Question

Explain the different categories of intangible assets and document the method used for each of the three companies(Pepsi,Coca-Cola and Dr Pepper).

Answer 1

Refer to the below images for the above mentioned question, in a detailed way of explanation.

Requirement : Explain the different categories of assets and document the method used for each three companies (Pepsi, Coca-cola and BN pepper). intangible of the Answer: Different categories of intangible assets - Goodwill - patents - copyrights - trademartes anot * designs and Goodwill usually results from taking over (or) acquiring their assets patents give companies rights to innovative solutions Trademarks give companies to visual symbols Such as trade dress. ofo brand * rights to creative and intellectual give companies Copyrights works. Method used for each of the three companies: * Dr Pepper classities intangible assets into two types: i Intangible assets with definite lives subjer to amortization ii) Intangible assets with indefinite lives not subject to amortization. The majority of the company's intangible assets balance is made up of brands which the company has determined to have indeknite useful lives.

* pepsi company property, plant is equipment is recorded at historical cost.. coca cola according to the United States and Securities Exchange Commission for the annual impairment analysis of goodwill, The company develops an estimated fair value for reporting unit considering 3 different approaches: i) Discounted cash flow analysis " Market value [using the company's stock price & outstanding debt] Til) multiple of earnings before interest, taxes, depreciation and amortization based upon relevant data .