Depreciation And Amortization For Intangible Assets

Patent : A patent is a government license that gives the holder exclusive rights to a process, design or new invention for a designated period of time. Applications for patents are usually handled by a government agency. You can use a patent to protect your invention. It gives you the right to take legal action against anyone who makes, uses, sells or imports it without your permission.

A trademark protects well-known brand logos and helps differentiate them from similar products or services. When you register for a trademark, you are entitled to display the ® symbol (registered trade mark). If you are registered for this, others must request permission If they wish to use your brand. If permission is not requested, legal action can be

Patents are used to protect new, and sometimes improved, products. Patents guard inventions. The owner of a patent has the exclusive right to make, sell, or otherwise use and profit from a tangible item for a certain period of time. A business or individual must apply for a patent through our government's United States Patent and Trademark Office in order to obtain one.

2.4 Discuss rights and implications of copyright law: is a form of protection provided by the laws of the United States to authors

The last two entries recorded as part of long-term asset are other long-term assets and amortization. Other long-term assets are intangible assets that the company obtained through an acquisition such as “brand names, trademarks, patents, customer relationships, and employee” (Edition, 2011, p. 750). As a replacement for depreciation, when the value of the assets decline over time, it is recorded as an amortization or as impaired charges

Depreciation involves spreading the cost of an item over several years or over its useful lifetime. This is an accounting of the reduction in value of the merchandise and it will be reflected as an expense on the company’s income statement. Therefore, this is important because nothing holds its full value over time and organizations need to account for the devaluation. Accountants and financial officers follow GAAP guidelines to determine depreciation. The depreciation of an item is an estimated guess not a proven reality.

The amounts of assets and liabilities under the SFAB 143 are recorded each year as accretion and depreciation expenses the capitalized asset retirement would be allocated in a rational and systematic manner while the depreciation expense would be recorded over the estimated useful life of the asset (Guinn, Schroeder, and Sevi, 2005)Depreciation would be calculated through increasing the asset base by dividing using the assets useful life which is adopted by Statements of the Financial Accounting Standards (SFAS) 143 .The accretion expense is calculated through multiplying the balance of recorded liability while using the company's credit-adjusted discount rate that occurs each year that is also referred to as amortization of the present value discount that is associated with the asset retirement obligation.

Other intangible assets comprise of registered trademarks of Dreamworld and licences related to other business units of the group. With a total increase of 85% in 2016, other intangible assets

Patents are rights enforceable by law. It is the protection given to the inventors for their invention. Patents are granted for specific period. By patenting an invention, individual restricts the exploitation of his/her patent by others on a commercial level. Invention must be new idea or solution and useful. It may be the development of new device, substance method or process. Thus, patent can be product patent or process patent. Process patent protects the patentee also against the goods if imported using that patented invention. Invention must be differentiated from discovery. However , patentable invention can be one discovered if it explains how it can be successfully employed in

Intangible assets are operational assets that lack physical substance. However, the future economic benefits that are derived from intangible assets are usually less certain than tangible operational assets. Due to this uncertainty, the valuation of these assets rely upon multiple estimations, therefore the reliability of the information may not be as accurate. Additionally, the relevance of the data in the decision making process comes into question since the future benefits are unknown. Copyrights, franchises, goodwill, patents, and trademarks are just a few examples of intangible assets.

Purchased intangibles are originally valued at cost. The useful life of this asset is considered finite or indefinite. The residual value is presumed to be zero unless certain circumstances occur. The asset’s useful life is deemed indefinite when there is no estimable limit to the period over which it is expected to generate cash flows for the entity. An asset with an indefinite life requires no amortization until the life is determined to be definite. Under IAS 38 and U.S. GAAP, intangibles acquired in a business

In general, intangible assets are assets that are not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all common intangible assets in today's marketplace.

The intangible asset needs to be identifiable which means that the organization should be able to dispose of the asset without disposing off the whole of the business at the same time.

One of these is with regards to goodwill and intangible assets with identifiable useful lives.

Intangible resources are largely invisible, but over time become more important to the firm than tangible assets because they can be a main source for a competitive advantage.