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- Owned by the university
- Expenditures for items not owned by the university are expensed.
- Lacks physical substance
- Assets with physical substance are recorded as tangible assets (personal property or real property).
- Capital leases lack physical substance but are accounted for as part of tangible assets.
- Non-financial in nature
- Assets in monetary form are recorded as cash or investments.
- Used primarily for operations and not used to directly obtain income or profit.
- Royalty agreements are not reported as intangible assets because they exist primarily to generate royalty income. Patents or copyrights underlying a royalty agreement are used primarily for operations and are therefore considered intangible assets.
- Assets obtained for resale are not used in operations and are therefore not recorded as intangible assets
- Separately identifiable
- Goodwill is not recorded as an intangible asset because goodwill is not a separately identifiable asset.
- An intangible component (right) of a tangible asset (e.g., rights associated with land ownership) is accounted as part of the tangible asset.
- Supported by a formal agreement
- An intangible asset is generally supported by a formal agreement that either allows PSU to sell, rent, or otherwise transfer the right to another party, or the agreement gives PSU certain contractual or other legal rights to tangible assets owned by other parties.
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Expenditures incurred subsequent to meeting the above criteria are capitalized.
For more information pertaining to intellectual property, please see Innovation and Intellectual Property.
For more information pertaining to accounting for intangible asses, please see the procedures manual.