ACC 110 Chapter Notes - Chapter 8: Intangible Asset, Capital Asset, Book Value
1 Dec 2011
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Capital assets: resources that contribute to earning revenue over more then one period by helping an entity produce, supple, support or make available the goods or services it offers to its customer. Capital assets are not bought and sold in the ordinary course of business. Tangible assets used to produce or supply goods or service to customers or used for administrative purpose. An intangible asset that arises when one business acquires another and pays more than the fair value of the net assets purchased. Land, building, equipment, vehicles, computer, furniture and fixtures, money spent to find and develop natural resources. Patents, copyrights, trademarks, brand names, computer software, customer lists, broadcast rights, licences, Goodwill = purchased price fair value of identifiable asset and liabilities purchased. Tangible asset: a capital asset with physical form/substance such as land, building, equipment, etc. Intangible asset: a capital asset that does not have physical form/substances. Capital asset valuation and ways to increase capital asset:
