I am having trouble conceptually understanding the last question: “The amount of customer acquisition costs”.
Can someone please walk me through the thought process when analyzing the change in intangible assets to arive at the acquisition cost?
Thanks!
Its similiar to How you would go from Beginning Net PPE to Ending Net PPE
Beg. Net PPE + CapEx (including any acquisition) - Depreciation -/+ Writedowns/Reversals = Ending Net PPE
Except this time you have intangibles (no hard assets).
Beg Intangibles + Any customer acq. cost (it is capitalized since after a company invests in acquiring a cable/cell phone customer that subscriber is expected to provide steady revenes over few years). + Other intangible acquisition - Amortization -/+ writerdowns/reversals = Ending intangibles
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.