4.9 Assets That the Acquirer Does Not Intend to Use, or Intends to Use in a Manner Other Than Their Highest and Best Use
ASC 805-20
Assets That the Acquirer Intends Not to Use or to Use in a Way Other Than Their Highest and Best Use
30-6 To protect its competitive position, or for other reasons, the acquirer may intend not to use an acquired
nonfinancial asset actively, or it may not intend to use the asset according to its highest and best use. For
example, that might be the case for an acquired research and development intangible asset that the acquirer
plans to use defensively by preventing others from using it. Nevertheless, the acquirer shall measure the
fair value of the nonfinancial asset in accordance with Subtopic 820-10 assuming its highest and best use by
market participants in accordance with the appropriate valuation premise, both initially and for purposes of
subsequent impairment testing.
Unless a specific recognition or measurement exception applies, all tangible and
intangible assets must be recognized and measured at fair value by using the
guidance in ASC 820, even if the acquirer does not intend to use the asset or
intends to use it in a manner other than its highest and best use. Such assets are
often intangible rather than tangible assets, but the requirement to measure them at
fair value is the same. See Section 4.10.4.8 for information about defensive intangible
assets.