Explain the circumstances in which you would capitalise the cost of: 1. A reputed brand name acquired
Question:
Explain the circumstances in which you would capitalise the cost of:
1. A reputed brand name acquired as part of a business combination and expected to have a useful life of at least 20 years
2. Acquiring a patent for manufacturing a product that has significant market potential
3. Regular gifts given and parties conducted to maintain customer loyalty
4. Research to improve the customer satisfaction with products of the company
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To be reported as an intangible asset the resources need to be identifiable and for recognition as an asset they must meet all three of the capitalisa...View the full answer
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Related Book For 
Financial Accounting An Introduction
ISBN: 9780273737650
2nd Edition
Authors: Mr Barry Elliott, Mr Augustine Benedict
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