How to record domain name acquisition
Recording the purchase of a high-value internet domain name from a secondary market.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Intangible Assets - Domains | Asset | 3,500.00 | - |
| Cash | Asset | - | 3,500.00 |
💡 Accountant's Note
Domain names are treated as intangible assets. If they have an indefinite life, they are not amortized but tested annually for impairment.
Practitioner & Systems Framework
💻 ERP Architecture
Assign to a non-amortizing asset category if the domain is expected to have an indefinite useful life.
⚠️ Audit Flags
Failure to distinguish between annual registration fees (expense) and the initial purchase price (asset).
📄 Required Documentation
Domain transfer record (WHOIS update), purchase receipt, and board approval for high-value acquisitions.
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