Video: Capitalization of Costs

In this lesson, delve into the intricacies of capitalizing costs with Nick Palazzolo, CPA, as he unravels the procedures for recording intangible assets obtained through arm's length transactions. By exploring scenarios like purchasing a company or incurring liabilities, he clearly delineates what counts as capitalizable costs, emphasizing the importance of the fair value of consideration given against the property acquired. Nick explains that understanding equity versus cost outlay is crucial, highlighting that while goodwill can emerge from acquisitions, it shouldn't be included in the cost of identifiable intangible assets. Get ready to engage with practical examples that shine a light on the key components of capitalization and how they feature prominently in problem-solving within accounting practices.

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Intangibles, R&D and Software Costs, & Business Combinations
Module: 4 Concepts, 42 Videos