Intangible assets: These are assets without physical substance that have economic value. There are two general classes of intangible assets, finite life assets, and indefinite life. The indefinite life intangible asset includes goodwill along with other intangible assets such as trademarks and renewable licenses. The amount of goodwill to be recorded on the date of acquisition.
Intangible assets: These are assets without physical substance that have economic value. There are two general classes of intangible assets, finite life assets, and indefinite life. The indefinite life intangible asset includes goodwill along with other intangible assets such as trademarks and renewable licenses. The amount of goodwill to be recorded on the date of acquisition.
Definition Definition Intangible asset that includes proprietary or intellectual property and brand value of a firm. Goodwill is recorded in the books when a firm purchases another firm and the purchase price is more than the fair value of net identifiable assets of the acquired business. The amount of goodwill is recorded on the asset side of the balance sheet (statement of financial position).
Chapter 11, Problem 11.25E
a.
To determine
Concept Introduction:
Intangible assets: These are assets without physical substance that have economic value. There are two general classes of intangible assets, finite life assets, and indefinite life. The indefinite life intangible asset includes goodwill along with other intangible assets such as trademarks and renewable licenses.
The amount of goodwill to be recorded on the date of acquisition.
b.
To determine
Intangible assets: These are assets without physical substance that have economic value. There are two general classes of intangible assets, finite life assets, and indefinite life. The indefinite life intangible asset includes goodwill along with other intangible assets such as trademarks and renewable licenses.
The way goodwill is accounted for after the date of acquisition.