCCdecidedtoauctiontheselicensestothehighestbidderinsteadofrenewingthem.Basedonrecentauctionsofsimilarlicenses,ArconRadioestimatesthefairvaluelesscoststosell(therecoverableamount)ofitslicensetobe$1,500,000.ImpairmentofIntangibleAssetsLO7Explaintheaccountingissuesrelatedtointangibleassetimpairments.Illustration12-912-*ImpairmentofIntangibleAssetsImpairmentofGoodwillLO7Explaintheaccountingissuesrelatedtointangibleassetimpairments. Companiesmusttestgoodwillatleastannually. Impairmenttestisconductedbasedonthecash-generatingunittowhichthegoodwillisassigned. Becausethereisrarelyamarketforcash-generatingunits,estimationoftherecoverableamountforgoodwillimpairmentsisusuallybasedonvalue-in-useestimates.12-*ImpairmentofIntangibleAssetsIllustration:KohlbuyCorporationhasthreedivisions.Itpurchasedonedivision,PrittProducts,fouryearsagofor$2million.Unfortunately,Prittexperiencedoperatinglossesoverthelastthreequarters.Kohlbuymanagementisnowreviewingthedivision(thecash-generatingunit),forpurposesofitsannualimpairmenttesting.PrittDivision’snetassets,includingtheassociatedgoodwillof$900,000fromthepurchase:LO7Illustration12-1012-*ImpairmentofIntangibleAssetsIllustration11-15$2,400,000$2,800,000Unknown$2,800,000KohlbuydeterminestherecoverableamountforthePrittDivisiontobe$2,800,000,basedonavalue-in-useestimate.LO7NoImpairment12-*ImpairmentofIntangibleAssetsIllustration11-15$2,400,000$1,900,000Unknown$1,900,000AssumethattherecoverableamountforthePrittDivisionis$1,900,000,insteadof$2,800,000.LO7$500,000ImpairmentLoss12-*Unknown$1,900,000ImpairmentofIntangibleAssetsIllustration11-15$2,400,000$1,900,000AssumethattherecoverableamountforthePrittDivisionis$1,900,000,insteadof$2,800,000.LO7$500,000ImpairmentLossLossonImpairment 500,000 Goodwill 500,000Goodwillimpairmentlossreversalsarenotpermitted.12-*ResearchandDevelopmentCostsLO8Identifytheconceptualissuesrelatedtoresearchanddevelopmentcosts.Frequentlyresultsinthedevelopmentofpatentsorcopyrightssuchas: newproduct, process, idea, formula, composition,or literarywork.Researchanddevelopment(R&D)costsarenotinthemselvesintangibleassets.12-*ResearchandDevelopmentCostsLO8Identifytheconceptualissuesrelatedtoresearchanddevelopmentcosts.Companiesspendconsiderablesumsonresearchanddevelopment.Illustration12-1212-*ResearchandDevelopmentCostsLO8Identifytheconceptualissuesrelatedtoresearchanddevelopmentcosts. Researchcostsmustbeexpensedasincurred. Developmentcostsmayormaynotbeexpensedasincurred. CapitalizationbeginswhentheprojectisfarenoughalongintheprocesssuchthattheeconomicbenefitsoftheR&Dprojectwillflowtothecompany(theprojectiseconomicallyviable).12-*IdentifyingR&DActivitiesResearchandDevelopmentCostsLO8Identifytheconceptualissuesrelatedtoresearchanddevelopmentcosts.ResearchActivitiesOriginalandplannedinvestigationundertakenwiththeprospectofgainingnewscientificortechnicalknowledgeandunderstanding.ExamplesLaboratoryresearchaimedatdiscoveryofnewknowledge;searchingforapplicationsofnewresearchfindings.DevelopmentActivitiesApplicationofresearchfindingsorotherknowledgetoaplanordesignfortheproductionofneworsubstantiallyimprovedmaterials,devices,products,processes,systems,orservicesbeforethestartofcommercialproductionoruse.ExamplesConceptualformulationanddesignofpossibleproductorprocessalternatives;constructionofprototypesandoperationofpilotplants.Illustration12-1312-*AccountingforR&DActivitiesCostsAssociatedwithR&DActivities: Materials,Equipment,andFacilities Personnel PurchasedIntangibles ContractServices IndirectCostsResearchandDevelopmentCostsLO9Describetheaccountingforresearchanddevelopmentandsimilarcosts.12-*OtherCostsSimilartoR&DCosts Start-upcostsforanewoperation. shouldexpensedasincurred. Initialoperatinglosses. Shouldnotbecapitalized. Advertisingcosts. Shouldexpensedasincurred.ResearchandDevelopmentCostsLO9Describetheaccountingforresearchanddevelopmentandsimilarcosts.IfR&D–relatedintangibles(oftenreferredtoasin-processR&D)arealsoacquiredinabusinesscombination,theyarealsorecognizedandmeasuredatfairvalue.12-*1. Investmentinasubsidiarycompany.2. Timberland. 3. Costofengineeringactivityrequiredtoadvancethedesignofaproducttothemanufacturingstage.4. Leaseprepayment.5. Costofequipmentobtained.6. Costofsearchingforapplicationsofnewresearchfindings.ItemClassificationResearchandDevelopmentCostsE12-1:Indicatehowitemsonthelistbelowwouldgenerallybereportedinthefinancialstatements.LO9 Long-terminvestments PP&E R&Dexpense Prepaidrent PP&E R&Dexpense 12-* Costincurredintheformationofacorporation. Operatinglossesincurredinthe start-upofabusiness. Trainingcostsincurredinstart-upofnewoperation. Purchasecostofafranchise. Goodwillgeneratedinternally. Costoftestinginsearchofproductalternatives.ResearchandDevelopmentCostsLO9Describetheaccountingforresearchanddevelopmentandsimilarcosts. Expense Operatingloss Expense Intangible Notrecorded(expense) R&DexpenseItemClassification12-* Goodwillacquiredinthepurchase ofabusiness. Costofdevelopingapatent. Costofpurchasingapatentfrom aninventor. Legalcostsincurredinsecuringa patent. Unrecoveredcostsofasuccessfullegalsuittoprotectthepatent.ResearchandDevelopmentCostsLO9Describetheaccountingforresearchanddevelopmentandsimilarcosts. Intangible R&Dexpense Intangible Intangible IntangibleItemClassification12-* Costofconceptualformulationof possibleproductalternatives. Costofpurchasingacopyright. Developmentcostsincurredafterachievingeconomicviability. Long-termreceivables. Costofdevelopingatrademark. Costofpurchasingatrademark.ResearchandDevelopmentCosts R&Dexpense Intangible Intangible Long-terminvestment Expense IntangibleItemClassificationLO9Describetheaccountingforresearchanddevelopmentandsimilarcosts.12-* CostofequipmentacquiredthatwillhaveusesinR&Dprojectsoverthenext5years.(usedstraight-linedepreciation) MaterialsconsumedinR&Dprojects ConsultingfeespaidtooutsidersforR&Dprojects PersonnelcostsofpersonsinvolvedinR&Dprojects IndirectcostsreasonablyallocabletoR&Dprojects MaterialspurchasedforfutureR&Dprojects$330,00059,000100,000128,00050,00034,000$66,00059,000100,000128,00050,0000R&DExpense$403,000$330,000/5=$66,000ResearchandDevelopmentCostsE12-17:Computetheamounttobereportedasresearchanddevelopmentexpense.LO9Describetheaccountingforresearchanddevelopmentandsimilarcosts.12-*StatementofFinancialPosition Intangibleassetsshownasaseparateitem. Reportingissimilartothereportingofproperty,plant,andequipment. Contraaccountsmaynotbeshownforintangibles. Companiesshouldreportasaseparateitemallintangibleassetsotherthangoodwill. Goodwillshouldreportseparately.PresentationsofIntangiblesandRelatedItemsLO10Indicatethepresentationofintangibleassetsandrelateditems.PresentationofIntangibleAssets12-*IncomeStatement Amortizationexpense. Impairmentlossesandreversalsotherthangoodwillseparately(usuallyintheoperatingsection).PresentationsofIntangiblesandRelatedItemsLO10Indicatethepresentationofintangibleassetsandrelateditems.PresentationofIntangibleAssets12-*PresentationsofIntangiblesandRelatedItemsLO10Indicatethepresentationofintangibleassetsandrelateditems.PresentationofIntangibleAssetsIllustration12-1512-*PresentationsofIntangiblesandRelatedItemsLO10Indicatethepresentationofintangibleassetsandrelateditems.PresentationofResearchandDevelopmentCostIllustration12-1612-* BothU.S.GAAPandIFRSsegregatethecostsassociatedwithresearchanddevelopmentintothetwocomponents.CostsintheresearchphasearealwaysexpensedunderbothIFRSandU.S.GAAP.UnderIFRS,however,costsinthedevelopmentphasearecapitalizedonceeconomicviabilityisachieved. WhileIFRSpermitssomecapitalizationofinternallygeneratedintangibleassets(e.g.,brandsanddevelopmentcoststhatmeeteconomicviabilitycriteria),U.S.GAAPrequiresexpensingofallresearchanddevelopmentcosts.12-* UnderU.S.GAAP,impairmentlossismeasuredastheexcessofthecarryingamountovertheasset’sfairvalue.UnderIFRS,theimpairmenttestisbasedontheasset’scarryingamountcomparedtoitsrecoverableamount(thehigheroftheasset’sfairvaluelesscoststosellanditsvalue-in-use). WhileIFRSallowsreversalofimpairmentlosseswhentherehasbeenachangeineconomicconditionsorintheexpecteduseoftheasset,underU.S.GAAP,impairmentlossescannotbereversedforassetstobeheldandused;theimpairmentlossresultsinanewcostbasisfortheasset.IFRSandU.S.GAAParesimilarintheaccountingfortheimpairmentsofassetsheldfordisposal.12-* Withissuanceofarecentconvergedstatementonbusinesscombinations(IFRS3andSFASNo.141—Revised),IFRSandU.S.GAAPareverysimilarforintangiblesacquiredinabusinesscombination.Thatis,companiesrecognizeanintangibleassetseparatelyfromgoodwilliftheintangiblerepresentscontractualorlegalrightsoriscapableofbeingseparatedordividedandsold,transferred,licensed,rented,orexchanged.Inaddition,underbothU.S.GAAPandIFRS,companiesrecognizeacquiredin-processresearchanddevelopment(IPR&D)asaseparateintangibleassetifitmeetsthedefinitionofanintangibleassetanditsfairvaluecanbemeasuredreliably.12-*Copyright©2011JohnWiley&Sons,Inc.Allrightsreserved.ReproductionortranslationofthisworkbeyondthatpermittedinSection117ofthe1976UnitedStatesCopyrightActwithouttheexpresswrittenpermissionofthecopyrightownerisunlawful.RequestforfurtherinformationshouldbeaddressedtothePermissionsDepartment,JohnWiley&Sons,Inc.Thepurchasermaymakeback-upcopiesforhis/herownuseonlyandnotfordistributionorresale.ThePublisherassumesnoresponsibilityforerrors,omissions,ordamages,causedbytheuseoftheseprogramsorfromtheuseoftheinformationcontainedherein.Copyright12-*12-*CHAPTER13CURRENTLIABILITIES,PROVISIONS,ANDCONTINGENCIESIntermediateAccountingIFRSEditionKieso,Weygandt,andWarfield12-* Describethenature,type,andvaluationofcurrentliabilities. Explaintheclassificationissuesofshort-termdebtexpectedtoberefinanced. Identifytypesofemployee-relatedliabilities. Explaintheaccountingfordifferenttypesofprovisions. Identifythecriteriausedtoaccountforanddisclosecontingentliabilitiesandassets. Indicatehowtopresentandanalyzeliability-relatedinformation.LearningObjectives12-*CurrentLiabilitiesProvisionsPresentationandAnalysis Whatisaliability? Whatisacurrentliability? Recognition Measurement Commontypes Disclosures Presentationofcurrentliabilities AnalysisofcurrentliabilitiesCurrentLiabilitiesandContingenciesContingencies Contingentliabilities Contingentassets12-*WhatisaLiability?Threeessentialcharacteristics: Presentobligation. Arisesfrompastevents. Resultsinanoutflowofresources(cash,goods,services).12-*WhatisaCurrentLiability?Currentliabilityisreportedifoneoftwoconditionsexi