Hi
I have a question: Situation:
Company A is acquiring the IP of a product from a another entity in the group called company B.
Company B acquires the IP for the IP NBV in company A which is £500, however £500 is below the capiliation threshold for company B.
Question is, if company B write of the $500 off to the P&L (debit P&L £500) does it still own the IP, or does company B still have to put the IP on the balance sheet at a nil value to represent ownership of that IP? Or can it simily write it off and have no IP asset on the balance sheet?
Many thanks
Replies (2)
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It could acquire the IP for a higher value that would enable it to be capitalised. There would be a profit on the sale from the original company though.