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ANSWER IN YOU OWN WORDS! Don’t forget to provide references

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ANSWER IN YOU OWN WORDS!

Don’t forget to provide references .

Thank you.

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Assume a parent acquires a subsidiary that has a five-year agreement to supply goods to a customer.

Both the parent and the subsidiary believe that customer will renew the agreement at the end of the

current contract. The agreement is not separable. Can the parent recognize an intangible asset related

to the agreement? (Hint: Examine FASB ASC 805-20-55.)

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Assume a parent company acquires a subsidiary that has a portfolio of one-year auto insurance

contracts that are cancelable by policyholders. Can the customer relationships be identified as an

intangible asset? (Hint: Examine FASB ASC 805-20-55.)