Where "patents" add or less in financial accounting?

1 ⤊

Where "patents" add or less in financial accounting?

Where i suppose to add "patents" if in Balance sheet then where (in current asset)?????

2006-09-15 05:19:37 · 2 answers · asked by fahadbaba1 1 in Business & Finance ➔ Other - Business & Finance

2 answers

Patents are an intangible - as such they are not a current asset.

They are intangible and usually listed below fixed assets (they are the least liquid asset type)

Hope that helps.

2006-09-15 05:27:19 · answer #1 · answered by p_rutherford2003 5 · 1⤊ 0⤋

A patent is a protection device for a product or service you have invented or made so that nobody can steal your idea and reproduce it. It is something you apply for and register and there is a cost associated in doing so therefore it is a cost/expense so I think it should be a part of your manufacturing expense.

2006-09-15 12:29:03 · answer #2 · answered by Nico W 1 · 0⤊ 0⤋