Define patents and goodwill, which are both intangible assets. Explain how the accounting differs between a patent and goodwill. Patents and goodwill are both v assets. A patent provides the V right to make use of an invention or process for a of time, usually 20 years. Goodwill is the excess of cost of another company over the sum of the of its net asset. A patent has life, which may be measured, goodwill has life. A patent is amortized over Amortization is usually computed using the The amortization is recorded as: Debit Credit XX XX it is impaired. Impairment results when the recoverable amount for the goodwill is the carrying amount. IFRS requires that companies review the value of their goodwill V and write down The value of goodwill the value of the goodwill if it is V the carrying amount. The write down is recorded as: Debit Credit XX XX