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Recorded at acquisition cost. Internally developed intangibles are included as assets
provided their cost does not exceed their “prudently
estimated usage value or future return” for the enterprise.
Intangible assets may be capitalized only if they have been acquired for cash consideration.
Intangible assets are accounted for at their purchase price or production cost. They are carried
forward on the balance sheet as long as they provide a measurable future economic benefit
controlled by the entity.
Internally purchased goodwill is not recognized in the accounts. Purchased goodwill can arise
through the acquisition of a business entity or part thereof, the assets therein or some or all of
the shares in another entity. It is measured as the excess of the fair value of the purchase
consideration over the fair value of the identifiable net assets acquired.
Research and development costs: although the Accounts Presentation Act permits deferral,
the Accounting Guideline suggests that development should be capitalized only where there
is a c...
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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