ACCT 1A Lecture Notes - Lecture 13: Intangible Asset, Canadian Intellectual Property Office, Software

• School: Irvine Valley College
• Department: Accounting
• Course: ACCT 1A
• Professor: urell

Document Summary

Intangibles include broadcast rights, publishing rights, trademarks, patents, Goodwill: licences, customer list, franchises and purchased research and development. Most frequently reported intangible asset is goodwill (cost in excess of net assets acquired) The term goodwill, as used by most business people, means the favourable reputation that a company has with its customers. Goodwill arises from factors such as customer confidence, reputation for good service and quality products, and financial standing. Ex: promising to deliver reliable transportation is goodwill that is internally generated and is not recorded as an asset. The only way to report goodwill as an asset is to purchase another business. For accounting purposes, goodwill is defined as the difference between the purchase price of a company as a whole and the fair market value of its net assets (all identifiable assets minus all identifiable liabilities) Purchase price fair market value of identifiable assets and.