Answered: How do the impairment test for…

How do the impairment test for indefinite-lived intangible assets and definite-lived intangible assets differ under US GAAP?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 19GI

See similar textbooks

Related questions

Q: Explain Intangible Assets Not Subject to Amortization.

A: Intangible assets are those assets that represent some rights and privileges associated with owning…

Q: IAS 36 considers Accounting for Impairment in relation to Intangible Assets. Is this realistic in…

A: The impairment of the assets means a situation in which the market value of the asset is less as…

Q: Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the…

Q: Describe the differences in assets that are unrestricted, temporarily restricted, or permanently…

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: Write the definition, recognition, measurement and derecognition of Impairment of assets.

A: IFRS nine money Instruments gave on twenty four July 2014 is that the IASB's substitution of IAS…

Q: Briefly explain the differences between U.S. GAAP and IFRS in the measurement of an impairment loss…

A: Under International Financial Reporting Standards (IFRS), the impairment loss is recognized, when an…

Q: How is property, plant, and equipment measured on the balance sheet under IFRS? How does this differ…

A: Generally Accepted Accounting Principles: The principles which are followed by the management to…

Q: compare and contrast the recording of fixed assets under US GAAP and IFRS How would you determine…

A: GAAP (General Accepted Accounting Principles):-It is a collection of rules and standards prepared…

Q: Explain how the accounting treatment differs between purchased and internally developed intangible…

A: Intangible assets: Intangible assets are the long-term assets having no physical existence. However,…

Q: Explain the differences between US GAAP and IFRS in the calculation of a goodwill impairment loss in…

A: Answer: Goodwill is the type of asset that are intangible in nature. It is tested for annual…

Q: What is included in the original cost of property, plant, and equipment and intangible assets…

A: Original Cost of Property, Plant and equipment and intangible assets acquired in exchange…

Q: Identify the two exceptions to valuing property, plant, and equipment and intangible assets acquired…

Q: what is the definition of Intangible Assets and Goodwill and what are some of the types of…

A: The assets can be classified as fixed assets, current assets and intangible assets.

Q: What is the carrying value of Land after the recognition of the impairment loss?

Q: What is the difference between tangible and intangible assets?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: How do you identify an asset with reference to AASB?

A: Balance sheet: A balance sheet is a statement of assets, liability, and equity. It is prepared after…

Q: Which of the following can be classified as an intangible asset? Trademark and Goodwill Account…

A: Asset: Asset is something that gives future benefits to the holder. The asset is mainly classified…

Q: How does IFRS differ from current U.S. GAAP with respect to accounting for impairments?

A: When the asset value reduces due to market or technological factors which it turn fall below its…

Q: Is property, plant and equipment is classified as non-current assets?

A: Generally, the liquidity of the assets plays a significant role in determining whether they are…

Q: Briefly explain the difference between U.S. GAAP and IFRS in the measurement of an impairment loss…

A: Impairment loss of assets: Impairment loss of assets arises when the carrying value of the assets…

Q: Explain impairment procedures and presentation requirements for intangible assets.

A: Intangible assets are the long-term assets that do not have the physical appearance but it has the…

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to the acquisition of…

A: Property, Plant, and Equipment: Property, plant, and equipment are those assets which are…

Q: Under U.S. GAAP, litigation costs to successfully defend an intangible right are capitalized and…

A: IFRS: IFRS means international financial reporting standards. It is implemented to report the…

Q: Which of the following statements is correct? a. Both IFRS and GAAP permit revaluation of…

A: Generally Accepted Accounting Principles (GAAP):Generally Accepted Accounting Principles are the…

Q: Explain what is meant by the impairment of the value of property, plant, and equipment and…

A: Property, Plant, and Equipment: Property, Plant, and Equipment refers to the fixed assets, having a…

Q: What should be the pattern of amortization for a limited-life intangible?

Q: What is Indefinite life intangible assets?

A: Definition: Intangible assets: These are the long-term assets that are not physical in nature, but…

Q: Explain the process of ‘impairment of an asset’ and its definition? Explain how to account for an…

A: Impairment of assets means reducing the cost of assets when carrying amount is more than value in…

Q: non-current assets figure. This is another inconsistency that I don't understand. Please explain how…

A: Query regarding recognition of Assets of Intangible Assets of subsidiaries but not that of the…

Q: What does intangible assets includes in its items? Explain them in detail.

Q: Identify any differences between U.S. GAAP and International Financial Reporting Standards in the…

A: Property, Plant, and Equipment:Property, plant, and equipment are those assets which are tangible…

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to theutilization and…

A: Property, plant, and equipment are those assets which are tangible and long-term assets used in the…

Q: Compare and contrast US GAAP and IFRS in measuring an impairment loss for property, plant, and…

A: The Answer:

Q: ing intangible assets should be shown as a separate item on the balance sheet? Goodwill Franchise…

A: Goodwill occurs when there is a merger or acquisition between two companies. It represents the…

Q: Which of the following statements regarding intangible assets is incorrect? A. Intangible assets…

A: Balance sheet shows the position of a firm. It is prepared at the year end and depicts the true and…

Q: FASB recently issued a Proposed Accounting Standard Update on impairment for intangible assets.…

A: Those amendments were in response to concerns expressed by private companies and their stakeholders…

Q: What are the characteristics of an intangible asset?

A: Asset refers to any economic value resource for an individual, corporation or a country. It…

Q: Describe how IFRS and U.S. GAAP treat increases in the value of plant assets subsequent to their…

A: Increases in the value of plant assets subsequent to their acquisitions(but before their…

Q: Assets Classified as Intagible Assets Required: What is the total amount to be recognized as…

A: Intangible Assets Non current assets has two sub part one is tangible assets and another is…

Q: Just briefly describe how impairment losses for goodwill are calculated under U.S. GAAP and IFRS,…

A: The answer

Q: Describe the rationale and procedures for impairment testing for intangible assets other than…

A: Intangible assets: These are the long-term assets which are not physical in nature, but possess…

Question

How do the impairment test for indefinite-lived intangible assets and definite-lived intangible assets differ under US GAAP?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Discuss the primary differences between U.S. GAAP and IFRS with respect to theutilization and impairment of property, plant, and equipment and intangible assets.
Briefly explain the difference between U.S. GAAP and IFRS in the measurement of an impairment loss for property, plant, and equipment and finite-life intangible assets.
Discuss the primary differences between U.S. GAAP and IFRS with respect to the acquisition of property, plant, and equipment and intangible assets.
What is impairment in the context of intangible assets?
compare and contrast the recording of fixed assets under US GAAP and IFRS How would you determine the impairment of fixed assets? Provide an appropriate numerical example to support your response
One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant & equipment subsequent to initial recognition. Read IAS 16 and answer the following questions. Provide a list of the references you have used to search this topic. How should any claim for compensation from third parties for impairment be accounted for? How should the recoverability of the carrying amount of property, plant & equipment be accounted for? How should any revaluation surplus from a revalued asset be treated if the revalued asset is disposed of?
Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the accounting for intangible assets.
There are a number of differences between IFRS and U.S. GAAP for the treatment of intangible assets and impairments. The information related to intangible assets in IFRS is presented in IAS 38 ("Intangible Assets") and IFRS related to impairments is found in IAS 36 ("Impairment of Assets"). Please highlight 3 differences between the treatment for intangibles under GAAP and IFRS.
One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant & equipment subsequent to initial recognition. Read IAS 16 and answer the following questions. Provide a list of the references you have used to search this topic.?1) How should any claim for compensation from third parties for impairment be accounted for?2) How should the recoverability of the carrying amount of property, plant & equipment be accounted for?3) How should any revaluation surplus from a revalued asset be treated if the revalued asset is disposed of?4) What additional disclosures should be made if property, plant & equipment are stated at revalued amounts?5) Explain the effect on the company’s financial statements if a company switches from the historical cost principle to the revaluation model? How should this change be accounted for in the financial statements?