This guidance deals with companies and not individuals / partners.

Sales or acquisitions of businesses are likely to include the transfer of goodwill and / or other intellectual property (IP).

Intangible fixed assets (IFAs) are assets which are defined as intangible assets under GAAP, which have a continuing use in the company’s trade. For accounting periods starting on or after 1 January 2015, companies must account for intangibles under either IFRS or FRS 102. The definition of intangible assets (other than goodwill) in FRS 102 is “identifiable non-monetary asset without physical substance” where ‘identifiable’ is an asset that is separable or arises from a legal contract or other legal right. Under FRS 102, goodwill is recognised at cost, being the excess of the cost of the business over the acquirer’s interest in the net amount of identifiable assets, liabilities and contingent liabilities. The definition under ‘old’ UK GAAP was in FRS 10 (Goodwill and Intangible Assets).

This guidance considers some of the relevant