ABC is a company of the film industry. The firms strategy is to diversify its services and customer base. Management plans to establish a home-entertainment division. The firm realizes that it will need to recruit high-profile employees in order to develop the new division. The firm has made offers of employment to four individuals, who accepted the offers. The contracts are for a four-year period and include high sign-on bonuses. The contracts do not provide any reimbursement if the employee leaves during the term of the contract. The entity has decided to recognize the sign-on payments as intangible assets