INTANGIBLE ASSETS

Intangible assets are those assets that provide an organization with future economic benefits but have no physical substance. Examples of intangible assets include patents, copyrights, and goodwill. FASB ASC 350 provides guidance for the way organizations account for goodwill and other intangible assets. FASB ASC 360-10 provides the accounting for impairment of identifiable intangible assets. If an intangible asset has an indefinite life and is not being amortized, it should be tested for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test consists of a comparison of the fair value of the intangible asset with its carrying amount. If the carrying amount exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Generally accepted accounting principles (GAAP) provides specific guidance about capitalizing costs of internally developed intangible assets.