Sunday, June 28, 2009

Intangible assets

Intangible assets are those assets of the company that are not physical or that cannot be touched. The accounting for intangible assets is very similar to that for PPE in many forms, for examples:
- initial recording of the item
- amortization of intangible asset equivalent to depreciation of tangible assets
- adjusting the value of the asset to recognize any permanent decreases in its value

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