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
Replies (6)
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Whatever
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.