ch5 Key 1. On November 8‚ 2009‚ Power Corp. sold land to Wood Co.‚ its wholly owned subsidiary. The land cost $61‚500 and was sold to Wood for $89‚000. From the perspective of the combination‚ when is the gain on the sale of the land realized? A. Proportionately over a designated period of years B. When Wood Co. sells the land to a third party C. No gain can be recognized D. As Wood uses the land E. When Wood Co. begins using the land productively Difficulty: Easy Hoyle - Chapter 05 #1 2. Edgar
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the balance sheet in order to calculate ROI‚ROA and the calculate debt to equity to ratio . 3. Calculating the ratio bank will be able to determine the interest rate on the loan. 4. A positive amount reported on the balance sheet determines the goodwill of the company which allows the bank to process loan on good faith terms. 2. SHOULD THE INTELLECTUAL ABILITIES BE REPORTED AS AN ASSET?(4 MARKS) No .The Intellectual abilities is not an tangible asset which can be reported .There are no measurements
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ACCT3563 Issues in Financial Reporting & Analysis Semester 1 – 2010 Version 0.5.0 1st April 2010 Contents Page 3 Page 7 Page 12 Page 17 Page 20 Positive Accounting Theory Ethics in Accounting Accounting for Physical Assets & Intangible Assets Accounting for Assets in Mining & Agricultural Industries ounting Accounting for Provisions Copyright © Ka Hei Yeh 2010 Fifth Revision published April 2010 2010. This work is licensed under the Creative Commons Attribution Attribution-Non-CommercialNo
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Running head: Similarity and Difference Similarities and Differences Comparisons between the iGAAP and U.S. GAAP There happens to be important resemblances and dissimilarities between International GAAP and the United States GAAP in the accounting for intangible assets. Resemblances as well as dissimilarities should not come at a surprise to the accounting profession. U.S. GAAP compared to any other entity has similarities and differences‚ so therefore the iGAAP is no different. It is estimated
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these "fair values” becomes goodwill‚ which Blockbuster labels "intangible assets relating to acquired businesses." APB Opinion 17 requires that goodwill be amortized to income (expensed) over 40 years or less. In the past‚ many companies automatically adopted 40 year amortization. Current practice (which is usually required by the SEC) is to relate the amortization period to the nature of the business acquired. Thus in a typical hi-tech acquisition the SEC requires goodwill to be amortized over 5 to
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V O L U M E 1 7 | N U M B E R 4 | FALL 2005 Journal of APPLIED COR PORATE FINANCE A MO RG A N S TA N L E Y P U B L I C AT I O N In This Issue: Executive Pay and Corporate Governance Pay Without Performance: Overview of the Issues A Remedy for the Executive Pay Problem: The Case for “Compensation Discussion and Analysis” Developments in Remuneration Policy Corporate Culture and the Problem of Executive Compensation Taking Shareholder Protection Seriously? Corporate Governance in the U.S
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cannot not be seen‚ touched or physically measured‚ which are created through time and/or effort and that are identifiable as a separate asset. Corporate intellectual property (items such as patents‚ trademarks‚ copyrights‚ business methodologies)‚ goodwill and brand recognition are all common intangible assets in today’s marketplace. Intangible assets have 3 critical attributes which are: • Indetifiability. This means that they must be capable of being separated from the rest of the company and
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Applicability of Accounting Standard (AS) 26‚ Intangible Assets‚ to intangible items 1. Accounting Standard (AS) 26‚ ‘Intangible Assets’‚ came into effect in respect of expenditure incurred on intangible items during accounting periods commencing on or after 1-4-2003 and is mandatory in nature from that date for the following: (i) Enterprises whose equity or debt securities are listed on a recognised stock exchange in India‚ and enterprises that are in the process of issuing equity or debt
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reflected in a consolidation workpaper to prepare a consolidated balance sheet immediately after the business combination is: A. $0. B. $25‚000. C. $70‚000. D. $45‚000. 2. Based on the preceding information‚ what amount should be allocated to goodwill in the consolidated balance sheet‚ prepared after this business combination? A. $0 B. $25‚000 C. $70‚000 D. $45‚000 On December 31‚ 2009‚ Add-On Company acquired 100 percent of Venus Corporation’s common stock for $300‚000. Balance sheet information
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Compiled AASB Standard AASB 138 Intangible Assets This compiled Standard applies to annual reporting periods beginning on or after 1 July 2009. Early application is permitted. It incorporates relevant amendments made up to and including 25 June 2009. Prepared on 30 October 2009 by the staff of the Australian Accounting Standards Board. AASB 138-compiled 2 COPYRIGHT Obtaining Copies of Accounting Standards Compiled versions of Standards‚ original Standards and amending Standards (see Compilation
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