Chap 10-ic

Chap 10-ic - condition for its intended use This includes...

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AC 303 IC 10-14 pg 500 Comparison of Operational Asset Valuation in the Netherlands to the United States When dealing with international markets, or examining companies in different countries it is important to realize the standards and rules that the company is following. The importance of knowing these differences can be shown when comparing Heineken’s asset valuation in the Netherlands to asset valuation in the United States. Goodwill is calculated the same way in both countries, by determining the difference between the purchase price and the net asset value. For the U.S., Goodwill will appear as an asset in the balance sheet only when it was purchased in connection with the acquisition of another company. However, in the Netherlands it is amortized, subject to a maximum of 20 years. In the United States, Goodwill is not amortized. In the United States, for intangible assets such as patents, copyrights, trademarks, the acquisition costs include all expenditures necessary to get the asset in the location and
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Unformatted text preview: condition for its intended use. This includes purchase price, legal fees, and filing fees; however, research and development is not included. Patents last for 20 years, copyrights last for the life of the author plus an additional 70 years, and trademarks are purchased for 10 year renewable periods. This is compared to the Netherlands where the costs of the internally developed brands, patents, and licenses and research and development are all expensed. Also in the Netherlands, other intangible fixed assets are capitalized and amortized by the straight line method over 3 years. Fixed Assets in the Netherlands are stated at replacement cost less accumulated depreciation, and in the United States, Assets are valued on basis of their original costs, and inventory following both the conservative principle and the lower cost or market....
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