MGMT 20000 Chapter 7: Chapter 7, MGMT 200
25 Jan 2019
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Tangible assets land, land improvements, buildings, equipment, and natural resources. Intangible assets patents, trademarks, copyrights, franchises, and goodwill (difference is lack of physical substance). We record long-term assets as, cost + expenditures to get asset. Most valuable intangible assets for many companies is trademark and brand. Develop intangible assets internally, like developing new product. Don"t record ads cost as a part of cost of the intangible asset. Instead, it expenses the ads costs in income statement ! Copyrights exclusive right of protection by u. s copyright office to the creator of published work like, sons, film, painting, photo, book or computer software. Trademarks is a work, slogan or symbol that identifies a company, product or service. Franchise exclusive right to use a franchisor company"s name and sell products within specified geo area. Goodwill when one company acquires another company (purchase amount - fair value) Capitalize expenditure if it increases future benefit (more extensive repairs, such as new installation)
