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Essay Details:
Essay text:
In this case, the company treats its reacquired franchise rights as intangible assets that have limited lives.
2. Rewards Network Inc. (11-14-2002):
The company classifies franchise rights to goodwill. Because according to SFAS Nos. 141, which indicates that intangible assets not specifically identified and inseparable from the business as a whole (SFAS 141). Most of its business combination is reacquiring franchising rights. In 2002, the company decides that reacquired franchise rights can no long be separable from goodwill by the new standard. The rights are not amortized (SEC Government, 2002, para 7)...
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