Hello mam,
Can you please explain to me how is it appropriate to recognize the royalties as assets what exactly is happening here im confused
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Bassett group m/j 18 kaplan kit- Aurhor royalty
5y ago#1They are just payments in advance - so prepayments. In principle, it doesn't matter what an advance payment is for - goods or services - whoever pays a deposit (it doesn't matter what it is called) will consider it an asset (rather than expense) because they have a contractual right to something in return.
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