Trademarks

Code: 1233
👁 Views: 109

Account Information

Financial Statement Statement of Financial Position
Normal Balance Debit

Definition

Value of registered trademarks owned by the company

Common Journal Entries

Registered trademark

Dr. Trademarks
Cr. Bank Account

Recorded trademark amortization

Dr. Amortization Expense
Cr. Accumulated Amortization Trademarks

Sold trademark at a gain

Dr. Bank Account
Cr. Trademarks
Cr. Gain on Sale

Written off trademark

Dr. Write-off Expense
Cr. Trademarks

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 38 Intangible Assets
US GAAP ASC 350 Intangibles - Goodwill and Other

❓ Frequently Asked Questions

Q: Are trademarks amortized?

A: If they have a finite life (e.g., a 10-year usage contract), they are amortized. If they have an indefinite life (e.g., a strong renewable trademark), they are not amortized but tested for impairment annually.

Q: Can internally developed trademarks be capitalized?

A: No, internally generated brands, customer lists, and similar items cannot be capitalized because their cost cannot be distinguished from the cost of developing the entity as a whole.