Karten 11 Karten
Lernende 1 Lernende
Sprache English
Stufe Universität
Erstellt / Aktualisiert 22.04.2020 / 24.04.2020
Lizenzierung Keine Angabe
0 Exakte Antworten 11 Text Antworten 0 Multiple Choice Antworten
Fenster schliessen

What different types of assets exist?


--> fixed

--> current



--> identifiable & separable

--> unidentifiable & inseperable

Fenster schliessen

intangible Assets

  • An extremely important accounting topic

  • Went through many changes in the past 20 years

  • Still many disagreements among different accounting regimes

  • Goodwill remains a major difference between Swiss GAAP FER, IFRS, and US GAAP

  • May see more changes in the future

Fenster schliessen

What are intangible assets? (other than goodwill)

  • Lack physical substance, non-monetary in nature (not financial assets)

  • Arise from contractual or other legal rights (most intangibles in business combinations meet the contractual-legal criterion).

  • Is capable of being sold or otherwise separated from the acquired enterprise

  • Financial reporting only shows acquired intangibles, very rarely internally-generated intangibles (except some software)

Fenster schliessen

What are different types of intangible assets (other than goodwill) ?

  • Marketing-related: trademarks, trade names, newspaper mastheads, internet domain names, etc.

  • Customer-related: customer lists, customer orders or contracts, customer relationships, etc.

  • Artistic-related: plays, operas, ballets, books, magazines, newspapers, musical works, pictures, videos, etc.

  • Contract-based: license, royalty, contracts, franchise, construction permits, etc.

  • Technology-based: patents, computer software, databases, etc.

Fenster schliessen


  • Regarded as a kind of intangible asset

  • Unidentifiable and inseparable from other assets

  • Can never be internally generated!!!

  • Only arises during business combination

  • The amount equals the excess of consideration transferred over the sum of fair values of all other net identifiable assets

  • Typically captures synergy, market power, etc.

Fenster schliessen

Reporting of intangible assets: what are the steps.

1. before M&A?

2.during M&A?

3. after M&A?

During regular business (before M&A):

  • Internally-generated intangibles are mostly expensed, rarely reported as assets

During M&A:

  • Will be recorded and reported at fair market value

  • If fair value is attributed to identifiable assets, record as the identified asset; if not, record as goodwill

After M&A:

  • Intangibles recorded during M&A will be amortized (if with finite life) and tested for impairment

  • New intangibles will be expensed as incurred.

Fenster schliessen

Goodwill- IFRS?

• Goodwill is allocated to cash-generating units – at a level much lower than an operating segment.

• Goodwill subsequent to acquisition is required to be tested for impairment, rather than to be amortized.

• Goodwill is reduced for any excess carrying value, down to zero, and then other assets are reduced pro-rata.

• Goodwill impairment cannot be reversed.

Fenster schliessen

Goodwill - US GAAP?

• Goodwill is allocated to reporting units, usually operating segments, expected to benefit from it.

• Goodwill subsequent to acquisition is required to be tested for impairment, rather than to be amortized.

• If the carrying amount of goodwill is more than its implied value, an impairment loss is recognized.

• Goodwill impairment cannot be reversed.