Savvy Trades and Investments

[SSKILLZ1]

I never said that, it should be expensed as part of the cost of the acquisition immediately and be seen as a one time cost and added back in adjusted earnings that quarter. in my world there are no intangible assets of course you have to expense it. They are worth 0 the minute you put them on the balance sheet. I see it as a one time cost or expense in an acquisition.

I see intangible assets as a way to make the balance sheet look better than it really is and the income statement on a gaap level has a fictional expense quarter after quarter over a made up period to amortize an expense that should have been taken on day 1 as deal costs and a hit too book value immediately. If we do that we are not making up fictional non cash expenses, and we are not making the balance sheet look much better than it really is. it is really that simple. In reality if there were no intangible assets and everything was expensed right from the beginning financial statement would be much better off in my opinion. Of course I think people should ex those one time expenses out in adjusted earnings that quarter.

Think about what amortization is a non cash expense on and asset that you will not replace. In theory a piece of equipment when we take depreciation is eventually gonna fail and we are gonna need another one hence why it makes sense as a gaap expense. I don't here companies thinking I need to replace those intangible assets. All is just my opinion, and I could always be wrong though.