The ara and the accounting act 17 permit the

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Unformatted text preview: s, but an ICAC recommendation of January 16, 1992 subjects it to certain conditions which in fact make capitalization of these expenses difficult. 23 Sweden UK If an entity has acquired a business for consideration that exceeds the value of the acquired assets, the difference may be recognized as an intangible asset to the extent that it represents goodwill. Expenditures for technical assistance, research and development, trial runs, market research and similar activities may be recognized as intangible assets, provided that the expenditures will benefit the entity during future years. The ARA and the Accounting Act §17 permit the capitalization of R&D expenditures, as fixed assets if they are estimated to be material value to the operations for future years. Positive purchased goodwill Internally developed goodwill should not be capitalized. An should be capitalized and internally developed intangible asset may be capitalized only classified as an asset on the if it has a readily ascertainable market value. Research and balance sheet. An intangible developm...
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