Wiley Not-for-Profit GAAP 2017

22Intangible Assets

1. Perspective and Issues
2. Concepts, Rules, and Examples
   1. Recording Intangible Assets
   2. Internally Developed Intangible Assets
   3. Determining the Useful Life of an Intangible Asset
   4. Amortization of Intangible Assets
   5. Internally Developed Intangibles
   6. Goodwill
   7. Recognition and Measurement of an Impairment Loss
   8. Zero or Negative Goodwill of Reporting Units
3. Disclosure Requirements

Perspective and Issues

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.

Under the accounting standards promulgated in FASB ASC 954-805, in certain circumstances not-for-profit organizations may record goodwill in conjunction with an acquisition. Accordingly, the accounting rules related to goodwill have been included in this chapter for use when goodwill is recorded related to an acquisition by a not-for-profit organization. The requirements for mergers and acquisitions relating to not-for-profit organizations are more fully described in Chapter 24.

Concepts, Rules, and Examples

The following discussion relates only to those intangible assets acquired by a not-for-profit organization in a transaction or transactions that are not business combinations. (Goodwill and intangible assets acquired in a merger, or acquisition are discussed later ...