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Which intangible asset is recorded only as a part of the acquisition of another company?

goodwill


What is the distinction in mergers and acquistitions?

The distinction in mergers and acquisitions means that the two words have different meanings. A merger is when a company merges or becomes part of another company. An acquisition is when a company out right buys another company.


If a Company owns ordinary shares in another company are these treated as a tangible or intangible asset within the accounts.?

Ownership of practically any real physical thing, like another business, is a tangible asset.


Why is goodwill recorded at market value?

Goodwill occurs when one company acquires another, but pays more than the fair market value of the net assets. When one company acquires another, the goal is to increase the value of the company as a combined firm. The price the buyer pays will tend to exceed the total market value of the acquired company. The difference between the market value and the price paid is referred to as goodwill, and needs to be known in order to keep the books balanced for the company. Goodwill is classified as an intangible asset on the balance sheet.


Who owns goodwill?

Goodwill is an intangible asset that is owned by a business, typically arising when a company acquires another for a price greater than the fair value of its identifiable net assets. It reflects the value of a company's brand reputation, customer relationships, and other factors that contribute to its earning potential. In the context of ownership, goodwill is recorded on the balance sheet of the acquiring company and remains with that company until it is either sold or impaired.

Related Questions

Which intangible asset is recorded only as a part of the acquisition of another company?

goodwill


What does the concept of merger acquisition refer to?

A "merger" is what happens when two companies join to become one company. An "acquisition" is when one company purchases another company. An acquisition can also be called a "takeover".


When a company seeks to acquire another is called the?

Acquisition


What is a lift-out versus an acquisition?

Acquisition is kind of responsibilty but complex one, it is also getting something - like when company buys another building or another company. A lift out is a recruiting method whereby an entire team is “lifted out” of one organization, and inserted into another. It differs from an acquisition in that the emphasis is on the team and its leadership, and not another company...I hope I helped :-)


What is a friendly acquisition?

An amicable situation where a company's management or board agree to merge or be acquired by another company. The opposite would be a hostile takeover or acquisition.


How doe you say takeover of another company in one word?

The one-word term for the takeover of another company is "acquisition." An acquisition occurs when one company purchases most or all of another company's shares to gain control. This can be executed through various means, including cash or stock transactions.


Is acquisition an adjective?

No, the word acquisition is a noun., a singular, common noun; a word for the process of buying something or obtaining something in some other way; a company that is bought by another company.


Intangible assets valued and reported in financial statement?

Intangible assets are reported by a company if they meet certain criteria. For example, if a company were to purchase a certain technology that it plans to use in its new product, then that technolgical intangible asset would be recorded on the balance sheet of the acquring company. However, if a company creates its own technology it is less likely that they will be able to record an asset for that development, in which case, the costs will be reflected immediately in the Company's profit and loss statement.


What is the other term for external growth?

External growth can be an acquisition or merger with another company or companies.


Is the other term for external growth?

External growth can be an acquisition or merger with another company or companies.


What are the personnel acquisition and retention of pure foods company?

what are the personnel acquisition and retention of pure foods company? what are the personnel acquisition and retention of pure foods company?


What is the distinction in mergers and acquistitions?

The distinction in mergers and acquisitions means that the two words have different meanings. A merger is when a company merges or becomes part of another company. An acquisition is when a company out right buys another company.