Posted On: 04/05/2014 11:31:40 AM
Post# of 1609
Hi all,
while it is very entertaining to watch individuals in the unknown waters predictable trying to make a volte-face, we here are undeterred in concentrating our energy on the matters that really count.
One of these matters is my opinion about piece no. 2: "Intangible assets - the inner beauty of our company".
The treatment of expenditures achieving certifications is a much discussed issue.
It is a big difference accounting these costs as administrative expenses instead of treating them as capitalized assets - especially regarding the enterprise value and the balance sheet.
In my eyes a capitalization in the balance sheet of the expenditures caused by the creation of intaglible assets is sustainable qualified to strengthen the position of a company e. g. when raising additional funds. Third parties, e. g. creditors, could face many problems evaluating the fair market value of a company. All the more as a company classifies expenditures as a loss carryforward caused by administrative expenses.
Are there any benefits regarding the actual accounting policies? I was not able to find a single one - especially considering the field of company taxation. Who is able to give an outline of any benefit?
Is it possible to change the accounting policies?
Sailor
while it is very entertaining to watch individuals in the unknown waters predictable trying to make a volte-face, we here are undeterred in concentrating our energy on the matters that really count.
One of these matters is my opinion about piece no. 2: "Intangible assets - the inner beauty of our company".
The treatment of expenditures achieving certifications is a much discussed issue.
It is a big difference accounting these costs as administrative expenses instead of treating them as capitalized assets - especially regarding the enterprise value and the balance sheet.
In my eyes a capitalization in the balance sheet of the expenditures caused by the creation of intaglible assets is sustainable qualified to strengthen the position of a company e. g. when raising additional funds. Third parties, e. g. creditors, could face many problems evaluating the fair market value of a company. All the more as a company classifies expenditures as a loss carryforward caused by administrative expenses.
Are there any benefits regarding the actual accounting policies? I was not able to find a single one - especially considering the field of company taxation. Who is able to give an outline of any benefit?
Is it possible to change the accounting policies?
Sailor
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