Explore BrainMass

Problems in accounting for intangibles

Intangible assets have no physical form. Patents, copyrights, goodwill, and trademarks are some examples of intangible assets.

Consider the features of intangible assets and respond to the following:
Discuss the problems you may face while accounting for intangibles.

Please post a 3-6 sentence response to the attached document. Be sure to site any references.

Solution Preview

As the intangible assets have no physical form, it is difficult to find evidence for their existence and hence complicate their accounting too. Intangible assets are recorded as an asset in the balance sheet if future economic benefits can be expected to flow from these assets to the firm. However, it is not always easy to ...

Solution Summary

This solution discusses the problems that could occur while accounting for intangibles.