Live accounting tutors for accounting for intangible assets homework help
Are you finding difficulty in writing assignments on accounting for intangible assets? Then you are at a stone's throw for our service. Tutorsglobe, a leading online tutoring company offers accounting solutions at just one click away. You can take accounting homework help solutions or related topics like accounting for intangible assets assignment help by click at our website www.tutorsglobe.com . We have a large pool of specialized accounting tutors who are totally inclined and dedicated towards working at student's service. Classroom teaching is not sufficient for students especially in subjects like accounting. So we aim at providing the students the same classroom environment and help them in completion of assignments and indirectly gearing their overall academic performance.
Homework problem submission just a click away!
A student just needs to submit his/her assignment query along with the deadlines. Our tutors assure completion of assignments within the deadlines as well as they are highly committed for top quality solutions assignments.
Accounting for Intangible Assets
Intangible asset is defined as an asset that is not physical in nature or can call as untouchable. Corporate intellectual property like trademarks, patents, copyrights, business methodologies and other than that goodwill and brand recognition are all the common intangible assets taken in today's marketplace or environment.
An intangible asset can be either indefinite or definite which depends on the details or specifics of that asset. A company brand name or trade name is considered to be as indefinite asset, as it remains with the company as long as company continues its operations. On the other hand, if a company enters into a legal agreement regarding its patent having no plans of extending the agreement, then it would have a limited life and would be considered as a definite asset.
As the depreciable assets and natural resources accounted by the company, in the same way companies also account for intangible assets. The cost of intangible assets is thoroughly allocated to expense during the asset's full life or useful life or legal life, whichever is shorter, and this life is not at all allowed to exceed more than forty years. The procedure of allocating the cost of intangible assets to expense is called amortization. And the method usually companies use is the straight-line method to amortize intangible assets.
The formula which is used for calculating amortization on an intangible asset is similar to one used for calculating straight-line depreciation. Divide the initial cost of the intangible asset by the estimated or expected useful life of the intangible asset. For example, if it costs $20,000 to obtain a patent and it has an estimated useful life of twenty years, the amortized amount for per year is equal to $1,000.
Initial Cost / Useful Life = Amortization per Year
$20,000 / 20 = $1,000 per Year
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!