Section 2: 30–40%2F
Intangible Assets
Intangibles testing is heavily focused on R&D — specifically what gets expensed vs. capitalized. The AICPA trap: software development costs are capitalized ONLY after technological feasibility, but R&D is always expensed. Candidates mix these up constantly. Also know that internally generated goodwill is never capitalized — only purchased goodwill goes on the balance sheet.
What AICPA Wants You to Know
- 1Distinguish identifiable intangibles from goodwill
- 2Apply finite-life and indefinite-life amortization rules
- 3Calculate goodwill in a business combination and perform goodwill impairment testing
- 4Expense research and development costs correctly under ASC 730
- 5Apply the rules for internally generated intangibles (mostly expensed)