Editing Intangible asset (section)

=== Expense allocation ===

Intangible assets are typically expensed according to their respective life expectancy.<ref name=":0" /><ref name=IAS38 /> Intangible assets have either an identifiable or an indefinite useful life. Intangible assets with identifiable useful lives are [[Amortization (accounting)|amortized]] on a straight-line basis over their economic or legal life,<ref>For international legal lives by class of intangible asset, see the table in [http://www.taxamortisation.com/tax-amortisation-benefit.html Tax amortization lives of intangible assets]</ref> whichever is shorter. Examples of intangible assets with identifiable useful lives are copyrights and patents. Intangible assets with indefinite useful lives are reassessed each year for impairment. If an impairment has occurred, then a loss must be recognized. An impairment [[Income statement|loss]] is determined by subtracting the asset's fair value from the asset's book/carrying value. Trademarks and goodwill are examples of intangible assets with indefinite useful lives. Goodwill has to be tested for impairment rather than amortized. If impaired, goodwill is reduced and loss is recognized in the Income statement.