RSM220H1 Lecture Notes - Lecture 11: Deferral, Income Statement, Intangible Asset
Document Summary
Asset representing future economic benefits arising from other assets required in business combination that are not individually identified and separately recognized. If 100% of business is acquired, all identifiable net assets are recognized at fair value on acquisition date. Difference between fair value of consideration transferred to acquire business and fair value of amounts assigned to identifiable net assets is recognized as goodwill. Can be separated from entity, sold/transferred/licensed/exchanged/rented either by itself or in combination with another contract, identifiable asset, or liability. Acquisition cost and expenditures to ready for intended use. If acquired for shares, cost is asset"s fair value unless value cannot be measured reliably. Aspe allows for either fair value of asset or shares. Fair value of item given up/intangible received if non-monetary exchange. When several intangibles are bought together, cost is allocated to each intangible based on relative fair value. Intangibles that are not identifiable assets are goodwill.
