Perfect Tournaments Inc. (PTI), a sports venue in Atlanta, Georgia that has gross sales of over $30 million a year, has added a check box to the registration form that allows it to retain sports statistics from all the games and as a result of the performance of all participants (players) who compete in its amateur tournaments. The rights do not cost the company anything; however, there is some debate as to whether acquiring and retaining this information offers value to PTI. The controller has asked for the advice of experts and believes that the current database of statistics would have a market value of no more than $1,000. There is speculation that at some point in the future, such statistical information may have some significant value but that is not currently the case. As a result, the controller has decided not to disclose the value of the information rights on the balance sheet or in the notes to the financial statements. Explain what may have guided his decision.

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The Answer of Perfect Tournaments Inc. (PTI), a sports venue in Atlanta, Georgia that has gross sales of over $30 million a year, has added a check box to the registration form that allows it to retain sports statistics from all the games and as a result of the performance of all participants (players) who compete in its amateur tournaments. The rights do not cost the company anything; however, there is some debate as to whether acquiring and retaining this information offers value to PTI. The controller has asked for the advice of experts and believes that the current database of statistics would have a market value of no more than $1,000. There is speculation that at some point in the future, such statistical information may have some significant value but that is not currently the case. As a result, the controller has decided not to disclose the value of the information rights on the balance sheet or in the notes to the financial statements. Explain what may have guided his decision.