The Accounting Review Vol. 37 No. 1 1962
INTANGIBLE EXPENSES AND AMORTIZING INTANGIBLE ASSETS.
Abstract
Accountants and economists have placed a great deal of emphasis on researching elemental factors of our dynamic economy. It is the purpose of this report to reflect upon the various methods of intangible cost recovery most commonly used in selected industries. Three hundred and twenty-six firms were selected from a population of 2,141 firms representing thirteen industries. The three hundred corporations had an aggregate intangible asset and expense valuation of $1,370,000,000. Those companies cooperating with the survey had a comparable aggregate of $852,800,000. The total intangible costs subject to ultimate recovery from long run revenues, by all national businesses in 1957 would well exceed the figure of $5,000,000,000. This is, of course, equivalent to nearly 1.4 per cent of the National Income of that year. The findings clearly show that company policy, which is selectively discretionary, can affect reported net income by well above $2,000,000,000 annually. These estimates clearly impart the importance and significance of study and research into the area of intangible cost recovery methods. Such method selection can greatly affect the reported profit position of a firm, industry, or our whole economy.
- DOI
- 10.2308/tar-7098061
- Volume
- 37
- Issue
- 1
- Pages
- 96-98
- Language
- en
- Sources
- openalex crossref