The word “cash” represents the monetary instruments (currency etc.) and the word “book” represents the record available in written format. Thus, a cash book can be defined as the record of business transactions in a particular period.In other words, a cash book records all transactions of cash receipts and disbursements ... Read More

Contingent asset is that asset for a company, which has future economic benefit. This means that the asset may arise in future based on contingent events, which the company has no control over.Company discloses this type of asset, when an income flow is probable. Reasons for not recognizing this as ... Read More

Horizontal integration is a process when a company acquires/merges/takes over another company, who are in the same product line or its competitor.Company will go for horizontal integration to increase its size and capacity, to reduce its risk and competition, increase its market share and to expand its geographical area.ReasonsThe reasons ... Read More

In simple words a patent is nothing but securing an invention and copyrights are nothing but securing original ideas. Both are governed by different rules and regulationsCopyrightsThe main objective of copyright is to secure the original idea or expression of idea of an artist. An artist's work can be a ... Read More

Copyright and trademark comes under intellectual property. Although both look the same, sometimes it creates confusion in the readers' mind. Let us give brief idea about copyright and trademark and difference between themCopyrightThe main objective of copyright is to protect the artist's original work. Work may be a photo, book, ... Read More

The term property means an individual or an organization owns it and it is protected by means of law. Intellectual properties are intangible assets of a business or a person. It can be a book, article in a magazine, a new design etc. which comes under intellectual properties.TypesThe types of ... Read More

Intellectual property rights give right to the persons over their inventions, literary works, etc. Rights for their creations have a timeframe. The right for protection is outlined in the universal declaration of human rights (Article 27).Importance of intellectual property was recognized in the Paris convention for protection of industrial property ... Read More

Intellectual property is a type of intangible asset owned by a company and it is legally protected from outside use without company consent.In other words, intellectual property is an asset, which has the same protective rights just like a physical asset. It includes patents, copyrights, trademarks, trade secrets etc.Intellectual property ... Read More

In market approach, valuation of business (intangible assets, ownership interest, etc.) are determined based on market price of similar assets/business that are sold in recent times/available in market.Sales, book value and P/E (price to earnings) are used as price indicators. After comparing with similar assets/business adjustments to qualities, quantities and ... Read More

Cost approach has natural appeal. If merger/acquisition of two or more companies takes place then, new company value is the difference between asset and liabilities of its combined value.This analysis has similarities to the balance sheet. In this, the cost basis balance sheet is converted to required value. This approach ... Read More