Identify two intangible assets recorded on the balance sheet of your (or another selected) business. Identify another intangible asset of that business not included in the financial statements. Have any of these intangible assets been impaired? What caused or could cause these assets to become impaired?
As of December 31, 2011, Coca-Cola had $6.4 billion of trademarks and $7.8 billion of bottlers' franchise rights. According to Google finance, the market cap (fair market value) of the company is $169.7 billion, compared to $31.9 billion book value of equity, which means that there is $137.8 billion of implied goodwill (fair value in excess of book value) that is not recorded in the financial statements. During the second quarter of 2008, the company recorded a $5.3 billion impairment charge to reduce the carrying amount of North American franchise license intangible assets to their estimated fair value. As with most impairment charges, the cause was related to a decrease in the fair value of the assets compared to the net book value.
Degree in accounting and 10 years professional experience