If you have a question about accounting, bookkeeping, QuickBooks or Peachtree I have the answer.
OK - intangible assets like copyrights, patents, goodwill, trade names etc should be shown on the Balance Sheet as "Other Assets" type of account and be recorded at cost
If you did not buy them but developed them will not appear on the balance sheet
Also the amortization associated with any intangible asset will also be shown as an "Other Assets" type of account but like accumunlated depreciation be a contra account and have a credit balance to offset the cost of the intnagible asset
Let me know if you have any questions or would like to discuss further - I'm here to help.
does the worth of the asset come into play, just like tangible assets? or do you put on your balance sheet ONLY the cost of say, developing technology for a product?
Cost only - NOT FAIR MARKET VALUE
OK- so let me get this straight. If i had technology developed and i spent 3M developing the technology, and it was owners investment; what would i use as the payee and account for this? Is it bad to show that all of the assets coming from owner equity ? thanks so much!
Research and developement costs are current period expenses and not capitalized. If however you go out and buy the rights to a patent then that is an intangible asset and is recorded at cost on the books. So in your example of spending 3 million developing technology all of this would be a current period expense and not an asset.
I know it sounds somewhat counter intuitive but that is the correct current treatmentof internally developed intangible assets.
ok thanks! that answers my question of assets coming from owner equity!