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How do you account for a client database acquisition?

Hi there,

I have a client who has recently bought a database of clients in their industry. How should the cost of this be reflected in the clients accounts?

Thanks for your help.

Adam

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By BKD
15th Aug 2012 14:28

Goodwill

.

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21st Aug 2012 13:24

Most certainly not goodwill

BKD wrote:

.

 

Goodwill can only be recognised on purchase of a business.

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By BKD
21st Aug 2012 14:17

Whatever

The Limey wrote:

Goodwill can only be recognised on purchase of a business.

I lazily said 'goodwilll' because it was easier than saying "intangible fixed asset". But goodwill can be transferred on purchase of part of a business - which may include a block of clients. But it's not worth arguiing the point, I think the OP has the gist of the correct treatment.

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By LQF
15th Aug 2012 14:48

In my opinion, this will be classified as an intangible asset.

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16th Aug 2012 09:12

Thanks for your help.

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21st Aug 2012 14:42

It may be easier, but they're different things!

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