Asset acquition

[Reshma kochar]

We are considering to acquire fixed assets of a company. We are paying more than its book  values(Fixed assets). My doubt is that we cannot recognize goodwill as its not a amalgamation or merger. Moreover we are paying a one time transfer fee also for its say employees or whatever. We want to capitalise the amount in form of a intengible ( not goodwill) .What it could be?

AI Summary

Excess Payment in Asset Acquisition: Not Intangible Assets Under AS-10 in Non-Merger BOT Agreements A discussion on asset acquisition involves a company planning to purchase fixed assets at a price exceeding their book value. The initiator questions whether the excess payment can be recognized as intangible assets, excluding goodwill, since the transaction is not a merger or amalgamation. A respondent clarifies that according to AS-10, the cost of fixed assets includes purchase price and directly attributable costs, but the excess cannot be treated as intangible assets. The initiator further explains the transaction is under a BOT agreement and seeks advice on classifying the excess payment as intangible assets like business contracts or human resources value.