Technology in Financial Statements
Posted: Mon Jun 30, 2014 3:06 pm
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.
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.