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March 14, 2024
Question

Can I book a 3rd party license valuation?

  • March 14, 2024
  • 1 reply
  • 0 views

We are a privately held corporation and have acquired a couple of licenses that allow us exclusive right s to market and/or manufacture certain technologies.  As a result we had a 3rd party evaluation done to determine corporate value of share price.  My CEO wants to insert that license value onto the balance sheet, but i cannot see where there are any GAAP entries to do this.  Is this valuation a footnote to the financials or is there a GL entry I can make to accomplish this that won't create a taxable situation?

1 reply

BigRedConsulting
March 19, 2024

I don't think anyone here can know for sure how you should treat the licenses.

 

Still, if they have actual marketable value then it seems they should be tracked as assets.

 

What do you mean by "GAAP entries"?