IP - trademarks accounting

IP - trademarks accounting

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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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boxfile
By spilly
15th Jul 2017 08:50

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.

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Replying to spilly:
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By qwertyqwerty05
15th Jul 2017 11:06

Thanks for the reply.

I guess my question is does the IP have to be on the balance sheet (in asset management system) at nil value for the company to own it? Or does the sales agreement just mean the company owns it and you can just write it off to the P&L? Many thanks, probably a silly little question I know!

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