Title: Reporting of Intangibles by Service Sector in Indian context Introduction "I can make a whole lot more money skillfully managing intangible assets than tangible assets." – Warren Buffet In the current knowledge based economy, there is a transition from matter based economy to one based on ideas. The emphasis is shifting from natural resources to new thoughts and designs. With the shift from monetary economy to knowledge based economy, the wealth can be added by increasing the intangibles
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86 The modern balance sheet is a lie! It omits the company's most im- portant assets. Probably 80 percent of a company's value lies in its in- tangible assets; but they are not on the books. The value of a company's plant, equipment, inventory, and working capital hardly reflects a true value of a company. For example, where is Coca-Cola's brand value on the com- pany's balance sheet? Coca-Cola's brand value is estimated at $70 bil- lion. Where is the value of its customer
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Joint venture An international joint venture means establish a firm that is jointly owned by two or more independent firms, the most joint venture is 50/50 venture，and each of parts holds a 50% ownership stake and contributes a team of managers to share operating control. It is quick and easy way to new market by using local partner’s knowledge, local network. Joint venture has a number of advantages. Firstly, IJVs enable companies to access complementary assets and resources. Secondly, it
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related to the relationship between tangible and intangible assets to the value of an entire physician practice enterprise depicted through Bonbright’s text is explained, as well. The next concept in the article is that of the intangible asset goodwill. It’s explained from both accounting and financial economics perspectives. Standard of value is then defined and the various types are given: fair market value, fair value market value, investment (strategic) value, and fundamental (or intrinsic)
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Ch.8 1. C Current rate is used when inventory is measured under current rate method. On the other hand, while temporal method is used, average rate will be using for recording inventory. In current method, equipment is recorded in current rate and historical rate is used in temporal method. Depreciation expense in current method uses average rate and in temporal method, historical rate is used. Sales revenue uses average rate in either method. 2. C In translating the financial statements
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assets, acquired either separately or as part of a business combination, to financial statement users. Amortization of Certain Intangible Assets (FAS 142, or FASB ASC 350) Interpreting FASB Statement No. 142 (now FASB ASC 350, Intangibles: Goodwill and Other) may be difficult for intangibles with contractual or legal lives. This article describes situations in which it is appropriate to avoid amortization on these intangible assets and offers an approach based on Statement No. 142 and related
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MEMORANDUM To: From: RE: 13-07 Definition of a Business Facts There are two different companies involved in this case, Fuzzy Dice a manufacturer of novelty items and Tiny Tots Toys a manufacturer of children’s toys. Recently, Tiny has faced financial hardship and has thus decided to sell its assets to Fuzzy. This asset acquisition will include the manufacturing facility and all of the equipment, delivery vehicles, licenses, and patents. Fuzzy would like to utilize the new facility in
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Background We’ve come a long way since making the first ever mobile call in the UK on 1 January 1985. Today, more than 400 million customers around the world choose us to look after their communications needs. In 30 years, a small mobile operator in Newbury has grown into a global business and one of the most valuable brands in the world. We now operate in around 30 countries and partner with networks in over 50 more. In an increasingly connected world, it’s no longer just about being able to talk
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Week 2 Case Study 1) Firm Fixed-Price Contract: A contract in which the price is not subject to any adjustment by reason of the cost experience of the contractor or his performance under the contract (FASB 2012). References to Firm Fixed-Price Contract are under the Revenue Codification. Revenue/Topic 605 Revenue Recognition/35 Construction-Type and Production-Type Contracts I did not locate any SEC documents relating directly to Firm Fixed-Price Contract but Topic 605 Revenue Recognition
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(with some exceptions, of course). What is Amortization? Amortization is the same process as depreciation, only for intangible assets - those items that have value, but that you can't touch. For example, a patent or trademark has value, as does goodwill. To add to the confusion, amortization also has a meaning in paying off a debt, like a mortgage, but in the current context it has to do with business assets. Revenue is the amount received by the business from selling main goods or services
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