IFA63 – Accounting for Intangible Assets & Amortization – Intermediate Accounting

Download the Workbook: http://www.tonybell.com Unlock 100+ Members Accounting Tutorials: https://www.youtube.com/channel/UCNFClg6mzfZ5ixpuH9c7f1A/join In This Video: We work through Problem 12-1A, diving into the accounting treatment for various Intangible Assets. Using a scenario where Riverwalk Company acquires several intangibles throughout the year, we walk step-by-step through recording the initial purchase and the December 31 partial-year amortization entries for a Copyright, a Trademark, a Customer List, and a Franchise agreement. Because the assets were purchased on different dates (February 1, April 1, July 1, and November 1), we pay special attention to prorating the straight-line amortization. Finally, we tackle a series of bonus conceptual questions to explain the difference between legal and economic life, how to handle indefinite-life intangibles, and the strict rules prohibiting the capitalization of most internally generated assets. Module Overview (IFA62–IFA64): This short but critical module explores the accounting treatment for Intangible Assets and Goodwill. We will examine how to properly value, record, and amortize specific intangibles like patents, copyrights, and trademarks. We will also dive into the calculations for acquiring Goodwill during a business combination and navigate the specific rules for testing these unique, non-physical assets for impairment.