imported>Doug Williamson |
imported>Doug Williamson |
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| 1. ''Accounting''.
| | Mergers and Acquisitions. |
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| For accounting purposes, intangible assets are ones that are considered to be long-term assets but are intangible in nature, such as the value of patents and goodwill generated by the business.
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| The principles for including this kind of intangible asset in an accounting balance sheet are that the asset must:
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| 1. Have a cost that can be reliably measured; AND
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| 2. Be likely to give rise to future economic benefits.
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| The accounting term for including such an item in a balance sheet is 'recognising' the asset.
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| <span style="color:#4B0082">'''''Examples of recognising:'''''</span>
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| '''1. Orderbook'''
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| :Not recognised, because it does not have a cost that can be reliably measured.
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| '''2. Employees'''
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| :Not normally recognised, because there is not a cost that can be reliably measured.
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| :Exceptions include star footballers, that have been bought. The transfer fees and other costs paid are recognised as intangible assets.
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| '''3. Intellectual property'''
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| :If it has been bought, Yes.
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| :If it is internally generated, No.
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| Relevant accounting standards include IAS 38 and Sections 18 and 19 of FRS 102.
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| 2.
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| More broadly, any non-physical asset, whether it is a short-term asset or a longer-term one.
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| == See also == | | == See also == |
| * [[Amortise]] | | * [[Acquisition]] |
| * [[Assets]] | | * [[Merger]] |
| * [[Balance sheet]] | | * [[Reverse takeover]] |
| * [[Financial reporting]]
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| * [[Fixed assets]]
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| * [[Gearing]]
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| * [[Goodwill]]
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| * [[IAS 38]]
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| * [[FRS 102]]
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| * [[Intellectual property]]
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| * [[Net worth]]
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| * [[Patent]]
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| * [[Recognition]]
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| * [[Research & development]]
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| * [[Tangible asset]]
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| * [[Tangible net worth]]
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Corporate_finance]] |
| [[Category:The_business_context]]
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