Accounting for Intangibles and Research and Development Costs

Author: Pat Patterson

Intangible assets and research and development (R&D) activities continue to represent some of the most complex areas of U.S. GAAP due to evolving business models, increasing innovation, and frequent changes in valuation, impairment, and disclosure expectations. This course provides a clear, practitioner‑focused overview of accounting principles for intangible assets—including goodwill, internally developed software, acquired intangibles, and other identifiable non‑physical assets—as well as R&D cost recognition, presentation, and reporting.

Participants will learn how to apply current GAAP to initial recognition, subsequent measurement, amortization, impairment testing, and derecognition of intangibles, as well as understand emerging issues affecting internally developed technology and software development costs. Guidance related to goodwill, private‑company alternatives, impairment models, and updated R&D reporting requirements will be explained in depth. This course equips accounting and finance professionals with the technical foundation and practical tools needed to navigate these high‑judgment areas effectively.

Publication Date: March 2026

Designed For
This course is designed for professionals involved in financial reporting, valuation, or oversight of intangible assets and R&D activities.

Topics Covered

• Overview of intangible assets under U.S. GAAP
• Initial recognition, measurement, and impairment of intangible assets
• Goodwill accounting, impairment testing, and private‑company alternatives
• Amortization requirements and factors influencing useful lives
• Impairment testing for finite‑lived vs. indefinite‑lived intangibles
• Updated goodwill impairment guidance and practical considerations
• R&D cost recognition and differentiation between research and development activities
• Accounting for internally developed and purchased software
• Emerging issues and timely developments in intangible and R&D accounting

Learning Objectives

• Apply U.S. GAAP requirements for recognizing, measuring, amortizing, and derecognizing intangible assets
• Identify accounting requirements for goodwill, including impairment testing and private‑company alternatives
• Evaluate when intangible assets should be tested for impairment and apply appropriate impairment models
• Distinguish between research, development, and software‑related costs and determine which costs must be capitalized or expensed
• Analyze accounting considerations for internally developed and purchased computer software
• Recognize emerging issues and trends related to intangible asset valuation and R&D reporting

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
General understanding of U.S. GAAP related to intangible assets and R&D costs

Advance Preparation
None