Balance Sheet and Cost

Topics: Balance sheet, Goodwill, Intangible asset Pages: 4 (1082 words) Published: September 29, 2012
E12-1 (Classification Issues—Intangibles) Presented below is a list of items that could be included in the intangible assets section of the balance sheet. Instructions
(a) Indicate which items on the list would generally be reported as intangible assets in the balance sheet. (b) Indicate how, if at all, the items not reportable as intangible assets would be reported in the financial statements. 1. Investment in a subsidiary company.

2. Timberland.
3. Cost of engineering activity required to advance the design of a product to the manufacturing stage. 4. Lease prepayment (6 months’ rent paid in advance).
5. Cost of equipment obtained.
6. Cost of searching for applications of new research findings. 7. Costs incurred in the formation of a corporation.
8. Operating losses incurred in the start-up of a business.
9. Training costs incurred in start-up of new operation.
10. Purchase cost of a franchise.
11. Goodwill generated internally.
12. Cost of testing in search for product alternatives.
13. Goodwill acquired in the purchase of a business.
14. Cost of developing a patent.
15. Cost of purchasing a patent from an inventor.
16. Legal costs incurred in securing a patent.
17. Unrecovered costs of a successful legal suit to protect the patent. 18. Cost of conceptual formulation of possible product alternatives. 19. Cost of purchasing a copyright.
20. Research and development costs.
21. Long-term receivables.
22. Cost of developing a trademark.
23. Cost of purchasing a trademark.
Intangible assets-10,11,13,14,15,16,17,19,20,22
1,2-long term investments under non current assets in balance sheet 3,6,12,20-research and development cost under SG&A expenses in the consolidated financial statements 4-prepaid expenses under current assets in balance sheet

5-property, plant and equipment in the balance sheet
7,8,9-operating expenses
18-research and development cost
21-current assets in the balance sheet

Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Balance Sheet Essay
  • Balance Sheet and Goodwill Essay
  • Balance Sheet and Net Income Essay
  • balance sheet Essay
  • Balance Sheet Essay
  • Balance Sheet and Acquisition Date Essay
  • Balance Sheet Analysis Applebee's International Research Paper
  • Essay on Balance Sheet and Income Statement Analysis

Become a StudyMode Member

Sign Up - It's Free