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T-Mobile: How allocate their intangibles over the periods?

Company: T-Mobile

Describe the accounting this company uses to allocate the cost of that asset to the periods benefited from its use. Assets that this company must account for is natural resource; patent; lease; leasehold improvement; copyright; trademark; or goodwill.

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Company identified: T-Mobile

Asset identified: Intangibles

I investigated the types of intangibles that T-mobile might have. It turns out that T-Mobile is fully owned by a foreign company, Deutsche Telecom. So, I got the SEC filed reports of the parent company. I was able to get these since they trade on the NYSE and so they are required to file financial reports.

I could review the balance sheet of Deutsche Telecom and see what kinds of assets they have that fall into the category you are needing. That is, natural resource; patent; lease; leasehold improvement; copyright; trademark; or goodwill. I found intangibles but none of the other assets. Therefore, the decision about which to pick was easy ...

Solution Summary

Your tutorial is 368 words and two references and explains how Deutsche Telecom (T-mobile's owner) amortizes the spectrum licenses (intangibles) cost in the period in which those licenses bring in customer revenues.

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