(Classification Issues—intangibles) Presented below and on the next page is a list of that could be included in the intangible assets section of the statement of financial position. Investment in a subsidiary company. Timberland, Cost of engineering activity required 10 advance the design of product to the manufacturing stage. Cost of searching for applications of new research findings. Costs incurred in the formation of a corporation. Training costs incurred in start-up of new operation. Purchase cost of a franchise. Goodwill generated internally Cost of testing in search for product alternatives. Goodwill acquired in the purchase of a business. Cost of developing a patent (before achieving economic viability). Cost of purchasing a patent from an inventor. Legal costs incurred in securing a patent. Unrecovered costs of a successful legal suit to protect the patent, Cost of conceptual formulation of possible product alternatives. Cost of purchasing a copyright. Development costs incurred after achieving economic viability. Long-term receivables. Cost of developing a trademark. Cost of purchasing a trademark. Instructions Indicate which items on the list above would generally be reported as intangible assets in the statement of financial position.                  Indicate how, if at all, the items not reportable as intangible assets would be reported in the financial statements.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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(Classification Issues—intangibles) Presented below and on the next page is a list of that could be included in the intangible assets section of the statement of financial position.

  1. Investment in a subsidiary company.
  2. Timberland,
  3. Cost of engineering activity required 10 advance the design of product to the manufacturing stage.
  4. Cost of searching for applications of new research findings.
  5. Costs incurred in the formation of a corporation.
  6. Training costs incurred in start-up of new operation.
  7. Purchase cost of a franchise.
  8. Goodwill generated internally
  9. Cost of testing in search for product alternatives.
  10. Goodwill acquired in the purchase of a business.
  11. Cost of developing a patent (before achieving economic viability).
  12. Cost of purchasing a patent from an inventor.
  13. Legal costs incurred in securing a patent.
  14. Unrecovered costs of a successful legal suit to protect the patent,
  15. Cost of conceptual formulation of possible product alternatives.
  16. Cost of purchasing a copyright.
  17. Development costs incurred after achieving economic viability.
  18. Long-term receivables.
  19. Cost of developing a trademark.
  20. Cost of purchasing a trademark.

Instructions

  1. Indicate which items on the list above would generally be reported as intangible assets in the statement of financial position.                 
  2. Indicate how, if at all, the items not reportable as intangible assets would be reported in the financial statements.   
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