IMFM

[IMFM]

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Thank you, KajalDighe!

[IMFM]

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Hi Zee,

Gotcha. Glad I have some confirmation that Goodwill is an intangible asset.

Maybe it was an error…

Thank you!

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This statement was found when I was doing my practice questions in my CFA Resource Portal.

I can’t attach the screenshot. So I just copy and paste as per below.

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Question:

After reading the financial statements and footnotes of a company that follows IFRS, an analyst identified the following intangible assets:

• product patent expiring in 40 years;
• copyright with no expiration date; and
• goodwill acquired 2 years ago in a business combination.

Which of these assets is an intangible asset with a finite useful life?

	Product Patent		Copyright		Goodwill
A	Yes		Yes		No
B	Yes		No		No
C	No		Yes		Yes

Solution
B is correct. A product patent with a defined expiration date is an intangible asset with a finite useful life. A copyright with no expiration date is an intangible asset with an indefinite useful life. Goodwill is no longer considered an intangible asset under IFRS and is considered to have an indefinite useful life.

Long-Lived Assets Learning Outcome

2. Compare the financial reporting of the following types of intangible assets: purchased, internally developed, acquired in a business combination

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