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> Intangible Asset Recognition?
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Canadian_Man
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#1
Apr 11 2017 10:24pm
A brand or a customer list cannot be recognized while it is development, since it's not separable as it's developed.
So what are your entries?
Here's my thoughts:
While in development
DR expense
CR cash or accounts payable or whatever used
Once completed and separable
DR intangible asset _____
CR gain on completion of asset
??? I have no idea. Let's say you're Costco and you decided to create a new sub-brand for pop. You decide at some point you want to sell that brand. At what point do you recognize the brand itself as an intangible asset on the balance sheet? In the case of something like McDonalds, how do they value their brand on franchising it out?
This post was edited by Canadian_Man on Apr 11 2017 10:25pm
Canadian_Man
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#2
Apr 11 2017 11:35pm
Also, how does something that would be PPE fit on the balance sheet if you're holding it for 1 period or less? (ex. a truck, or a building)? Do you still treat it with the same rules as PPE, but recognize it separately on the balance sheet?
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