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Buying an intangile asset. $xxmm up front (capitalized) and $2k per quarter until a certain milestone is reached. The length to the milestone is estimable. How do I account for the quarterly payments? Should that stream of payments be PV'd?

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Ben Pieters
Title: Principal Consultant
Company: Pieters | Associates
(Principal Consultant, Pieters | Associates) |

Accounting systems reflect actual costs. On this basis the capitalised up-front payment and the quarterly maintenance payments are accounted for the cost you incur or paid. You may use a PV approach when preparaing a report to management to reflect the RoI at current values.
Regards

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