MGEB12H3 Lecture Notes - Intangible Asset, Current Liability, Cash Flow
6 May 2014
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Learning goals: be able to measure & present intangible assets, be able to measure & present goodwill. Nature of intangibles: these assets have no physical existence and are non- monetary, provide economic benefits over a period of years, normally classified as long term assets. Learning goal 1: be able to measure & present intangible. Learning goal 2: be able to measure & present goodwill. Goodwill is only recorded when an entire business entity is purchased, because goodwill is a going concern valuation and cannot be separated from the business as a whole. Excess of purchase price over fair market value of identifiable net assets. Impairment test done when there is a change in circumstances. As the recently appointed auditor for daleara corporation, you have been asked to examine selected accounts before the six-month financial statements of june 30, 2014, are prepared. Daleara corporation mentions that only one account is kept for intangible assets.
