Recent Articles

Intangibles

Intangibles refers to a set of assets that are non physical in nature. Examples of these types of assets include patents, rights, copyrights, goodwill, an financing fees for a loan. These types of assets are located in the bottom section of the asset side of the balance sheet and amortization is used to allocate the actual cost over time to the income statement.

Amortization of Financing Costs

01/11/2017

When a business acquires a loan there are typically closing costs involved.   Generally Accepted Accounting Principles (GAAP) require these costs to be amortized (allocated) over the life of the loan.  There are several principles the reader [...]

Three Primary Characteristics of Successful Businesses

11/11/2014

Well, this is my 200th article in two years.  So I’m going back to the very first article I wrote and essentially rewriting that piece.  When I reviewed it, I thought how poorly written and formatted the piece is and therefore I wanted to make [...]

Tangible and Intangible – Business Definitions and Use

11/03/2014

Tangible and intangible are terms with several different meanings.  A lot of well educated folks have a difficult time providing an all inclusive definition.  Someone once described tangible as ‘something that can be burned’.  Well, land is [...]

Book Value – Definition and Usage

05/15/2014

There are several definitions associated with the term ‘Book Value’ and depending on the context of its use, determines the correct definition and proper use.  The three primary uses of the term are as follows: Stock, Corporate Value or Balance [...]