OPINIONS OF THE ACCOUNTING PRINCIPLES BOARD
Intangible Assets
CONTENTS Paragraph
Numbers
Summary 1-9
Problem 1-3
Scope and Effect of Opinion 4-8
Conclusions 9
Background 10-23
Bases of Classification 10
Present Accounting 11-14
Accounting for Costs at Acquisition 11
Accounting for Deferred Costs After Acquisition .. . 12-13
Criticism of Present Practice 14
Appraisal of Alternative Procedures 15-23
Cost of Intangible Assets 15
Treatment of Costs 16-20
Arguments for nonamortization 18-20
Accounting on the Historical-Cost Basis 21-22
A Practical Solution 23
Opinion 24-32
Acquisition of Intangible Assets 24-26
Cost of intangible assets 25-26
Amortization of Intangible Assets 27-31
Method of amortization 30
Subsequent review of amortization 31
Disposal of Goodwill 32
Effective Date 33-35
Issued by the Accounting Principles Board of the American Institute of Certified Public Accountants
COPYRIGHT 1970 BY THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS, INC. 666 FIFTH AVENUE, NEW YORK, NEW YORK 10019
AUGUST 1970
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