Techniques to be used to estimate the fair values of intangible assets include:
A)estimating the costs the entity avoids by owning the assets
B)discounting estimated future net cash flows from the assets
C)both A and B
D)none of the above

Question

Quizplus · Accepted Answer

To estimate the fair value of intangible assets, it is important to consider both the costs avoided by the entity as a result of owning the assets as well as the estimated future net cash flows generated by the assets. Therefore, both option A (estimating the costs the entity avoids by owning the assets) and option B (discounting estimated future net cash flows from the assets) should be used.

Techniques to Be Used to Estimate the Fair Values of Intangible