SPECIFIC INTANGIBLE
PATENT TRADEMARK
ASSETS (SUMMARY)
Exclusive right granted by
the government to a
inventor enabling the
grantee to control the
manufacture, sale, or
other use of the invention
DEFINITION
for a specified period of
time.
20 years
LEGAL LIFE
Technology-based
OTHER TERMINOLOGY intangible asset
Amortize using legal life
or useful life, whichever is
AMORTIZATION (General) shorter.
Tested for impairment
whenever there is an
indication of impairment
IMPAIRMENT at the end of the
reporting period.
COPYRIGHT
It is a symbol, sign, slogan,
or name used to mark a
product to distinguish it from
other products.
10 years, renewable for
another 10 years. the
renewal is almost automatic,
thus considered indefinite.
Market-related intangible
asset
Since considered as
indefinite, trademark is not
amortized.
Tested for impairment
whenever there is an
indication of impairment at
the end of the reporting
period.
FRANCHISE
An exclusive right granted
by the government to the
author, composer, or
artist enabling the grantee
to publish, sell, or
otherwise benefit from the
literary, musical, or
artistic work.
Life of the author plus 50
years
Artistic-related intangible
asset
Useful life
Tested for impairment
whenever there is an
indication of impairment
at the end of the reporting
period.
LEASEHOLD/
LEASE RIGHTS
A business in which the Right acquired by
owners, or the lessee by virtue
“franchisors”. Sell the of a contract of lease
rights to their business to use the specific
logo, name, and model property owned by
to third party the lessor for a
operators, called definite period of
“franchisees”. time in consideration
for a certain sum of
money in the form of
rent
Based on the contract Based on contract of
of franchise lease
Contract-based None
intangible asset
Useful life or definite Life of the lease
period (period stated in
the contract),
whichever is shorter.
Tested for impairment No impairment
whenever there is an
indication of
impairment at the end
of the reporting period.