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[FINANCIAL STATEMENT ANALYSIS] CHAP 2: BALANCE SHEET (3) LONG-LIVED…

- - - - Recorded at fair value at acquisition.
    - - Under IFRS: Research costs are expensed & Development costs are capitalized.
        
        Under GAAP: Both are expensed
        
        Development costs for a software for sale to others:
        
        IFRS: are expensed until technological feasibility has been established; Subsequent costs should be capitalized.
        
        GAAP: capitalized all development costs.
    - - Purchasing Price is recorded at fair value;
        
        Any remaining amount of the Purchasing Price is recorded as Goodwill (capitalized on BS)
- - - - Indefinite lives -> NOT amortized but are tested for impairment at lease annually (Trademark*, Goodwill, Franchise Agreement)
        
        Impairment loss is recognized when Carrying Amount > Fair Value