Financial Reporting for Intangible Assets.

The Governmental Accounting Standards Board recently issued Statement No. 51, Accounting and Financial Reporting for Intangible Assets, which provides guidance regarding how to identify, account for and report intangible assets.

Statement 51 provides guidance that specifically addresses the unique nature of intangible assets, including:

* Requiring that an intangible asset be recognized in the statement of net assets only if it is considered identifiable;

* Establishing a specified-conditions approach to recognizing intangible assets that are internally generated;

* Providing guidance on recognizing internally generated computer software; and

* Establishing specific guidance for the amortization of intangible assets.

The requirements in Statement 51 are effective for financial statements for periods beginning after June 15, 2009.

Order a copy of Statement 51 (Product Code GS51) by calling (800) 748-0659 or visiting www.gasb.org.