Your client, a French pharmaceutical manufacturer, is about to release a blockbuster new drug that inhibits the

Question:

Your client, a French pharmaceutical manufacturer, is about to release a blockbuster new drug that inhibits the growth of certain tumors. While auditing this company, you happened to overhear research scientists openly discussing with marketing personnel this drug's benefits and anticipated sales revenues. You are aware that this pharmaceutical manufacturer carefully guards this information from competitors as well as the general public.
Based on the information you overheard, you believe that pharmaceutical patents held by an unrelated United States client will now become worthless. Under generally accepted accounting principles, must be recorded at "lower of cost or market" when an impairment of value occurs. Should you consider the impact of this new French drug in valuing the patents of your United States client?
Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...