INTANGIBLE ASSETS AND INVESTMENT

APB Opinion No. 17 requires that costs assigned to intangible assets not reflect any costs of developing, maintaining, or restoring such intangibles subsequent to their acquisition by a firm. Further, costs assigned to identifiable intangibles may not be merged with or replaced by amounts relating to other identifiable intangibles or goodwill. With respect to assets acquired from other firms, APB Opinion No. 17 requires that intangible assets that can be separately identified at the time of acquisition be assigned a portion of the total cost of the acquired enterprise if the fair values of those assets can be reliably determined.

APB Opinion No. 17 requires that the cost of any intangible asset acquired subsequent to 30 October 1970 be amortized over the shorter period of (1) the estimated useful life of the intangible asset, or (2) 40 years. Firms are required to continually evaluate the period of amortization to de

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no recordable value until it is sold, and that when it is sold it reflects goodwill that is neither amortizable nor tax deductible.8 Many firms contend, however, that brands have a current and intangible value.9 Other industries with significant interests in the general debate over accounting for intangibles and goodwill include mail order, retailing, banking, software, broadcasting, and  6J. Murphy, "Assessing the Value of Brands," Long Range Planning, 23 (June 1990): 23. 7J. M. Laderman, "Goodwill Is Making A Lot of People Angry," Business Week, 31 July 1989, 73. 8G. Foster, "There's No Accounting for Brands," Management Today, October 1989, 90. 9"Valuation Lobby Gathers Momentum," Accountancy, 105 (May 1990): 7.advertising, to name but a few. Their interests range from the value of customer mailing lists to the value of governmental licenses and franchises to the value of deposit intangibles such as banking services. BIBLIOGRAPHY Corry, J. C. "Accounting Aspects of Takeovers." Management Accounting, 72 (September 1990): 4751. Foster, G. "There's No Accounting for Brands." Management Today, October 1989, 9092, 94, 9697. Gomes, G. M., and Morgan, J. F. "Unfair Just Compensation: Reforming Eminent
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Approximate Word count = 1658
Approximate Pages = 7 (250 words per page)

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