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Accounting questions

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PocketX 53 Posts May 16 2009 03:54 GMT #1 Hi these are university level CANADIAN GAAP/IFRS accounting questions, please either explain what I should do or share a link that explains the concept. Mainly, I'm just looking for clarification whether this is allowed or not. 1) If company A buys a customer list from company B, how does company B record it? (sale of an intangible asset) A journal entry would help, but not completely necessary. I'm just wondering if company B's intangible assets would decrease. 2) If a company is private, there are usually no GAAP constraints, but they would have to abide to GAAP if they want a loan from a bank. If there is a buyer that wants to buy the company, is that considered a constraint? (as in, would they want GAAP in the company's financial statements?) thanks, if anything is unclear feel free to ask. I was going to pm the accountants in the manpower thread, but there was no such category =(

broz0rs United States2294 Posts May 16 2009 05:07 GMT #2 1. debit cash. credit intangible asset. so yea, intangible asset is decreasing 2. constraint is when a company must tie down a certain amount of their asset due to a future event, such as losing a lawsuit.

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