Intangible Assets Categories
The Financial Accounting Standards Board (FASB), June 2001, Statement of Financial Accounting Standards No. 141, Business Combinations, requires business combinations be accounted for by the purchase method. Within FAS 141 are five categories of intangible assets separable from goodwill.
Note, with this FAS an assembled workforce is no longer recognized as an intangible asset category apart from goodwill.
Intangible assets
An intangible asset shall be recognized as an asset apart from goodwill if it arises from contractual or other legal rights (regardless of whether those rights are transferable or separable from the acquired entity or from other rights and obligations). If an intangible asset does not arise from contractual or other legal rights, it shall be recognized as an asset apart from goodwill only if it is separable, that is, it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented, or exchanged (regardless of whether there is an intent to do so).
Examples of Intangible Assets That Meet the Criteria for Recognition Apart from Goodwill
The following are examples of intangible assets that meet the criteria for recognition as an asset apart from goodwill.
Assets not displayed in italics are those that would be recognized apart from goodwill because they meet the contractual-legal criterion.
Assets displayed in italics do not arise from contractual or other legal rights, but shall nonetheless be recognized apart from goodwill because they meet the separability criterion.
Lists (advertising, customer, dealer, mailing, subscription, and so forth).a. Marketing-related intangible assets
- Trademarks, tradenames
- Service marks, collective marks, certification marks
- Trade dress (unique color, shape, or package design)
- Newspaper mastheads
- Internet domain names
- Noncompetition agreements
b. Customer-related intangible assets
- Customer lists
- Order or production backlog
- Customer contracts and related customer relationships
- Noncontractual customer relationships
c. Artistic-related intangible assets
- Plays, operas, ballets
- Books, magazines, newspapers, other literary works
- Musical works such as compositions, song lyrics, advertising jingles
- Pictures, photographs
- Video and audiovisual material, including motion pictures, music videos, television programs
d. Contract-based intangible assets
- Licensing, royalty, standstill agreements
- Advertising, construction, management, service or supply contracts
- Lease agreements
- Construction permits
- Franchise agreements
- Operating and broadcast rights
- Use rights such as drilling, water, air, mineral, timber cutting, and route authorities
- Servicing contracts such as mortgage servicing contracts
- Employment contracts
e. Technology-based intangible assets
- Patented technology
- Computer software and mask works
- Unpatented technology
- Databases, including title plants
- Trade secrets, such as secret formulas, processes, recipes
Statement of Financial Accounting Standards No. 141 (PDF)
See The Financial Accounting Standards Board (FASB) September 1999