Perspective and Issues

Concepts, Rules, and Examples

Recording Intangible Assets

Internally Developed Intangible Assets

Determining the Useful Life of an Intangible Asset

Amortization of Intangible Assets

Internally Developed Intangibles


Recognition and Measurement of an Impairment Loss

Zero or Negative Goodwill of Reporting Units

Disclosure Requirements


Intangible assets are those assets that provide an organization with future economic benefits but have no physical substance. Examples of intangible assets include patents, copyrights, and goodwill. FASB ASC 350 provides guidance for the way organizations account for goodwill and other intangible assets.

Under the accounting standards promulgated in FASB ASC 954-805, in certain circumstances not-for-profit organizations may record goodwill in conjunction with an acquisition. Accordingly, the accounting rules related to goodwill have been included in this chapter for use when goodwill is recorded related to an acquisition by a not-for-profit organization. The requirements for mergers and acquisitions relating to not-for-profit organizations are more fully described in Chapter 24.


The following discussion relates only to those intangible assets acquired by a not-for-profit organization in a transaction or transactions that are not business combinations. (Goodwill and intangible assets acquired in a merger, or acquisition are discussed later in this ...

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