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Definition of 'Identifiable Asset'
An asset of an acquired company that can be assigned a fair value and can be reasonably expected to provide a benefit for the purchasing company in the future. Identifiable assets can be both tangible and intangible assets.
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Investopedia explains 'Identifiable Asset'
If an asset is deemed to be identifiable, the purchasing company records it as part of its assets on its balance sheet. If an asset is not deemed to be an identifiable asset, then its value is considered part of the goodwill amount arising from the acquisition transaction.
For example, suppose ABC conglomerate company purchases both a smaller manufacturing firm and a smaller start-up internet marketing company. The manufacturing company would likely have most of its value tied up in property, equipment, inventory and other physical assets, so virtually all of its assets would be identifiable. The internet marketing company, on the other hand, would likely have very few identifiable assets, and its value as a company would be based on its future earnings potential. As such, the purchase of the marketing company would generate a lot more goodwill on ABC's books, because it would gain few identifiable assets from the marketing company.
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Search results for 'Identifiable Asset'
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http://www.investopedia.com/exam-guide/cfa-level-1/assets/computing-capitalizing-expensing.asp
... to LIFO; 8.10 Effects of Inventory Accounting; 8.11 Causes a Decline in LIFO
Reserve; 8.12 Long Term Asset Basics; 8.13 Depreciation ...
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http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-assets.asp
... to LIFO; 8.10 Effects of Inventory Accounting; 8.11 Causes a Decline in LIFO
Reserve; 8.12 Long Term Asset Basics; 8.13 Depreciation ...
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http://www.investopedia.com/articles/fundamental-analysis/11/accounting-intercorporate-investment.asp
... paid over and above the book value of the investee's identifiable assets ... below the
recorded balance sheet value (and is considered permanent), the asset must be ...
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http://www.investopedia.com/exam-guide/cfa-level-1/assets/natural-recource-assets.asp
... to LIFO; 8.10 Effects of Inventory Accounting; 8.11 Causes a Decline in LIFO
Reserve; 8.12 Long Term Asset Basics; 8.13 Depreciation ...
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http://www.investopedia.com/exam-guide/cfa-level-1/assets/capitalizing-intangible-assets.asp
... to LIFO; 8.10 Effects of Inventory Accounting; 8.11 Causes a Decline in LIFO
Reserve; 8.12 Long Term Asset Basics; 8.13 Depreciation ...
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http://www.investopedia.com/articles/economics/10/the-myth-about-bubbles.asp
... But all bubbles are identifiable, and the process described in the paragraph above
is not ... They can sell of lot of the bubbling asset for substantial gains, and ...
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http://www.investopedia.com/articles/stocks/08/overtrading.asp
... These are all classic, easily identifiable signs of hair-trigger trading. ...
First, true diversity is spread over multiple asset classes. ...
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