Professional Documents
Culture Documents
Accounting For Corporation
Accounting For Corporation
Goodwill
Goodwill 2,500,000
If a patent is purchased, the cost It includes the lump sum payment for the
includes the cash paid plus directly acquisition of the franchisee plus directly
attributable cost. attributable costs necessary for the
intended use (initial franchise fee)
For internally generated copyright, the
cost of an acquired copyright should be If the franchise agreement requires the
amortized over the useful life. franchisee to make periodic payment to
the franchisor, such payment is
Amortization considered as outright expense (periodic
franchise fee)
Under the Intellectual Property Code of
the Philippines, the term of protection for Amortization
copyright is during the life of the author
and for 50 years after death. With a definite period – the cost of the
franchise shall be amortized over the
Franchise useful life or definite period whichever is
shorter.
Under US GAAP, it is a contract-based
intangible asset and may be between With indefinitely or perpetually – shall
the government and private entities or not be amortized but tested for
between private entities and individuals. impairment at least annually.
Leasehold
Examples: Examples: