How Do Intangible Assets Affect Financial Statements?

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Solution

Since intangible assets are long term assets they must be recorded in the financial statement every time, but this is not the case.

As per accounting standards, the financial statements should not include any internally generated assets, instead they should include only those intangible assets that are acquired( either through acquisition or purchase) by the business.

Also read:

MCQs on Goodwill

Intangible Assets

Tangible Assets

Difference Between Assets and Liabilities

Methods of Valuation of Goodwill

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