Courses : Intermediate Macroeconomics Lecturer : Frischa Adellia Semester : 4th Semester, 2022/2023 Sesion INTANGIBLE ASSETS Intangible assets are types of assets that are intangible or cannot be seen physically but have economic value that can be utilized by the company. Some examples of intangible assets include patents, trademarks, copyrights, licenses, goodwill, and software. Recognition of intangible assets in the company's financial statements is carried out at acquisition cost or cost basis, namely the costs incurred by the company to acquire or develop these assets. Acquisition costs include costs directly related to the acquisition of assets, such as development costs, creation costs, and patent or trademark registration fees. Once an intangible asset has been recognized in the company's financial statements, the asset must be reassessed every accounting period to determine whether there is any indication of impairment. Impairment in the value of intangible assets occurs when the carrying value of the asset exceeds the value of the expected benefits or the market value of the asset. In the event of an impairment in the value of an intangible asset, the company must recognize a loss (impairment loss) in the income statement and reduce the carrying amount of the asset in the statement of financial position. Impairment in the value of intangible assets can occur due to regulatory changes, technological changes, increasingly fierce business competition, and other factors that can affect the useful value of these assets. When intangible assets are sold or no longer used by the company, the company must remove these assets from the statement of financial position. The write-off is carried out by reducing the carrying amount of the asset and recognizing the loss on disposal in the income statement. In addition, companies must also pay attention to legal aspects in recognizing intangible assets. Some intangible assets, such as patents, trademarks and copyrights, must be registered with the relevant agency and updated regularly. Companies must also ensure that the use of assets does not violate the intellectual property rights of others. In conclusion, the recognition and management of intangible assets is an important aspect of corporate accounting. Companies must recognize intangible assets at cost, reassess the value of assets each accounting period, and write off assets that are no longer being utilized. In addition, companies must also pay attention to legal aspects related to the use of intangible assets. Companies also need to consider several factors in assessing the value of intangible assets. Some of these factors include: 1. Benefit value: Companies must consider the value of benefits resulting from the use of intangible assets in the future. 2. Benefit period: Companies must consider the expected time period to benefit from the use of intangible assets. 3. Competition (competition): Companies must consider the existing business competition and the possible effect on the value of intangible assets. 4. Risk (risk): The company must consider the business risks that might affect the value of benefits from intangible assets. 5. Replacement cost: Companies must consider the cost of replacing intangible assets if they are damaged or unusable. 6. Market value: Companies must consider the market value of intangible assets if there is a sale and purchase transaction made in the market. In assessing the value of intangible assets, companies can use the fair value method or the historical cost method. The fair value method is used if the company acquired the asset through the acquisition of another company or if the value of the asset is easily measured through the market. Meanwhile, the historical cost method is used if the value of the asset is difficult to measure through the market. In recognizing intangible assets, companies must ensure that these assets meet the recognition criteria set out in financial accounting standards. Some of the criteria for recognizing intangible assets include the possibility that future economic benefits will be received by the company, the acquisition cost can be measured reliably, and the acquisition of assets is not dependent on coincidence or uncertainty. In conclusion, the recognition and valuation of intangible assets is important in corporate accounting. Companies must pay attention to the factors that affect the value of intangible assets and choose the right valuation method. In addition, companies must also ensure that intangible assets meet the recognition criteria set out in financial accounting standards. Recognition and valuation of intangible assets is important in a company's financial statements. Companies must properly recognize and evaluate intangible assets to ensure that their financial statements reflect the actual financial position and performance of the company. Errors in the recognition and valuation of intangible assets can cause a company's financial statements to be inaccurate and can pose reputational, legal and financial risks to the company. In addition, companies must pay attention to changes in the value of intangible assets from time to time and update the valuation of intangible assets according to changes in the company's business conditions. This will ensure that the value of intangible assets recorded in the company's financial statements reflects the true value of these assets. In recognizing and valuing intangible assets, companies must also pay attention to the applicable accounting standards. Accounting standards provide guidance regarding the criteria for recognizing and valuing intangible assets and the methods of measurement. Companies must ensure that the recognition and valuation of intangible assets is carried out in accordance with the applicable accounting standards. In the face of rapid business development and technological change, the recognition and valuation of intangible assets is becoming increasingly important. Companies must ensure that the recognition and valuation of intangible assets is carried out appropriately and accurately in order to reflect the true value of intangible assets and provide relevant information for users of the company's financial statements.