Analysis of Long-Term AssetsLocked: included in All Access

How intangible assets are recorded depending on whether they are bought, built in-house or acquired with a whole business, what capitalising rather than expensing does to the statements and ratios, how impairments, reversals and disposals hit profit and the balance sheet under IFRS and US GAAP, and how to read long-lived asset disclosures to estimate asset age and reinvestment needs.

1. 1. Intangible assets: definition, purchase and business combinationsAn intangible asset is recorded at what was paid for it when it is bought on its own or with a whole company, and whatever part of a takeover price cannot be pinned to identifiable assets becomes goodwill.Locked: included in All Access13 min
2. 2. Internally developed intangibles and capitalising versus expensingBuilding an intangible in-house is mostly expensed while buying one is capitalised, and that choice moves profit, assets, operating cash flow and many ratios.Video · 7 minLocked: included in All Access14 min
3. 3. Impairment of PPE and intangiblesAn asset is impaired when its carrying amount is more than can be recovered from it; IFRS tests and measures in one step against the recoverable amount, while US GAAP first checks undiscounted cash flows and then writes down to fair value.Video · 7 minLocked: included in All Access14 min
4. 4. Assets held for sale and impairment reversalsAn asset the company has decided to sell is written down to fair value less costs to sell and no longer depreciated, and whether a past impairment can be reversed depends on the framework and on whether the asset is held for use or for sale.Locked: included in All Access12 min
5. 5. Derecognition: sale, abandonment, exchange and spin-offWhen a long-lived asset leaves the balance sheet, the gain or loss is what the company receives minus the asset's carrying amount at that date.Video · 6 minLocked: included in All Access13 min
6. 6. Disclosures for PPE and intangible assetsThe notes on PPE, intangibles and impairments tell an analyst what the company owns, how it measures and depreciates it, what was written down and why, and how sensitive those values are to management's assumptions.Locked: included in All Access13 min
7. 7. Fixed asset turnover, asset age and reinvestmentDividing the PPE note's cost, accumulated depreciation and net amounts by annual depreciation estimates how long assets last, how old they are and how soon they need replacing.Video · 7 minLocked: included in All Access15 min