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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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Goodwill

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Most certainly not goodwill

BKD wrote:

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Goodwill can only be recognised on purchase of a business.

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

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Thanks for your help.

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

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