FAR — Quick Sheet
Intangible Assets & Goodwill
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- Finite-lived intangibles: amortize; test for impairment only if indicators exist
- Indefinite-lived intangibles & goodwill: don't amortize; test at least annually
- US GAAP: R&D expensed as incurred (IFRS capitalizes development costs post-feasibility)
- Software: pre-technological-feasibility costs = expense; post-feasibility, pre-release = capitalize
- Goodwill impairment = carrying value − fair value of reporting unit, capped at goodwill allocated to that unit