Unformatted text preview: et provided it was acquired for valuable consideration.
Historical cost is the only valuation method used. Revaluation of historical cost is not
practiced or allowed.
Intangible assets such as patents, licenses, trademarks and other rights and assets may be
capitalized if they are acquired for valuable consideration or are created by the company.
However, a 1990 ASB proposal (ED 52) would considerably restrict the capitalization of
certain intangible assets. SSAP 22 requires that on the acquisition of a company, intangible
assets should be separately identified from purchased goodwill.
Development costs may be capitalized, provided that specific conditions are met (clearly
defined project, costs separately identifiable, etc). Research costs must be expensed as
Purchased goodwill may also be capitalized and treated as other intangible assets.
Intangible assets arise from capitalized expenditures that are considered to provide future
benefits. In rare instances advertising expenses are capitalized. Purchased goodwill can be
capitalized subject to permission from the co...
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This note was uploaded on 05/02/2013 for the course ECONOMIC economics taught by Professor Economics during the Fall '13 term at Elmont Memorial High School.
- Fall '13
- The Land