8615     INTANGIBLES 
(Revised 3/96)

Intangibles are property which lack physical substance but give valuable rights to the owner. Account for capitalized Intangibles in General Ledger Account Number 2410. Examples of intangible property include patents, copyrights, leases, and electronic data processing (EDP) software. Software are those instructions by which EDP equipment is directed to process information. By contrast, hardware consists of tangible equipment (e.g., computer, printer, terminal, etc.). Capitalization requirements for intangibles are prescribed in SAM Section 8615.1.

Intangible property will be recorded at cost.  Intangible property will be capitalized if all of the requirements set forth in SAM Section 8615.1 are met. Cost includes all amounts incurred to acquire and to ready the intangible asset for its intended use. Typical intangible property costs include the purchase price, legal fees, and other costs incurred to obtain title to the asset.