Trade name

Trade name

Didn't find your answer?

How would you treat a purchase of trading name and marketing mailing list?  If it is a goodwill how would you revalue it?

Replies (3)

Please login or register to join the discussion.

By johngroganjga
22nd Nov 2014 14:19

It's an intangible asset, probably best described as goodwill. Why do you ask about revaluing it? Why does the need to do so arise?

Thanks (0)
avatar
By Stuart.thomson
22nd Nov 2014 19:58

Its not goodwill but it is an intangible asset and should be described as such.

Thanks (0)
avatar
By Richieinspain
22nd Nov 2014 21:19

Identifiable Intangibles

Assuming that this is a business combo...identifiable assets acquired, liabilities assumed, and NCI's in the aquiree, are recognised separately from goodwill IFRS 3.10 (this is the recognition principle).  

Goodwill is the excess of consideration plus the amount of any NCI in the acquiree over amounts of identifiable assets acquired and liabilities assumed.

Trading name and mailing lists are identifiable and should be recognised separately an accounted for in line with IAS 38.  Recognise initially at cost (IAS 38.21) and amortise assuming that it has a finite life.  If it has an indefinite life, don't amortise but assess for impairment on an annual basis (IAS 38.107)

 

Note - UK GAAP treatement may differ slightly

Thanks (0)