[Verse 1] When a company buys assets you can't see or touch Patents, trademarks, goodwill and such They're called intangible, recorded on books At purchase price, that's how accounting looks But when created inside, the rules change fast Development costs might not always last [Chorus] Acquired goes on, developed goes off Remember the rule when accounting gets tough Capitalize bought, expense what you make That's the treatment that standards will take Intangible assets, recognition's the key Measurement matters for what you can't see [Verse 2] Research and development, here's what you do Research gets expensed, that much is true But development costs, if criteria's met Can be capitalized, don't forget Technical feasibility, intention to use Resources available, these are the clues [Chorus] Acquired goes on, developed goes off Remember the rule when accounting gets tough Capitalize bought, expense what you make That's the treatment that standards will take Intangible assets, recognition's the key Measurement matters for what you can't see [Bridge] Finite life gets amortized each year Indefinite life, impairment we fear Test it annually, write down if needed Fair value less than book, losses conceded [Verse 3] Goodwill's the premium paid above fair For synergies expected, handle with care Never amortized but tested each year If impaired, write it down, make losses clear Brand names developed inside stay off books But purchased ones get accounting looks [Chorus] Acquired goes on, developed goes off Remember the rule when accounting gets tough Capitalize bought, expense what you make That's the treatment that standards will take Intangible assets, recognition's the key Measurement matters for what you can't see [Outro] From patents to software, copyrights too Know the treatment for each that you'll view Acquired or internal, the source tells the tale Of how these assets hit income trail
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