Uses and Situations

T. H. Donaldson
Additional contact information
T. H. Donaldson: J. P. Morgan

Chapter 5 in The Treatment of Intangibles, 1992, pp 77-115 from Palgrave Macmillan

Abstract: Abstract We have talked so far about accounting treatment of intangibles, and about values in normal conditions, with a passing bow to the impact made by the threat of insolvency. This chapter will talk about how intangibles affect non-accountants, mostly banks but also investors and trade creditors. Partly this means how to adjust to the present inadequacies of accounts; how to assess the value of intangibles to each bank, investor, etc. and how to allow for them in decisions they make about their business with or ownership of the company concerned. It will discuss how banks should adapt covenants in loan agreements to the existence of intangibles, and how different types of brand name may affect this process. And a later section will talk about the impact of insolvency, or the threat of it, on the value of various types of asset, tangible and intangible. In some cases the threat of loss of value in insolvency will help to avoid insolvency, adding to the value to people who would suffer most in liquidation; in others, the same factors which cause the insolvency will undermine the value of the assets; in yet others it will be the loss of value itself which causes the insolvency.

Keywords: Cash Flow; Balance Sheet; Trade Creditor; Intangible Asset; Tangible Asset (search for similar items in EconPapers)
Date: 1992
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-22484-5_5

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349224845

DOI: 10.1007/978-1-349-22484-5_5

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().