Technology in Financial Statements

[epalan11]

Why is it that my Asset does not increase after Technology research, specifically my intangible asset. Its always zero.

Another question is, I notice that whenever I acquire tech from other company, my expenses gets overstated. Money used for acquiring technology goes to expense, overstating my expenses. I think that this shouldn't be the case. Acquiring technology is not part of the operating expense. Instead, this should be debited to your assets as an intangible asset since this is long term and not part of the operations. I'm really not sure how this is done, like in the real world. It's just that I think what I just said makes sense. I think I read this somewhere

Just correct me if I'm wrong.

[David]

Why is it that my Asset does not increase after Technology research, specifically my intangible asset. Its always zero.

You may see the details from the CapLab web page about this feature: http://www.capitalismlab.com/intangible ... ology.html

Intangible Asset: Technology
The company Balance Sheet now has a new asset item called “Intangible Asset: Technology”

This gives the tech company a fair market value and allows it to raise funds for continued R&D efforts via issuing new issues.

How the value of Intangible Asset: Technology is determined:

Part A)

If the company possesses a technology equal to or higher than the current top technology on the market (as seen on the “Top Tech.” column on the Corporate Detail Report – Technology page), then the calculation is as follows:

Value of Intangible Asset: Technology = <a constant amount> x (The company’s tech level – top tech) / top tech

Part B)

For new inventions that have not yet been introduced to the market as products:

Value of Intangible Asset: Technology = <a constant amount> x (number of years it takes to invent the product using a single R&D unit)

These values will decline or vanish when other companies also started selling products using the new technology.

[counting]

Usually not just trade secret and patents are listed as intangible assets in real life corporation, trademark is also a big part of it, so maybe brand should be considered part of the intangible assets in the game, after all you spend a lot of money in advertising to gain it.