Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures CGIFF

RE:RE:RE:Kherson,,,,,,,,RE: Intangible Assets............

[quest13]

Yes intangible assets are usually made up of many intangible assets of relatively small value and Goodwill which boils down to the ecess of purchase price of a business purchased from another company at some time in the past. Patents of course are not necessarily small value in a pharaceutical or technology company.

there is a fact that goodwill is simply the fact that customers like (for whatever reason) buying from the acquired business and will continue to buy from often paying a few extra dollars which means the profit from the business will be somewhat higher than otherwise.

there are many rules for valuing goodwill but essentially the company's accountants (CRA, including the company's auditors and others judge them ); but essentially the company's accountants must pass what I call the "Red Face" test in deciding what value should be retained or written down, and justified to outside parties. You can think of many, no longer in business, companies which could not pass that test. Enron is a good example of how a business suffers.

as a company continues to generate cash it must be judged whether it is more than can be attributed to the bricks and mortar etc. of its tangible assets. Goodwill does often decrease in value over time and ends up being decreased in value by the accountants. It can also increase in value as well; but accountants are generally conservative and it is not often judged to be higher unless another company buys them at an increased price

In sum the accountants pass judgement on the value to be shown on the statements and the auditors pass judgement on the accountants before issuing a clear audit report. Thereafter the government and the markets judge the company