The balance sheet carrying value for internally generated intangibles is often below the value of the property rights.

Question

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The carrying value of internally generated intangibles is usually lower than the value of their property rights. This is because internally generated intangibles are based on estimates and assumptions that may not be accurate or reliable, while property rights are more tangible and easier to value. As a result, companies often record internally generated intangibles at a lower value on their balance sheet to reflect the uncertainty and risk involved in these assets.

The Balance Sheet Carrying Value for Internally Generated Intangibles Is