Consideration is given to why both fans and taxing authorities seem to be obsessed with sports franchise transactions. Both the financial accounting and income tax accounting rules associated with sports franchise purcfhance price allocations are summarized. Many of the relevant intangible assets are decribed. With regard to transaction purchase price allocations, sports franchises are generally subject to different basis/amortization tax rules than most other businesses. Sports franchises also have relatively unique intangible assets. SFAS 141 and 142 provide GAAP guidance with regard to purchase price allocation accounting. Several sports franchise intangibles are related to employees. The franchise workforce's value generally encompasses that of the organization's trade secrets; for instance, they may have developed specialized systems and procedures related to accounting, administration, player therapeutic procedures, and even player development.
This digital document is an article from The CPA Journal, most recently published by New York State Society of Certified Public Accountants on October 31, 2003. The length of the article is 3131 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
Citation Details Title: Sports franchise acquisitions: Purchase price allocation procedures. Part 1 of 2
Author: Robert F Reilly
Publication: The CPA Journal (General Information)
Date: October 31, 2003
Publisher: New York State Society of Certified Public Accountants
Volume: 73
Issue: 10
Page: 62-65
Distributed by ProQuest Information and Learning
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