pre class balance sheet

Has the company pays 2m to acquire a patent for a new

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: lled by the company - Legal 2tle or unrestricted right to use - Cost to acquire asset has been incurred - Executory contracts are not yet assets (if nothing has been exchanged) 2.  The asset must possess expected future benefits that can be measured - Expected future cash receipts - Know, with some certainty, what the future benefits will be 6 Should we recognize an asset? •  The company spends $10M to develop a new sof drink. No commercially feasible product yet evolved, but the company hopes that such a product will evolve in the near future. has •  The company pays $2M to acquire a patent for a new sof drink from another company. •  The company signs a contract with United Can Corpora2on for the purchase of $4M of sof...
View Full Document

This document was uploaded on 03/06/2014 for the course 15 15.502 at MIT.

Ask a homework question - tutors are online