Savvy Trades and Investments

[researcher59]

So if company A internally develops an intangible asset such as software or a drug patent at an expense of $10M, of course it gets fully expensed through the course of development. Company B pays $10M in cash for a similar intangible asset. The cash outflows are the same yet company B never has to expense a penny because amortization of intangibles is not an expense ? But company A has to fully expense the $10M ? Hmmmm. An interesting accounting sleight of hand.