ADMS 3585 Chapter Notes - Chapter 12: Intangible Asset, Deferral, Software

• School: York University
• Department: Administrative Studies
• Course: ADMS 3585
• Professor: Professor Alcalde

Document Summary

If purchase 100% of another business fv given up by acquiring entity is allocated to assets/liabilities it receives: goodwill = fv of consideration transferred to acquire business less. Illustration 12-1 p. 694: characteristics of intangible assets. Intangible assets nonmonetary assets that lack physical substance: must have 3 characteristics. Intangible assets lack physical substance: sometimes confusing, ex. computer software, is it the physical computer providing assets or is it the intangible software, generally. If intangible component is needed for physical component to work, treated as ppe. If intangible is not integral part of physical object intangible. Intangible assets are nonmonetary: do not contain any right or claim to cash/monetary amount, asset/long term loans are not intangibles they provide claim to cash; they are monetary assets. Intangible assets usually provide economic benefits over period of years: selling g/s / reduction in future cost/ etc, normally classified as long term assets (copyright/licensing/trademark/patents/secret formula/software)