Identifiable Asset

Identifiable Asset
An asset of an acquired company that can be assigned a fair value and can be reasonably expected to provide a benefit for the purchasing company in the future. Identifiable assets can be both tangible and intangible assets.

If an asset is deemed to be identifiable, the purchasing company records it as part of its assets on its balance sheet. If an asset is not deemed to be an identifiable asset, then its value is considered part of the goodwill amount arising from the acquisition transaction.

For example, suppose ABC conglomerate company purchases both a smaller manufacturing firm and a smaller start-up internet marketing company. The manufacturing company would likely have most of its value tied up in property, equipment, inventory and other physical assets, so virtually all of its assets would be identifiable. The internet marketing company, on the other hand, would likely have very few identifiable assets, and its value as a company would be based on its future earnings potential. As such, the purchase of the marketing company would generate a lot more goodwill on ABC's books, because it would gain few identifiable assets from the marketing company.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • Intangible asset — Intangible assets are defined as identifiable non monetary assets that cannot be seen, touched or physically measured, which are created through time and/or effort and that are identifiable as a separate asset. There are two primary forms of… …   Wikipedia

  • Military asset — In military usage, a military asset is a weapon or means of production of weapons or other defensive or offensive devices or capabilities. Description Whether a military asset is considered a capital asset, or part of public infrastructure, is a… …   Wikipedia

  • Real Asset — Physical or identifiable assets such as gold, land, equipment, patents, etc. They are the opposite of a financial asset. Real assets tend to be most desirable during periods of high inflation …   Investment dictionary

  • ancient Greek civilization — ▪ historical region, Eurasia Introduction       the period following Mycenaean civilization, which ended in about 1200 BC, to the death of Alexander the Great, in 323 BC. It was a period of political, philosophical, artistic, and scientific… …   Universalium

  • Privacy — For other uses, see Privacy (disambiguation). Privacy (from Latin: privatus separated from the rest, deprived of something, esp. office, participation in the government , from privo to deprive ) is the ability of an individual or group to seclude …   Wikipedia

  • Geographic information system — GIS redirects here. For other uses, see GIS (disambiguation). A geographic information system, geographical information science, or geospatial information studies is a system designed to capture, store, manipulate, analyze, manage, and present… …   Wikipedia

  • Tax deduction — This article is about the deduction of expenses for the purpose of calculating taxable income. For tax deducted at source, see Withholding tax. Taxation An aspect of fiscal policy …   Wikipedia

  • Bubble Theory — A school of thought that believes that the prices of assets can temporarily rise far above their true values and that these bubbles are easily identifiable. Former Federal Reserve Chairman Alan Greenspan famously coined the term irrational… …   Investment dictionary

  • Internet privacy — involves the right or mandate of personal privacy concerning the storing, repurposing, providing to third parties, and displaying of information pertaining to oneself via the Internet. Privacy can entail both Personally Identifying Information… …   Wikipedia

  • Computers and Information Systems — ▪ 2009 Introduction Smartphone: The New Computer.       The market for the smartphone in reality a handheld computer for Web browsing, e mail, music, and video that was integrated with a cellular telephone continued to grow in 2008. According to… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”