(1) I want to disagree with this. After looking through FAS142, it seems there is distinction between finite and infinite intangibles for GAAP, as such:
"Opinion 17 presumed that goodwill and all other intangible assets were wasting assets (that
is, finite lived), and thus the amounts assigned to them should be amortized in determining
net income; Opinion 17 also mandated an arbitrary ceiling of 40 years for that amortization.
This Statement does not presume that those assets are wasting assets. Instead, goodwill and
intangible assets that have indefinite useful lives will not be amortized but rather will be
tested at least annually for impairment
. Intangible assets that have finite useful lives will
continue to be amortized over their useful lives, but without the constraint of an arbitrary
Infinite-lived Intangibles include more than just Goodwill though, it also includes trademarks, licenses, rights, etc. I imagine this could be somewhat material to certain types of companies.
(2) Thanks! I tend to forget that there are tax experts that should be in charge of these things in deals.