Section 2: 30–40%2F
Intangible Assets
Exam insight
Intangibles testing leans hard on R&D, specifically what gets expensed versus capitalized. The distinction people mix up: software development costs are capitalized only after technological feasibility, while R&D is always expensed. Also remember that internally generated goodwill is never capitalized; only purchased goodwill lands 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)
Patterns in this topic
The exam re-skins the same archetypes. Recognize these here, then drill them in the Pattern Lab.
Exam tip
Study smarter: before you expand each card, cover the screen and try to recall what the concept means from its title alone. Retrieving it from memory builds the recall the exam actually tests, and it beats re-reading.