The world possesses two main accounting systems: United States Generally Accepted Accounting Principles (U.S. GAAP) and International Generally Accepted Accounting Principles (iGAAP). As the acronym simply states, US GAAP are the guiding principles for the United States and iGAAP are principles used by other countries internationally. Across both systems are similarities in language, procedures and reporting but some of the differences are so major that it keeps a consistent debate on which system is more appropriate for accounting purposes. The reporting of intangible assets is one such area where they are some similarities in using the guidelines of iGAAP or U.S. GAAP but they also have some significant differences between the two with respect to accounting for intangible assets. The system differences are so major that it quite constantly rises up debates. "It is unlikely that this debate will cease since the fair value accounting practices are endorsed both by the Financial Accounting Standard Board (FASB) and International Accounting Standard Board (IASB)." (Uzma, 2001 pg. 28-38) Intangible assets are considered to be corporate intellectual property which includes patents, copyrights, trademarks, trade names, franchise licenses, government licenses and goodwill. The main characteristics of intangible assets are that they are not of physical existence and they are not monetary instruments, but they are classified as long-term assets and provide long-term benefits. Intangible assets are presented in the balance sheet as value holding and/or cash generating patents, trademarks, licenses, copyrights, etc. Certain companies in certain industries such as music, drug and consumer products industries find it vitally important to report intangible assets. There are four major similarities in U.S. GAAP and iGAAP in accounting for