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Topic: Business
Number of pages / Number of words: 4 / 866
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Therefore, net asset generally has greater value than tangible assets. Krispy Kreme calculates franchise rights by reducing only tangible assets, and yields to a greater amount of intangible asset. Like goodwill, the excess of the net amount assigned to identifiable assets and liabilities by acquisition of franchise markets does not have to be amortized (SFAS Ns...


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142).

c. For Krispy Kreme's reacquired franchise rights, impairment occurs when the assets' fair value is less than the cost recorded. There are different ways this can happen. For example, if the company has a property damage, which result in decreasing in the company's overall asset value; decline in business which leads to the company's decrease in fair market value, or market values of property decrease can all lead to impairment of the assets...


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