do not amortize (or "depreciate" as you say) goodwill. if you are a public company, you will be shot. if you are a private, you will restate when your accountants find out, and in both cases, and you'll have to report yourself to your state accounting board and to shareholders.
statement 144 replaced 142. companies must now evaluate whether their goodwill will be recoverable in future periods.
If a company is taking an impairment charge, that means they have made the determination that intangible assets do not have future benefit (i.e. the assets do not meet the technical definition of an asset). This determination is usually made after a thurough and complex cashflow forcast has been prepared, bought off on by the auditors, and approved by managment and board of directors.
and to confirm, goodwill is simply the value SCO paid for a different company over the book value. it has nothing to do with SCO's own brand image, or anything along those lines. A company can not book goodwill on themselvs!
you can actually capitalize advertising if it meets the criteria of SOP 93-7.
part of the criteria is that you can establish a revenue stream with the costs incurred. many cases this can't be established. It's most applicable in industries that have specific catalogs their dealers make purchases out of. If you incur $1m to build a catalog for a product year, you can amortize the cost of the catalog over the year your dealers are making those purchases etc...
matching the costs to the revenue stream, especially in the case of banner advertising, is where the art comes in. I'm sure amazon or ebay have that accounting nailed!
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jesus. geeks posting about accounting!!! yikes.
do not amortize (or "depreciate" as you say) goodwill. if you are a public company, you will be shot. if you are a private, you will restate when your accountants find out, and in both cases, and you'll have to report yourself to your state accounting board and to shareholders.
statement 144 replaced 142. companies must now evaluate whether their goodwill will be recoverable in future periods.
If a company is taking an impairment charge, that means they have made the determination that intangible assets do not have future benefit (i.e. the assets do not meet the technical definition of an asset). This determination is usually made after a thurough and complex cashflow forcast has been prepared, bought off on by the auditors, and approved by managment and board of directors.
and to confirm, goodwill is simply the value SCO paid for a different company over the book value. it has nothing to do with SCO's own brand image, or anything along those lines. A company can not book goodwill on themselvs!
you can actually capitalize advertising if it meets the criteria of SOP 93-7.
part of the criteria is that you can establish a revenue stream with the costs incurred. many cases this can't be established. It's most applicable in industries that have specific catalogs their dealers make purchases out of. If you incur $1m to build a catalog for a product year, you can amortize the cost of the catalog over the year your dealers are making those purchases etc...
matching the costs to the revenue stream, especially in the case of banner advertising, is where the art comes in. I'm sure amazon or ebay have that accounting nailed!
The catalog for living.
features a nice recipe finder.
get them to tell you secrets.
invest $1000 accordingly.