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Discussion 1.
Explain the difference between artistic-related intangible assets and contract-related intangible assets.
Intangible assets provide future benefits to the owner and lack physical substance. They have a useful life for more than one year. Artistic-related intangible assets are related to the rights of artistic works such as plays, photographs, motion pictures, musical and literary works, etc. Ownership of these works are protected by a copyright. The legal life of a copyright is for the life of the creator plus 70 years. The useful life of the copyright is generally shorter than the legal life.
A contract-related intangible asset is the value of rights that come from a contractural relationship. For example, a franchise arrangement. The franchisor allows the franchisee the right to use trademarks, names, processes, etc. to sell good or services like McDonald's, FedEx, etc.
Discussion 2.
There are many factors. But there are some specific factors that should probably always be considered. The authors do an excellent job presenting the factors that Disney uses in determining useful life.
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