USA Can a golf club membership be an intangible asset?

[yong8]

Hi,

A corporate purchased a non-refundable golf club membership that costs $80,000 initiation fee and the contract amount is $300,000. The membership has indefinite useful life and is for the business purpose.
I'm wondering if the membership can be the corporate's intangible asset and be recorded on the balance sheet?
I've searched for the criteria for intangible assets and I couldn't find.

 

[bklynboy]

At best its a capitalized expense but that could be a stretch - we expense these type of memberships as they are paid.

 

[kirby]

Note that some memberships are what are called "equity" memberships and do have a "sale" value. So you may need to inquire more, with the approval of mgmt before doing this so you don't "step on any toes" just by asking.

 

[Fidget]

I guess this depends upon what you mean by "is for the business purpose". If it's essential for core activity of the business, then it would possibly qualify. If it's for business image in entertaining current/prospective clients/customers, then it won't qualify in much the same way that expenditure on advertising doesn't qualify for being capitalised as an intangible.