All of you start-up finance and
How do you calculate the cost of an acquistion?
Answers
Capitalization:
Legal and incorporation fees, license fees, maybe R & D (research, T & E related to R & D),etc.
Best bet is to look at your accounting text books which gives the answer to your question.
1
Thanks, Wayne.
Those are some of the things I was thinking also. I'm sure there's more, especially when different industries are considered.
My wife had an interview with a college yesterday who is looking for an accounting 101 teacher. She's an
She has limited exposure to corporate accounting, which led her to be surprised by the question. She's previously worked for one national company and an international company as a sales tax analyst at one, and an accounts payable
http://smallbusiness.chron.com/accounting-rules-expensing-vs-capitalizing-amortizing-costs-37284.html
https://www.americanexpress.com/us/small-business/openforum/articles/4-
http://www.accountingcoach.com/blog/capitalize
http://smallbusiness.chron.com/rd-expenses-not-capitalized-43690.html
Link for your acquisition cost question. Look at the IRS publication related to acquisition cost. Also the IRS publication on expensing and capitalizing costs.
What are the materiality convention for the company? What amount does the company consider material for that item? Assuming this would be a small business, (start-up restaurant) the assets like Flatware (forks, knifes, bowls, spoons) might be expensed if under $500. Some of the legal fees could be expensed under IRS rules if they meet the requirements in that link I'm giving you. The R&D should probably not be capitalized. Read the articles in the links I'm giving you and the IRS publications. Use your own professional judgment in this matter and do not credit me for any decisions you make based on this post. Hope this helps.
http://www.accounting-and-bookkeeping-tips.com/accounting-forum/viewtopic.php?f=4&t=7925&start=0
Link for information on the flatware. If you know of any openings for an accountant or auditor let me know.
Very helpful conversation
Under IFRS? All expensed unless your R&D leads to intangible assets under IAS 38.
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