COMM-3016EL Chapter Notes - Chapter 12: Intangible Asset, Deferral, The Assets
4 Apr 2018
School
Department
Course
Professor
Document Summary
The business importance and characteristics of goodwill & intangible assets. Goodwill an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Intangible assets identifiable non-monetary assets that lack physical substance. In order to recognize an intangible asset, it must meet each of the following 3 criteria: identifiability. An asset meets the identifiability criterion in the definition of an intangible asset when it: Is separable it can be separated or divided from the entity and sold, transferred, licensed, rented, or exchanged, either by itself or in combination with another contract, identifiable asset, or liability. Results from contractual or other legal rights this is regardless of whether those rights are transferable or separable from the entity or from other rights and obligations. In order to recognize these items as assets, the company has to be able to control access to the future benefits and restrict others" access.
