Post by asadul5585 on Feb 22, 2024 9:06:11 GMT
An asset is everything that can generate future benefits for the business, from invested resources and products in stock to intangible items, such as a brand or even copyright. But in the accounting world, how is this studied? Think of a well-known brand, for example, Coca-Cola. Every year, the Interbrand consultancy publishes Best Global Brands, its annual ranking of the most valuable brands in the world. In 2021, Coca-Cola was in 6th position, with a value of US$57.4 billion. The best-known soft drink brand in the world was behind only Samsung, Google, Microsoft, Amazon and Apple, the latter valued at US$408.2 billion. Looking at these numbers is talking about a company's brand value, which is an intangible asset. What is intangible in accounting As we have already clarified, these non-tangible data are precisely those that do not have a physical existence. Other examples of intangible assets are software, patents, acquired goodwill, knowledge, franchises, models, projects and prototypes. In the accounting universe, it is possible to identify an intangible asset according to Technical Pronouncement CPC 04 , which defines that this type of asset: It is capable of being separated or divided from the company and can therefore be traded, sold, licensed, transferred, rented or exchanged.
It is the result of contract rights or other legal rights. It will probably bring economic benefits created in favor of the company. Allows your cost to be measured safely. Still according to CPC 04, this type of asset must initially be measured at its cost. The cost of a separately purchased intangible asset includes: its purchase price, plus non-recoverable taxes on the Kuwait Mobile Number List purchase, after deducting commercial rebates and discounts, and import taxes; It is and also costs directly attributable to preparing the asset for its intended purpose. How to account for intangible assets With the accounting definitions of this non-tangible item in mind, we can better understand how to account for it. If the item is not recognized as an intangible asset according to the criteria of CPC 04, it is included as an expense in the balance sheet. If it is recognized as an intangible asset, it belongs to a group called “non-current assets”. This group was established by Law No. 11,638 of 2007.
Before this law, this type of asset ranged from physical and non-physical assets, that is, real estate, vehicles and even brands and patents. To illustrate with an example, let's think about accounting for trademark registration costs , which happens when the company begins its activities. These costs relate to: the registration of a trademark in one’s own name; to the already registered trademark purchased from third parties; It is to purchase the rights to use a brand for a specified period. Only in the case of creating your own brand are the costs not recorded in the intangible asset account, because, as we have already seen, it needs to be capable of being separated or divided from the company and there is no way to separate the creation costs from the production costs. development of the brand as a whole. In this situation, the record must be made as an operational cost or expense. E-book achieving zero default What are intangible assets within service management Perhaps you are wondering what place this non-tangible item occupies within your service management . Knowledge, for example, is an essential intangible asset.
It is the result of contract rights or other legal rights. It will probably bring economic benefits created in favor of the company. Allows your cost to be measured safely. Still according to CPC 04, this type of asset must initially be measured at its cost. The cost of a separately purchased intangible asset includes: its purchase price, plus non-recoverable taxes on the Kuwait Mobile Number List purchase, after deducting commercial rebates and discounts, and import taxes; It is and also costs directly attributable to preparing the asset for its intended purpose. How to account for intangible assets With the accounting definitions of this non-tangible item in mind, we can better understand how to account for it. If the item is not recognized as an intangible asset according to the criteria of CPC 04, it is included as an expense in the balance sheet. If it is recognized as an intangible asset, it belongs to a group called “non-current assets”. This group was established by Law No. 11,638 of 2007.
Before this law, this type of asset ranged from physical and non-physical assets, that is, real estate, vehicles and even brands and patents. To illustrate with an example, let's think about accounting for trademark registration costs , which happens when the company begins its activities. These costs relate to: the registration of a trademark in one’s own name; to the already registered trademark purchased from third parties; It is to purchase the rights to use a brand for a specified period. Only in the case of creating your own brand are the costs not recorded in the intangible asset account, because, as we have already seen, it needs to be capable of being separated or divided from the company and there is no way to separate the creation costs from the production costs. development of the brand as a whole. In this situation, the record must be made as an operational cost or expense. E-book achieving zero default What are intangible assets within service management Perhaps you are wondering what place this non-tangible item occupies within your service management . Knowledge, for example, is an essential intangible asset.