Section 2: 30–40%2F
Intangible Assets
Exam insight
Intangibles testing leans hard on R&D, specifically, what gets expensed versus capitalized. The AICPA trap: software development costs are capitalized ONLY after technological feasibility, while R&D is always expensed. Candidates mix these up constantly. Also remember that internally generated goodwill is never capitalized, only purchased goodwill lands on the balance sheet.
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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)