Intangible Assets

Sin+ 1=- a! a -,))- +(a)g ana0o)ti>- o3) ,i3 7a)!. -. Ca'itali>- a! an intangibl a!!t ana0o)ti>- o3) a ')io- not to 2+- "# 7a)!. 1&. Sta)t4' +o!t! in+l- o)gani>ational +o!t! !+( a! lgal an- !tat ,! in+))- to o)gani> a n* b!in!! ntit7. T(! +o!t! !(ol- b a. Ca'itali>- an- n3) a0o)ti>-. b. Ca'itali>- an- a0o)ti>- o3) $# 7a)!. +. Ca'itali>- an- a0o)ti>- o3) ; 7a)!. -. E2'n!- a! in+))-.

1=. 5(i+( !tat0nt i! +o))+t +on+)ning t( a0o)ti>ation o, an intangibl a!!t I. T( +o!t l!! )!i-al 3al o, an intangibl a!!t *it( a ,init !,l li, !(ol- b a0o)ti>- o3) t(at li, II. An intangibl a!!t *it( an in-,init !,l li, !(ol- not b a0o)ti>-. III. T( 0a2i00 a0o)ti>ation ')io- +annot 2+- t*nt7 7a)!. a. b. +. -.

I onl7 I an- II onl7 I an- III onl7 Nit() I II no) III

"#. A +on!i-)ation not )l3ant in -t)0ining t( !,l li, o, t( intangibl a!!t i! t( a. T( ')io- o, +ont)ol o3) t( a!!t anlgal o) !i0ila) li0it! on t( ! o, t( a!!t b. T+(ni+al t+(nologi+al +o00)+ial o) ot() t7'! o, ob!ol!+n+ +. E2'+t- a+tion! o, +o0'tito)! o) 'otntial +o0'tito)! -. Initial +o!t "1. T( )!i-al 3al o, an intangibl a!!t

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I! al*a7! 8al to >)o I! 8al to >)o nl!! a t(i)- 'a)t7 +o00it! to b7 t( a!!t at t( n- o, it! !,l li, an- t() i! an a+ti3 0a)9t ,o) t( a!!t I! 8al to >)o nl!! a t(i)- 'a)t7 +o00it! to b7 t( a!!t at t( n- o, it! !,l li, o) t() i! an a+ti3 0a)9t ,o) t( a!!t Ma7 b in+)a!- ,o) t( ')'o! o,  +o0'ting a0o)ti>ation a0ont

"". T( 0t(o- o, a0o)ti>ation !- ,o) an intangibl a!!t *it( a ,init li, a. S(ol- al*a7! b t( !t)aig(t4lin 0t(ob. N- not ),l+t t( 'att)n o, ! o, t( a!!t +. S(ol- b t( !t)aig(t4lin 0t(o- i, t( 'att)n o, ! +annot b -t)0in- )liabl7 -. S(ol- al*a7! b t( nit! o, ')o-+tion 0t(o"%. 5(i+( o, t( ,ollo*ing ,a+to)! !(ol- not b +on!i-)- in -t)0ining t( !,l li, o, an intangibl a!!t a. E,,+t! o, ob!ol!+n+ +(ang! in 0a)9t -0an- ,o) t( ')o-+t b. T( !al3ag 3al o, t( a!!t +. E2'+t- a+tion! o, +o0'tito)! an'otntial +o0'tito)! -. T( ')io- o, +ont)ol o3) t( a!!t anlgal o) !i0ila) li0it! on t( ! o, t( a!!t !+( a! 2'i)7 -at! o, )lat- la!! o) +ont)a+tal o) )glato)7 ')o3i!ion!. "$. oo-*ill 0a7 b )+o)-- *(n a. It i! i-nti,i- *it(in a +o0'an7. b. On +o0'an7 a+8i)! anot() in a b!in!! +o0bination. +. T( ,ai) 3al o, a +o0'an7@! a!!t! 2+-! t(i) +o!t.

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A +o0'an7 )lation!.

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2+'tional

+!to0)

";. T( )a!on goo-*ill i! !o0ti0! ),))- to a! a 0a!t) 3alation a++ont i! b+a! a. It )')!nt! t( ')+(a! ')i+ o, a b!in!! t(at i! abot to b !ol-. b. It i! t( -i,,)n+ bt*n t( ,ai) 3al o,  t( nt i-nti,iabl a!!t! a! +o0'a)- *it( t( ')+(a! ')i+ o, t( a+8i)- b!in!!. +. T( 3al o, a b!in!! i! +o0't- *it(ot +on!i-)ation o, goo-*ill an- t(n goo-*ill i! a--- to a))i3 at a 0a!t) 3alation. -. It i! t( onl7 a++ont in t( ,inan+ial !tat0nt! t(at i! ba!- on 3al all ot() a++ont! a) )+o)-- at an a0ont ot() t(an t(i) 3al. "6. 5(i+( o, t( ,ollo*ing intangibl a!!t! !(olb !(o*n a! a !'a)at it0 on t( !tat0nt o,  ,inan+ial 'o!ition a. oo-*ill b. F)an+(i! +. Patnt -. T)a-0a)9 "- )!a)+( an- -3lo'0nt ')o:+t! an- !9! 7o) a-3i+ on t( a++)a+7 o, t( ,ollo*ing !tat0nt! 0a- b7 on o, it! !ta9(ol-)!. 5(i+( on i! t) a. Co!t! in+))- -)ing t( G)!a)+( '(a!  +an b +a'itali>b. Co!t! in+))- -)ing t( G-3lo'0nt '(a! +an b +a'itali>- i, +)it)ia !+( a!

Page 3 of 4 ToA.1611

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t+(ni+al ,a!ibilit7 o, t( ')o:+t bing !tabli!(- a) 0t T)aining +o!t! o, t+(ni+ian! !- in )!a)+( +an b +a'itali>!igning o, :ig! an- tool! 8ali,7 a! )!a)+( a+ti3iti!

1. 5(n an intangibl a!!t i! a+8i)- b7 an 2+(ang o, a!!t! *(i+( o, t( ,ollo*ing 0a!)! *ill n- to b +on!i-)- in t( -t)0ination o, t(at +o!t T( a. Fai) 3al o, t( a!!t gi3n '.

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b. Ca))7ing a0ont o, t( a!!t )+i3-. +. Initial +o!t o, t( a!!t gi3n '. -. R'la+0nt +o!t o, t( a!!t )+i3-. ". A b)an- na0 t(at *a! a+8i)- !'a)atl7 !(ol- initiall7 b )+ogni>- a++o)-ing to PAS%& Intangibl a!!t! at a. R+o3)abl a0ont b. Eit() +o!t o) ,ai) 3al at t( +(oi+ o, t( a+8i)) +. Fai) 3al -. Co!t %. On+ )+ogni>- intangibl a!!t! +an b +a))i- at a. Co!t l!! a++0lat- a0o)ti>ation b. Co!t l!! a++0lat- a0o)ti>ation an- l!! a++0lat- i0'ai)0nt lo!!! +. R3ala0ont l!! a++0lata0o)ti>ation -. Co!t 'l! a notional in+)a! in ,ai) 3al !in+ t( intangibl a!!t i! a+8i)$. A++o)-ing to PAS%& Intangibl a!!t! a0o)ti>ation o, an intangibl a!!t *it( a ,init !,l li, !(ol- +o00n+ *(n a. It i! ,i)!t )+ogni>- a! an a!!t b. it i! ')obabl t(at it *ill gn)at ,t) +ono0i+ bn,it! +. It i! a3ailabl ,o) ! -. T( +o!t! +an b i-nti,i- *it( )a!onabl +)taint7

1%. +. A) not !b:+t to an a0o)ti>ation +(a)g 1$. -. S(ol- not b a0o)ti>- in a ')io- in *(i+( 0aintnan+ o, t( a!!t o++)!. 1;. &. In )lation to t( a0o)ti!ation o, intangibl a!!t! t( gn)al )l in PAS %& Intangibles i! t(at nl!! -0on!t)at- ot()*i! a. T( )!i-al 3al -o! not nt) into t( -t)0ination o, t( a0o)ti!ation +(a)g. b. T( )!i-al n- no b )3i*- at t( no, a+( annal )'o)ting ')io-. +. All intangibl a!!t! (a3 a )!i-al 3al at la!t 8al to t( a0ont o, 0aintnan+ +o!t! in+))-. -. T( )!i-al 3al i! ')!0- to b >)o. 16. =. 5(i+( !tat0nt i! in+o))+t +on+)ning int)nall7 gn)at- intangibl a!!t a. To a!!!! *(t() an int)nall7 gn)atintangibl a!!t 0t! t( +)it)ia ,o) )+ognition an nt)')i! +la!!i,i! t( gn)ation o, t( a!!t into a )!a)+( '(a! an- a -3lo'0nt '(a!. b. T( +o!t o, an int)nall7 gn)at- a!!t +o0')i!! all 2'n-it) t(at +an b -i)+tl7 att)ibt- o) allo+at- on a )a!onabl an- +on!i!tnt ba!i! to +)ating ')o-+ing an- ')'a)ing t( a!!t ,o) it! intn-- !. +. Int)nall7 gn)at- b)an-! 0a!t(a-! 'bli!(ing titl! +!to0) li!t! an- it0! !i0ila) in !b!tan+ !(olnot b )+ogni>- a! intangibl a!!t!. -. Int)nall7 gn)at- goo-*ill 0a7 b )+ogni>- a! an intangibl a!!t. 1