Natural resources assets are the assets which are supplied by nature such as mineral deposits, ore deposits, timberlands etc. A Patent is an intangible asset which is having no physical substance and provides the long-term benefits to the organization owning it. Patents are the exclusive rights owned by an entity. Under Patent the owning entity only can produce or sell new inventions. Lease accounting means to give any asset on rent or lease to another party for fixed consideration at regular intervals. Leasehold improvements are the additional cost paid by the tenant for enhancements on leased property. For example,offices constructed in unfinished office space. Copyright gives the owner the specific and exclusive right to reproduce or sell books, movies or songs i.e. artistic work. Trademark means a specific logo, brand name, trade name which can be used only by the entity which is having the right to use it. Goodwill is the amount paid to acquire another entity in excess of net assets obtained at fair market value. In our case we have to describe the accounting treatment done by entities which are having at least one asset such as natural resources, patent, lease, leasehold improvements, copyright, trademarks and goodwill.

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Chapter 10, Problem 6BTN

To determine

Concept Introduction:

Natural resources assets are the assets which are supplied by nature such as mineral deposits, ore deposits, timberlands etc.

A Patent is an intangible asset which is having no physical substance and provides the long-term benefits to the organization owning it. Patents are the exclusive rights owned by an entity. Under Patent the owning entity only can produce or sell new inventions.

Lease accounting means to give any asset on rent or lease to another party for fixed consideration at regular intervals.

Leasehold improvements are the additional cost paid by the tenant for enhancements on leased property. For example,offices constructed in unfinished office space.

Copyright gives the owner the specific and exclusive right to reproduce or sell books, movies or songs i.e. artistic work.

Trademark means a specific logo, brand name, trade name which can be used only by the entity which is having the right to use it.

Goodwill is the amount paid to acquire another entity in excess of net assets obtained at fair market value.

In our case we have to describe the accounting treatment done by entities which are having at least one asset such as natural resources, patent, lease, leasehold improvements, copyright, trademarks and goodwill.

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