Presented below is a list of items that could be included

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Reference no: EM13601844

Presented below is a list of items that could be included in the intangible assets section of the balance sheet.For each of the items below, enter Intangible asset if the item is generally reported as intangible assets in the balance sheet. Otherwise indicate how, if at all, the items not reportable as intangible assets would be reported in the financial statements.

1. Investment in a subsidiary company. Not recorded; any costs related to creating goodwill incurred internally must be expensedResearch and development expense in the income statementCurrent asset (prepaid rent) in the balance sheetLong-term investments, or other assets, in the balance sheetCharge as expense in the income statementOperating losses in the income statementIntangible assetLong-term investments in the balance sheetProperty, plant and equipment in the balance sheet

2. Timberland. Not recorded; any costs related to creating goodwill incurred internally must be expensedCurrent asset (prepaid rent) in the balance sheetIntangible assetCharge as expense in the income statementProperty, plant and equipment in the balance sheetLong-term investments in the balance sheetResearch and development expense in the income statementLong-term investments, or other assets, in the balance sheetOperating losses in the income statement

3. Cost of engineering activity required to advance the design of a product to the manufacturing stage. Charge as expense in the income statementLong-term investments, or other assets, in the balance sheetOperating losses in the income statementIntangible assetCurrent asset (prepaid rent) in the balance sheetNot recorded; any costs related to creating goodwill incurred internally must be expensedResearch and development expense in the income statementLong-term investments in the balance sheetProperty, plant and equipment in the balance sheet

4. Lease prepayment (6 months' rent paid in advance). Charge as expense in the income statementNot recorded; any costs related to creating goodwill incurred internally must be expensedResearch and development expense in the income statementOperating losses in the income statementCurrent asset (prepaid rent) in the balance sheetIntangible assetLong-term investments, or other assets, in the balance sheetLong-term investments in the balance sheetProperty, plant and equipment in the balance sheet

5. Cost of equipment obtained. Long-term investments, or other assets, in the balance sheetOperating losses in the income statementCharge as expense in the income statementProperty, plant and equipment in the balance sheetLong-term investments in the balance sheetIntangible assetNot recorded; any costs related to creating goodwill incurred internally must be expensedResearch and development expense in the income statementCurrent asset (prepaid rent) in the balance sheet

6. Cost of searching for applications of new research findings. Current asset (prepaid rent) in the balance sheetCharge as expense in the income statementLong-term investments in the balance sheetResearch and development expense in the income statementProperty, plant and equipment in the balance sheetIntangible assetNot recorded; any costs related to creating goodwill incurred internally must be expensedLong-term investments, or other assets, in the balance sheetOperating losses in the income statement

7. Costs incurred in the formation of a corporation. Current asset (prepaid rent) in the balance sheetOperating losses in the income statementProperty, plant and equipment in the balance sheetCharge as expense in the income statementNot recorded; any costs related to creating goodwill incurred internally must be expensedLong-term investments in the balance sheetLong-term investments, or other assets, in the balance sheetResearch and development expense in the income statementIntangible asset

8. Operating losses incurred in the start-up of a business. Not recorded; any costs related to creating goodwill incurred internally must be expensedCurrent asset (prepaid rent) in the balance sheetResearch and development expense in the income statementCharge as expense in the income statementIntangible assetLong-term investments, or other assets, in the balance sheetOperating losses in the income statementLong-term investments in the balance sheetProperty, plant and equipment in the balance sheet

9 Training costs incurred in start-up of new operation. Long-term investments in the balance sheetProperty, plant and equipment in the balance sheetOperating losses in the income statementCurrent asset (prepaid rent) in the balance sheetResearch and development expense in the income statementNot recorded; any costs related to creating goodwill incurred internally must be expensedIntangible assetLong-term investments, or other assets, in the balance sheetCharge as expense in the income statement

10. Purchase cost of a franchise. Long-term investments, or other assets, in the balance sheetProperty, plant and equipment in the balance sheetCharge as expense in the income statementIntangible assetLong-term investments in the balance sheetOperating losses in the income statementResearch and development expense in the income statementCurrent asset (prepaid rent) in the balance sheetNot recorded; any costs related to creating goodwill incurred internally must be expensed

11. Goodwill generated internally. Current asset (prepaid rent) in the balance sheetOperating losses in the income statementCharge as expense in the income statementResearch and development expense in the income statementProperty, plant and equipment in the balance sheetIntangible assetLong-term investments in the balance sheetLong-term investments, or other assets, in the balance sheetNot recorded; any costs related to creating goodwill incurred internally must be expensed

12. Cost of testing in search for product alternatives. Property, plant and equipment in the balance sheetCurrent asset (prepaid rent) in the balance sheetCharge as expense in the income statementOperating losses in the income statementIntangible assetNot recorded; any costs related to creating goodwill incurred internally must be expensedLong-term investments, or other assets, in the balance sheetLong-term investments in the balance sheetResearch and development expense in the income statement

13. Goodwill acquired in the purchase of a business. Long-term investments in the balance sheetResearch and development expense in the income statementProperty, plant and equipment in the balance sheetLong-term investments, or other assets, in the balance sheetNot recorded; any costs related to creating goodwill incurred internally must be expensedIntangible assetCurrent asset (prepaid rent) in the balance sheetCharge as expense in the income statementOperating losses in the income statement

14. Cost of developing a patent. Property, plant and equipment in the balance sheetOperating losses in the income statementNot recorded; any costs related to creating goodwill incurred internally must be expensedResearch and development expense in the income statementIntangible assetCharge as expense in the income statementLong-term investments, or other assets, in the balance sheetLong-term investments in the balance sheetCurrent asset (prepaid rent) in the balance sheet

15. Cost of purchasing a patent from an inventor. Charge as expense in the income statementIntangible assetProperty, plant and equipment in the balance sheetCurrent asset (prepaid rent) in the balance sheetLong-term investments, or other assets, in the balance sheetOperating losses in the income statementNot recorded; any costs related to creating goodwill incurred internally must be expensedResearch and development expense in the income statementLong-term investments in the balance sheet

16. Legal costs incurred in securing a patent. Intangible assetProperty, plant and equipment in the balance sheetCharge as expense in the income statementOperating losses in the income statementLong-term investments in the balance sheetResearch and development expense in the income statementLong-term investments, or other assets, in the balance sheetCurrent asset (prepaid rent) in the balance sheetNot recorded; any costs related to creating goodwill incurred internally must be expensed

17. Unrecovered costs of a successful legal suit to protect the patent. Operating losses in the income statementCharge as expense in the income statementNot recorded; any costs related to creating goodwill incurred internally must be expensedProperty, plant and equipment in the balance sheetResearch and development expense in the income statementLong-term investments, or other assets, in the balance sheetLong-term investments in the balance sheetCurrent asset (prepaid rent) in the balance sheetIntangible asset

18. Cost of conceptual formulation of possible product alternatives. Property, plant and equipment in the balance sheetLong-term investments in the balance sheetIntangible assetLong-term investments, or other assets, in the balance sheetResearch and development expense in the income statementCurrent asset (prepaid rent) in the balance sheetCharge as expense in the income statementOperating losses in the income statementNot recorded; any costs related to creating goodwill incurred internally must be expensed

19. Cost of purchasing a copyright. Intangible assetCharge as expense in the income statementProperty, plant and equipment in the balance sheetLong-term investments, or other assets, in the balance sheetLong-term investments in the balance sheetResearch and development expense in the income statementCurrent asset (prepaid rent) in the balance sheetOperating losses in the income statementNot recorded; any costs related to creating goodwill incurred internally must be expensed

20. Research and development costs. Research and development expense in the income statementIntangible assetLong-term investments in the balance sheetProperty, plant and equipment in the balance sheetCurrent asset (prepaid rent) in the balance sheetCharge as expense in the income statementOperating losses in the income statementNot recorded; any costs related to creating goodwill incurred internally must be expensedLong-term investments, or other assets, in the balance sheet

21. Long-term receivables. Long-term investments in the balance sheetProperty, plant and equipment in the balance sheetCharge as expense in the income statementIntangible assetResearch and development expense in the income statementCurrent asset (prepaid rent) in the balance sheetNot recorded; any costs related to creating goodwill incurred internally must be expensedLong-term investments, or other assets, in the balance sheetOperating losses in the income statement

22. Cost of developing a trademark. Research and development expense in the income statementCharge as expense in the income statementLong-term investments in the balance sheetProperty, plant and equipment in the balance sheetCurrent asset (prepaid rent) in the balance sheetNot recorded; any costs related to creating goodwill incurred internally must be expensedOperating losses in the income statementLong-term investments, or other assets, in the balance sheetIntangible asset

23. Cost of purchasing a trademark.

Reference no: EM13601844

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