CPA Exam LabFAR
Section 2: 30–40%2F

Intangible Assets

Intangibles are non-physical assets with economic value: patents, trademarks, goodwill, customer lists. The exam focuses on which intangibles are capitalized vs. expensed, the amortization rules (finite vs. indefinite life), and goodwill impairment testing.

What AICPA Wants You to Know

  • 1Distinguish identifiable intangibles from goodwill
  • 2Apply finite-life and indefinite-life amortization rules
  • 3Calculate goodwill in a business combination and perform goodwill impairment testing
  • 4Expense research and development costs correctly under ASC 730
  • 5Apply the rules for internally generated intangibles (mostly expensed)