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MODULE 16 PACKET
AE 15 and ELEC 1 – INTERMEDIATE ACCOUNTING
MODULE 16 INTANGIBLE ASSETS

Welcome to Module 16
In this module, we will learn the criteria in defining an intangible asset and how it is accounted for. At the
end of this module, you will be answering multiple choice questions and straight problems.

CONSULTATION HOURS:
Virtual time: During your class schedule (either Monday or Tuesday)
Phone or Messenger: Every Thursday from 8am to 11am and 1pm to 4pm

MODULE 16 LEARNING OBJECTIVES:

By the end of this module, the students will be able to:
1. Know the initial and subsequent measurement of intangible assets
2. Understand the amortization and impairment of intangible assets
3. Know the proper treatment of research and development costs

COURSE CONTENT FOR MODULE 16:

ACTIVITY DESCRIPTION TIME TO COMPLETE

Lecture Discussion Intangible Assets 1.5 hours

Assigned Reading Research and Development Costs 1 hour

ACTIVITY 16 Problem Solving and Discussions 2 hours

Summative quiz for module 14 (to be

Quiz 1.5 hours
announced)

Answers to ACTIVITY 16 will be due on NEO LMS

, 2020 thru Google Classroom or
Facebook Group. Correct answers will be posted thereafter for your reference.

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LECTURE DISCUSSIONS

3 Essential Criteria for

Intangible Asset:

Identifiability

Control

Future economic
benefits

An asset is identifiable if it is separable, and arises from contractual or other legal rights.
Control is the power of the entity to obtain the future economic benefits flowing from the intangible
asset and prevent others from enjoying the same benefits. Market share, customer loyalty cannot
be recognized as an intangible asset since the entity cannot control the actions of customers.
Future economic benefits may include revenue from sale of products or services, cost savings or
other benefits resulting from the use of the asset by the entity like the use of intellectual property.

An intangible asset shall be recognized if it is probable that future economic benefits attributable to the
asset will flow to the entity and the cost can be measured reliably. Judgment based on external evidence
is used to determine the degree of certainty of the future economic benefits.

Items that cannot be identified separately from the cost of developing the business are not recognized as
intangible assets. Such are components of internally generated goodwill and shall be expensed when
incurred.

An expenditure on an item that does not meet the recognition criteria for an intangible asset shall be
expensed when incurred. Examples include:
a. Start up costs which consist of organization costs (legal and secretarial costs in establishing the
legal entity), preopening costs and preoperating costs.
b. Training costs
c. Advertising and promotional costs
d. Business relocation or reorganization costs
e. Internally generated brands, mastheads, publishing titles, customer lists and items of similar nature

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The cost of an intangible asset depends on how it is acquired:

Separate Acquisition Cost can be measured reliably and comprises of PURCHASE PRICE, import
duties and nonrefundable purchase taxes, and any expenditure needed to
directly prepare it for its intended use (ex. costs of employee benefits,
professional fees and cost of testing in bringing the asset to its working
condition)
Business Combination Cost is based on the FAIR VALUE ON the date of acquisition
Government Grant Use FAIR VALUE or NOMINAL AMOUNT OR ZERO, plus any expenditure
directly attributable to preparing the asset for its intended use (ex. airport land
rights, licenses to operate radio or television stations, import
licenses/quotas/rights to access restricted resources)
Exchange FAIR VALUE of asset given up PLUS CASH PAYMENT
IF the exchange lacks commercial substance, the CARRYING AMOUNT of the
asset given up PLUS CASH PAYMENT.
Self-Creation Cost of internally generated asset comprises of all directly attributable costs to
create, produce and prepare the asset to be capable of operating it in the
manner intended by management. (ex. materials and services used or
consumed in generating the asset, employee benefits from the generation of the
asset, fees to register a legal right, and amortization of patents and licenses
used to generate the intangible asset)

16.1 Identifiable Intangible Assets

Assets acquired through purchase wherein a legal right is transferred

Assets that could be sold, transferred, licensed, rented or sold separately

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Intangible assets can be classified either as having a definite life (patent, copyright, franchise with fixed
term, computer software, customer list and license) or an indefinite life (goodwill, trademark and perpetual
franchise). If finite, the useful life may be expressed in terms of years or number of units to be produced.
If there is no foreseeable limit to the period over which the asset is expected to generate net cash flows,
the useful life is indefinite. There are no legal, contractual, competitive and other factors that would limit
the useful life of the intangible.

Factors affecting useful life:

a. Technical, psychological, commercial or other type of obsolescence
b. Expected action by competitors or potential competitors
c. Expected usage of the asset by the entity
d. Typical product life cycle for the asset
e. Stability of the industry in which the asset operates
f. Level of maintenance expenditure required to obtain the expected future economic benefits from
the asset
g. The useful life of the asset may be dependent on the useful life of other assets of the entity
h. Period of control over the asset and legal or similar limits on the use of the asset, such as expiry
dates of related leases

Measurement after recognition

An entity shall choose either the cost model or revaluation model as an accounting policy.

1. cost model - an intangible asset shall be carried at cost, less any accumulated amortization and any
accumulated impairment loss

2. revaluation model - an intangible assets shall be carried at revalued amount, less any subsequent
amortization and any subsequent accumulated impairment loss .
revalued amount = fair value at the date of revaluation determined by reference to an active market

Amortization and impairment of intangible assets

An intangible asset can only be carried at revalued amount if there is an active market for the asset.

Intangible assets with finite useful life are tested for impairment whenever there is an indication of
impairment at the end of the reporting period.

Intangible assets with indefinite life are not amortized but are tested for impairment at least annually and
whenever there is an indication that they may be impaired.

Impairment loss occurs when recoverable amount is less than the carrying amount.

The recoverable amount of the intangible asset is the higher between fair value less cost of disposal and
value in use.

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Amortization is the systematic and allocation of the amortizable amount = cost of intangible asset
of an intangible asset over the useful life. less residual value

Entry: Although the intangible asset account is credited

Amortization Expense XXX directly for amortization, an accumulated amortization
Intangible Asset XXX may be maintained.

The method of amortization shall reflect the pattern in which the future economic benefits from the asset
are expected to be consumed by the entity. If such pattern cannot be determined reliably, the straight-line
method of amortization shall be used.

The residual value of an intangible asset shall be presumed to be zero, except:

when a third party is committed to buy the intangible asset at the end of the useful life
when there is an active market for the intangible asset so that the expected residual value can be
measured and it is probable that there will be a market for the asset at the end of the useful life.

A change in the residual value is accounted for as a change in accounting estimate. The residual value of
an intangible asset may increase to an amount equal to or greater than the carrying amount.

The amortization method and the useful life of an intangible asset should be reviewed at each financial
year-end.

If the expected useful life of the intangible asset is significantly different from previous estimate,
amortization period shall be changed accordingly.

If there has been a significant change in the expected pattern of economic benefits, the amortization
method shall be changed to reflect the new pattern.

Such changes shall be accounted for as changes in accounting estimates and shall be treated currently
and prospectively.

Intangible assets shall be derecognized or eliminated from the statement of financial position on disposal
of the asset or when no future economic benefits are expected from use and disposal of asset.

Gain and loss from the derecognition = net disposal proceeds - carrying amount of asset

16.2 Goodwill

Developed goodwill or internal goodwill is generated internally because of good name, well-trained
workforce, better retail locations, superior products, or excellent senior managers – the value of which is
recognized only when a significant portion of the business is purchased by another company. This
“homegrown” goodwillI is not recorded and shall not be recognized as an asset.

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Why would ABC Company pay P10M for assets with a fair value of only P9M? The extra P1M represents
goodwill.

Purchased goodwill arises when a business is purchased. It is one paid for by people wishing to set up a
business by buying an existing one. The company does not only pay for the net tangible and identifiable
intangible assets but also the goodwill of the business. Purchased goodwill is recognized as an asset.

Goodwill is measured by comparing the PURCHASE PRICE for the entity with the FAIR VALUE of the net
tangible and identifiable assets ( total assets excluding goodwill less liabilities assumed). This is known
as the “residual approach”.

Under the “direct approach”, goodwill is measured and the basis of the future earnings of the entity. an
attempt is made to value the anticipated excess earnings which are the essential component of goodwill. If
future earnings exceed normal earnings, the excess indicates there is an unidentifiable intangible asset --
GOODWILL -- that is causing the excess earnings.

This approach requires the following information:

a. a normal rate of return for representative entities in the industry. The normal rate of return is that
rate of return which usually attracts investors in a particular industry.
b. the fair value of tangible assets and any identifiable intangible assets.
c. the estimated future normal earnings of the entity
d. the probable duration of any excess earnings attributable to goodwill

Normal rate is applied to total assets

less goodwill less liabilities.

METHOD 1
Purchase of average excess earnings
Excess earnings 45,500
Goodwill (45,500 x # of years)
In this case it is only for 1 year,
METHOD 2
hence goodwill = excess earnings

METHOD 3
Capitalization of Average Earnings
Average earnings 50,000
Divide by Capitalization % 20%
Net assets including GW 250,000
- Net assets excluding GW 45,000
Goodwill 205,000

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Goodwill shall be tested for impairment at least annually and whenever there is an indication that it may
be impaired. An impairment loss recognized for goodwill shall not be reversed in a subsequent period.

If the purchase price or consideration transferred for the entity is less than the net fair value of the
identifiable assets acquired and liabilities assumed, the difference is negative goodwill which is recognized
as “ gain on bargain purchase”.

16.3 Patent

A patent is an exclusive right granted by the government to an inventor enabling him to control the
manufacture, sale or other use of invention for a specified period of time.

Legal life is 20 years; cannot be renewed but the life can be extended beyond a legal life by a new patent
for improvements and changes.

Under US GAAP, a patent is classified as technology-based intangible asset.

If the patent is acquired by purchase, the cost comprises of purchase price, import duties, nonrefundable
purchase taxes, and any directly attributable cost of preparing the asset for the intended use.

If the patent is internally developed, the cost normally includes the licensing and other related legal fees in
securing the patent rights. All related research and development costs should be expensed as incurred.

From the time of technological feasibility, any additional development cost to develop the patent to full
manufacturing stage may be capitalized as a patent cost or separately accounted for as development
cost. This is because the patent is now technically and commercially feasible.

The capitalized development cost is recognized as intangible asset and amortized over the useful life of
the patent.

Legal fees and other costs of successfully prosecuting or defending a patent shall be expensed. Such is
intended to maintain only rather than increase or enhance the future benefits from the asset. If the litigation
is unsuccessful, the legal costs and the remaining cost of the patent shall be written off as a loss.

1. Rules on amortization of patent:

2. Internally developed patent - original cost shall be amortized over the legal or useful life, whichever
is shorter
3. Acquired patent - Cost shall be amortized over the remaining legal or useful life, whichever is
shorter
4. Competitive patent acquired to protect an original patent - the cost of the competitive patent shall
be amortized over the remaining life of the old patent
5. Related patent acquired to extend the life of the old patent - cost of related patent and any
unamortized cost of the old patent shall be amortized over the extended life

If there is no extension of life, the new patent shall be amortized over its own life, and the cost of the old
patent is to be amortized over the remainder of its life.

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Jan 2019: An entity developed a patent at Research& Development Exp 250,000

P250,000 spending P140,000 for the licensing of Cash 250,000
the patent. It will be useful for its entire legal life of
Patent 140,000
20 years Cash 140,000
Dec 2019: Record the amortization of the patent Amortization of patent 7,000
(140,000/20yrs) Patent 7,000
Dec 2020: Record the amortization of the patent Amortization of patent 7,000
Patent 7,000
Dec 2021: The entity paid P160,000 to attorneys Legal expenses 160,000
for the services in connection with a successful Cash 160,000
defense of the patent
Dec 2021: Record the amortization of the patent Amortization of patent 7,000
Patent 7,000
Jan 2022: Purchased a competing patent for Patent 170,000
P170,000 to protect the original patent. It has 18 Cash 170,000
years to run from date of acquisition
Dec 2022: Record the amortization of the patent Amortization of patent 17,000
Original patent 7,000 Patent 17,000
Competing / 17 yrs remaining life of original 10,000 Other
Dec 2022: The product covered by the patent was Patent written off expense 272,000
withdrawn from sale as per government order Patent 272,000

Impairment of patent

Since a patent is an intangible asset with finite useful life, the cost is amortized. The patent should be
tested for impairment whenever there is an indication of impairment at the end of the reporting period.

Jan 2019: An entity acquired a patent at Patent 1,800,000

P1,800,000 with a useful life of 10 years and Cash 1,800,000
remaining legal life of 12 years.
Dec 2019: Record the amortization of the patent Amortization of patent 180,000
(1,800,000/10yrs) Patent 180,000
Dec 2019: There is an indication that the patent Carrying amount, 12/19 (1.8M – 180,000) 1,620,000
may be impaired. The patent is expected to PV of cash flows OR value in use
generate cash flows of P200,000 per year for the (200,000 x 6) 1,200,000
remaining useful life 9 years. The PV of an Impairment Loss 420,000
ordinary annuity of 1 for 9 periods at 9% is 6. The
patent has no determinable fair value less cost of Impairment Loss 420,000
disposal Patent 420,000

Dec 2020: Record the amortization of the patent Amortization of patent 133,333
(1,200,000/9yrs) Patent 133,333

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16.4 Trademark

A trademark is a symbol, sign, slogan or name used to mark a product to distinguish it from other products.
The terms trademark, trade name and brand name are interchangeably used.

In US GAAP, trademark is a market- related intangible asset.

When a trademark is purchased, the cost includes the purchase price plus costs directly attributable to the
acquisition.

When it is internally developed, the cost includes expenditures required to establish it, including filing fees,
registry fees and other expenses incurred in securing the trademark such as design cost.

If the trademark is successfully prosecuted or defended, the litigation cost is an outright expense because
enhance
this is to maintain rather than in hands the future economic benefits from the asset.

Legal life is 10 years and may be renewed for periods of 10 years each.

The almost automatic renewal of a trademark makes it classifiable as an intangible asset with an indefinite
useful life.

The cost of a trademark is not amortized but subject to test for impairment at least annually and whenever
there is an indication that it may be impaired.

An entity acquired trademark for P2,000,000 with a Trademark 2,000,000

remaining legal life of 8 years. Cash 2,000,000
It is anticipated that the trademark would be routinely Impairment loss 500,000
renewed In the future. Cash 500,000
2,000,000
No amortization is required for trademark, it must be tested
for impairment annually. Carrying amount 2,000,000
The trademark is expected to generate cash flows of PV of cash flows OR value in use
P150,000 per year. The appropriate discount rate is 10%. (150,000 / 10%) 1,500,000
Impairment Loss 500,000

16.5 Copyright

Copyright is an exclusive right granted by the government to the author, composer or artist enabling the
grantee to publish, sell or otherwise benefit from the literary, musical or artistic work.

Under US GAAP, a copyright is considered an artistic related intangible asset.

The cost assigned to copyright consists of all expenses incurred in the production of the work including
those required to establish or obtain the right.

When a copyright is purchased, the cost includes the cash paid plus directly attributable cost necessary
for the intended use.

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The cost of the copyright shall be amortized over the useful life, the period in which benefits, sales and
royalties are expected. It is often difficult to estimate the number of years in which benefits will be received.

It is usually advisable to write off the cost of the copyright against the revenue of the first printing.

Under the Intellectual Property Code of the Philippines, the term of protection for copyright is during the
life of the author and 50 years after death.

The copyright should be reviewed for impairment by assessing at the end of each reporting period whether
there is an indication that it may be impaired.

16.6 Franchise

Under a franchise agreement, one party called the franchisor grants certain rights to another party called
the franchisee.

Under US GAAP, a franchise is a contract-based intangible asset. The franchise agreement may be
between the government and a private entity or individual OR between private entities or individuals.

Use of public water for interisland shipping Franchisee acquires the right to use the
Use of public land for telephone & electric lines trademark, patent and process of the franchisor ,
Use of streets and highways for a bus line sell a particular brand (Jollibee, McDo, Sony)

The cost of the franchise includes the lump sum payment for the acquisition of the franchise plus directly
attributable costs necessary for the intended use, such as legal fees and expenses incurred in connection
with the acquisition of the right.

The lump sum payment is known as the initial franchise fee and therefore the initial cost of the franchise.

If the franchise agreement requires the franchisee to make periodic payment to the franchisor, such
payment is considered as outright expense. This payment is known as the periodic franchise fee.

If the franchise is granted for a definite period, the cost of franchise shall be amortized over the useful life
or definite period whichever is shorter.

A definite franchise is tested for impairment at the end of reporting period when there is an indication that
it may be impaired.

If the franchise is granted indefinitely or perpetually, the cost of the franchise shall not be amortized but
tested for impairment at least annually.

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Periodic Franchise Fee

The franchisee pays the franchisor a periodic fee of 5% Franchise fee expense 200,000
on the gross sales of the franchisee each year. If the Cash 200,000
franchisee realized gross sales of P4,000,000 for the
current year, the periodic franchise fee is P200,000

Initial Franchise Fee

An entity purchased a franchise from Jollibee to sell Franchise 4,000,000

Jollibee products for P4,000,000 for 20 years. The initial Cash 500,000
franchise fee is payable in cash, P500,000, when the Notes payable 3,500,000
contract is signed and the balance in 5 equal installments
every year end evidenced by 10% promissory note, The Note payable 700,000
agreement provided the franchisor will assist in the Interest Expense 350,000
location of site for the building and provide training of Cash 1,050,000
management and employees. Jollibee has already (3.5M x 10%)
performed substantially all the services required under Amortization of Franchise 200,000
the contract Franchise 200,000
(4M / 20yrs)

16.7 Lease Right

Under the new lease standard, a lessee is required to initially recognize a right of use asset for the lease
term and a lease liability for the obligation to make lease payments.

The right of use asset is presented as a separate line item in the statement of financial position.

Leasehold Improvement is alteration or modification on the leased property made by the lessee classified
as property, plant and equipment of the lessee. It is not included in the cost of right of use asset but
accounted for separately. Example: building, walk, pavement, landscaping, driveway and other structure
made on a leased land, and lighting installations, repairs, partitions, cabinets, shelves and ventilating
system made on a leased building prior to occupancy.

Legally, leasehold improvement reverts to the lessor upon termination of the lease contract.

Leasehold improvement shall be depreciated over the lease term or useful life of the improvement,
whichever is shorter.

The residual value of the leasehold improvement shall be ignored in computing depreciation because
legally the improvement becomes the property of the lessor upon termination of the lease.

A renewal option that is too uncertain should be ignored in determining the lease term. But where the
renewal of the lease contract is highly probable or certain, the extension is considered in determining the
extended lease term.

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16.8 Broadcasting

With Indefinite Useful Life

Broadcasting license is renewable every 10 years if the entity provides at least an average level of service
to the customers and complies with relevant legislative requirements.

The license may be renewed indefinitely at little cost. The entity intends to renew the license indefinitely
and evidence supports its ability to do so.

The broadcasting license should be treated as having an indefinite useful life because it is expected to
contribute to the net cash inflows indefinitely. It should not be amortized but tested for impairment annually
and whenever there is an indication that it may be impaired.

With Definite Useful Life

A broadcasting license that previously has a useful life will no longer be indefinite if the licensing authority
has decided that it will no longer renew broadcasting license but rather will auction the license.

Such license should be amortized over its remaining useful life and immediately tested for impairment.

16.9 Airline right

An entity has acquired a route authority or an airline right that may be renewed every 5 years. The
acquiring entity intends to comply with the applicable rules and regulations surrounding renewal.

Route authority renewals are routinely granted at a minimal cost and historically, route authority has been
renewed when the airline has complied with the applicable rules and regulations.

In this case, the airline right should be regarded as having an indefinite useful life because the entity
expects to provide service indefinitely. It should not be amortized but tested for impairment annually and
whenever there is an indication that it may be impaired.

16.10 Customer List

A customer list is a customer database containing the name, contract information, order history and other
vital and social statistics, such as birth, death and even sickness.

Internally generated customer list shall not be recognized as an intangible asset. An acquired customer
list may be recognized as an intangible asset and amortized over the useful life.

The customer list should also be reviewed for impairment by assessing at the end of each reporting period
whether there is an indication that it may be impaired.

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The recognition of an acquired customer list as intangible asset may be subject to question or debate since
purchase of the list does not provide control by an entity over the expected future benefits since the
customers cannot be forced to buy from the entity.

16.11 Organization Cost

The term organization cost represents cost incurred in forming or organizing a corporation.
a. Legal fees in connection with the incorporation, such as drafting of articles of incorporation and by-
laws and corporate registration
b. Incorporation fees
c. Share issuance cost, such as printing of share certificates, cost of stock and transfer book, seal of
the corporation, underwriting and promotion fees, and accounting and legal fees in connection with
issuance.

PAS 38 provides that start up costs which include legal and secretarial costs in establishing a legal entity
shall be recognized as expense when incurred.

Accordingly, organization cost shall be expensed immediately. Share issuance costs shall be debited to
the share premium account arising therefrom. If the share premium is not sufficient to absorb such costs,
the excess shall be debited to “share issuance costs” account to be presented as “contra equity” or as a
deduction from other share premium then from retained earnings.

16.12 Web site development cost

A web site that has been developed for the purpose of promoting and advertising an entity’s products and
services does not meet the requirement to be recognized as an intangible asset, and shall be expensed
as incurred.

16.13 Research and Development Cost

An entity classifies the generation of the asset into a research phase and a development phase. If an
entity cannot distinguish the research phase from the development phase, the entity treats the expenditure
as if it were incurred in the research phase only.

Research is original and planned investigation undertaken with the prospect of gaining scientific or
technical knowledge and understanding.

A research activity is undertaken to discover new knowledge that will be useful in developing new product
or that will result in significant improvement of existing product.

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Examples of research activities:

a. Laboratory research aimed at obtaining or discovering new knowledge
b. Searching for application of research finding and other knowledge
c. Conceptual formulation and design of possible product or process alternative
d. Testing in search for product or process alternative

Expenditure on research or on the research phase of an internal project shall be recognized as

expense when incurred because it cannot be certain that future economic benefits would probably flow
to the entity. At the research stage, there is too much uncertainty about the likely success of the project.

Development is the application of research findings to a plan or design for the production of new or
substantially improved materials, devices, products, processes, systems, or services, before the start of
commercial production or use. It involves the application of research findings to develop a new product.

Examples:
design, construct, and testing of preproduction prototype and model
design of tools, jigs, molds and dies involving new technology
design, construction and operation of a pilot plant that is not of a scale economically feasible to the
entity for commercial production
design, construction and testing of a chosen alternative for new or improved product or processes

In contrast with research cost, development cost is incurred at a later stage in a project and the probability
of success is more apparent. Hence, it may or may not be recognized as an intangible asset based on
all of the following criteria:
1. the technical feasibility of completing the intangible asset so that it will be available for use or sale
(production of prototype or model)
2. intention to complete the intangible asset and use and sell it
3. ability to use or sell the intangible asset
4. how probable future economic benefit are generated
5. the ability of resources or funding to complete development and to use or sell the asset
6. ability to measure reliably the expenditure attributable to the intangible asset during the development

Research and development activities typically occur prior to the beginning of commercial production and
distribution of a product or process. Activities that relate to commercial production do not result to R&D
costs.

Examples of activities not considered R&D:

Engineering follow through in an early phase of commercial production
Quality control during commercial production including routine testing
Troubleshooting breakdown during production
Routine ongoing effort to refine, enrich or improve quality of an existing product
Adaptation of an existing capability to a particular requirement or customer need
Periodic design changes to existing products
Routine design of tools, jigs, molds and dies
Activity, including design and construction engineering related to construction, relocation,
rearrangement or start-up of facilities and equipment

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Costs incurred in creating a computer software product shall be charged to expense when incurred until a
technical feasibility has been established for the product. All costs during the research stage shall be
expensed outright due to uncertainty about future economic benefits.

Technological feasibility is established when an entity has produced either a detailed program design of
the software or a working model. after technological feasibility has been established, capitalized software
costs include the cost of coding and testing and the cost to produce the product masters.

The costs incurred to actually produce the software from masters and package the software for sale are
considered inventory.

The amortization method for a computer software shall reflect the pattern in which the future economic
benefits are expected to be consumed by the entity. If such pattern cannot be determined reliably, the
straight line method is used.

Since the computer software is an intangible asset with finite useful life, the cost is amortized at the end of
reporting period over the useful life. However, it should be tested for impairment whenever there is an
indication of impairment at the end of reporting period.

Computer software programs may be developed by a company, patented, and then sold to customers for
use on their computers. Productivity software like Microsoft Office® is an example. The cost of acquiring
and developing computer software programs is recorded as an intangible asset, even if it is stored on a
physical device like a computer. However, computer software that is integral to machinery – for instance,
software that is necessary to control a piece of production equipment – is included as the cost of the
equipment and classified as Property, Plant and Eequipment. Otherwise, it is classified as an intangible
asset.

2020-2021 Module Packets for AE 15 and ELEC 1 (Intermediate Accounting) | College of Commerce |
University of San Agustin, Iloilo City, 5000, Philippines Page 15 of 16
 COLLEGE OF COMMERCE
BACHELOR OF SCIENCE IN ACCOUNTANCY

MODULE 17 PACKET
AE 15 and ELEC 1 – INTERMEDIATE ACCOUNTING
MODULE 17 SUMMARY OF NONCURRENT ASSETS

Welcome to Module 17
In this module, we will revisit the noncurrent assets in the modules: accounting for property, plant and
equipment and intangible assets. At the end of this module, a thorough understanding of accounting for
noncurrent assets will be achieved.

CONSULTATION HOURS:
Virtual time: During your class schedule (either Monday or Tuesday)
Phone or Messenger: Every Thursday from 8am to 11am and 1pm to 4pm

COURSE CONTENT FOR MODULE 17:

ACTIVITY DESCRIPTION TIME TO COMPLETE

Video Presentation Property, Plant and Equipment 3 hours

Activity Problem Solving and Discussion 3 hours

Property, Plant and Equipment

https://www.youtube.com/watch?v=VgP1kakxmB4
There are four different videos in this link all about depreciation:
https://courses.lumenlearning.com/vccs-acc211-17sp/chapter/methods-for-computing-depreciation/

Revaluation and Asset Impairment

https://www.youtube.com/watch?v=WkxuPxe6BLU&t=73s
https://www.youtube.com/watch?v=lWMDdtHF4ZU
https://www.youtube.com/watch?v=vJD9Pmdag8E

Intangible Assets
https://www.youtube.com/watch?v=DzR1HBfRDjg

Research and Development Costs

https://www.youtube.com/watch?v=_4aQUCsruxY
https://www.youtube.com/watch?v=KHyZsNZsFj8

2020-2021 Module Packets for AE 15 and ELEC 1 (Intermediate Accounting) | College of Commerce |
University of San Agustin, Iloilo City, 5000, Philippines Page 16 of 16