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Goodwill can now only be impaired under these GAAP standards. [ 9 ] Instead of deducting the value of goodwill annually over a period of maximal 40 years, companies are now required to determine the fair value of the reporting units, using present value of future cash flow, and compare it to their carrying value (book value of assets plus ...
In the Clairol case, [5] the court stated that goodwill can be depreciated through "reduction of the esteem in which the mark itself is held or through the direct persuasion and enticing of customers who could otherwise be expected to buy or continue to buy goods bearing the trade mark". The court added that the test of confusion is irrelevant ...
If the value of the land is $50,000, you can depreciate the remaining $450,000. Using a straight-line depreciation method, you could deduct $16,363 from the taxable income each year for the next ...
In tax law, amortization refers to the cost recovery system for intangible property.Although the theory behind cost recovery deductions of amortization is to deduct from basis in a systematic manner over an asset's estimated useful economic life so as to reflect its consumption, expiration, obsolescence or other decline in value as a result of use or the passage of time, many times a perfect ...
For example, a laptop with a $900 depreciable value and a 10-year useful life would be depreciated at $90 each year. Double-declining balance. This method allocates more depreciation to the early ...
Land can never be depreciated. In order for all other tangible assets to be eligible for depreciation: You have to own the asset. You must use the asset as part of your business.
An asset's initial book value is its actual cash value or its acquisition cost. Cash assets are recorded or "booked" at actual cash value. Assets such as buildings, land and equipment are valued based on their acquisition cost, which includes the actual cash cost of the asset plus certain costs tied to the purchase of the asset, such as broker fees.
Intangible assets can for example be used in equity finance. For example, many Swiss companies use equity finance to support their growth, particularly Venture capital. The information gathered through interviews indicates that a supportive IP portfolio, particularly when reinforced by robust patents, plays a crucial role as a contributing factor.