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Essay: Objective of SFAS 142 | Term Paper Queen

Sample Essay

The objective of the new standard is to make the accounting treatment of intangible assets more consistent with other standards and to make the presentation of financial statements more transparent. On close study it can also be found that the objective of this standard is to develop uniformity between the life of the intangible assets and the periods of cash flows used to calculate the value of these assets (Reynolds American Inc).

This means the consistency between SFAS 142 and SFAS 141. As discussed earlier another objective of the standard is the consistency between the calculation, recording and amortization of intangible assets with the truthful representation of data.

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