RSM219H1 Chapter Notes - Chapter 8: Intangible Asset, Fuselage, Book Value
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RSM219H1 Full Course Notes
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Document Summary
Companies purchase these assets to generate revenue over multiple future periods. Serve as the location for the sale of goods. Be the tools that enable companies to provide services. Include trademarks, patents, copyrights, licenses, franchise rights, customer lists. Must be separately identifiable from other assets -- can be resold, licensed, or rented. Cannot be separated from the business and sold. Represents the expected future economic benefits that will arise. Premium/excess paid by one business when acquiring another related to factors such as management, expertise, corporate reputation, customer loyalty. Age of these assets & be able to anticipate when future outflows of cash will be required to replace them. Need to know implications the assets will have on future costs by understanding depreciation & amortization policies. Want to know if there have been any significant negative changes in the expected use of the asset. Determine the extent to which company"s long-term assets have been pledged as security to creditors.
