Biggest threats to PRT, page-6

Dear Wing it:
Unlike real property, the licences fees are intangile assets. When I calculate PB ratios, I usually discount intangible assets as It can be written down at any moment. My understanding is that the lisence fees are an outgoing expense, paid to the goverment, just like interest payment to lenders. Interest payments can be capitalised to form part of trading stocks' cost base. When a company choose to capitalise interest payment, the interest payment are recorded as assets, which makes their balance sheet looks better. But the fact is the money is spent and gone, like utility payments. Those free to air broadcasters all have negative assets when the spent lisences fees are taken out from their balance sheets. I do hold shares in this company but just have some doubts on the way they record licence fees as assets instead of expense. Many thanks for anyone who can clarify this.