Intangible Assets

The reporting of intangible assets has grown in significance in recent years because of the prevalence and

success of technology and electronics companies. For the most part, intangible assets provide a company with a right to use an idea, invention, artistic creation, or the like. Copyrights, patents, and trademarks are common examples. They are recorded at historical cost which is then amortized to expense over the shorter of the legal life or the useful life of the intangible. The accounting resembles that of property and equipment so that, for example, increases in value are not reported. The Balance Sheet Reporting of Intangible Assets