Initial Recognition and Measurement
Recording Intangible Assets
Purchased intangible assets are initially recorded at historical cost, including the purchase price and all directly attributable costs necessary to prepare the asset for its intended use. Internally generated goodwill is not recognized under U.S. GAAP.
Note
Only purchased intangible assets that meet recognition criteria are recorded as assets.
Summary
Most intangible assets are initially recognized at historical cost, while internally generated goodwill is not recorded.