Management and Organizational Studies 3360A/B Chapter Notes - Chapter 12: Book Value, Intangible Asset

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3360A/B
• Professor: Danny Morrison

Document Summary

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 nonmonetary assets that lack physical existence and have a high degree of uncertainty concerning future benefits. Purchased intangibles: cost includes selling price and any costs associated with bringing it to work, but costs for marketing and such are not capitalized (same as for ppe) Borrowing costs - can be capitalized if directly attributable to the asset and incurred during the acquisition, construction or development stage. Prepayments - recognized as an asset only when an entity pays for goods before their delivery. Different types of intangibles include: marketing, customer related, artistic related, contract based, technology based. Derecognition - an intangible asset is derecognized when it is disposed of or is no longer expected to generate future economic benefits and the gain or loss is recognized in income.