296 – Other Non-Automotive Assets/Intangible Assets

Other Assets

 

Synopsis

Account 296

Debits

Credits

  1. The cost of assets acquired for which specific accounts are not provided elsewhere in this manual, including assets not used in the automobile business.

  1. Any provisions for depreciation of assets in this account.

  2. The book value of assets sold or otherwise disposed of.

  3. Write-down of securities to market value.

 

Remarks:

This account would include such investments as: securities not readily marketable (stock or bonds), real estate not used in the business, club memberships, subsidiary, or affiliated enterprises, purchasing cooperatives, capitalized organization expenses, Goodwill/Blue Sky, and deposits on contracts.

 

Complete details describing these assets should be noted in this account or in a suitable subsidiary record.  The cost of assets should include additional items such as expenses incidental to securing title, installation and construction costs, freight, and sales tax.

 

Income and expenses relating to these assets should be recorded in Additions to Income – Other (Account 805) or Deductions to Income – Other (Account 855), as applicable.

Note: