List 3 common intangible assets. How is the life determined that is to be used to compute amortization?
List 3 common intangible assets. How is the life determined that is to be used to compute amortization?
Three common intangible assets are :
1. Goodwill: It is the premium amount that is valued based on the company's recognition in the industry and image it has over minds of people, its brand value and customer loyalty that it has achieved.
2. Intellectual property: They arise from creative minds of people behind the business. They are brand logos, trademarks, business ideas, copyrights. They carry more value than fixed assets and add great value to the business.
3. Reasearch and Development: The process which is carried out to gain strategical advantage to the business in terms of both ideas and technologies. They certainly help in boosing the performance of any business.
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