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Unformatted text preview: thereto can be identified;
interest in the identifiable net
purchased (2) The technical feasibility of the product or process has
goodwill should be recorded
(3) The management of the enterprise has indicated its
in the balance sheet.
intention to produce and market or use the product or
(4) The future market for the product or process is clearly
defined, or, if it is to be used internally rather than sold,
its usefulness to the enterprise has been established; and
(5) Adequate resources exist, or are expected to be available,
to complete the project.
Intangible assets are recorded Intangible assets are recorded at cost, but internally
at cost. Purchased goodwill is developed goodwill is not recognized as an asset.
recorded in the accounts as an R&D costs for new products or new techniques may be
capitalized as deferred assets in the balance sheet. Recurring
R&D costs for improvement of present techniques cannot be
Intangible expenditures may be recognized as intangible assets, provided that the
expenditures will benefit the entity during future years. 24 Switzerland Intangible assets may not be
carried on a Swiss balance
sheet at values exceeding
their realizable values to the
company. Thus, they are
carried at the lower cost or
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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