company assigns the cost‚ where possible‚ to the identifiable tangible and intangible assets‚ with the remainder recorded as goodwill. 13. Goodwill is considered a master valuation account because it measures the value of specifically identifiable intangible assets. 14. Internally generated goodwill should not be capitalized in the accounts. 15. Internally generated goodwill associated with a business may be recorded as an asset when a firm offer to purchase that business unit has been received
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Introduction…………………………………………………………………………….....1 1.1 Relationship between Holding/parent company- subsidiary………………………….2 2.1 Consolidated Financial Statement…………………………………………………….4 3.1 The concept of Goodwill……………………………………………………………...5 3.1.1 Computation of Goodwill…………………………………………………………...6 3.1.2 Computation of negative Goodwill………………………………………………...7 4.1 The recommendation of the IASB……………………………………………………8 5.1 IFRS 36 Impairment of Assets………………………………………………………..9 6.1 IFRS 38 Intangible Assets…………………………………………………………
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Property Plant and Equipment Carrying amount of the Property‚ Plant and Equipment at reporting date of JB-HiFi According to AASB 116 Property‚ plant and equipment held beyond the normal operating cycle of entity are deemed to be non-current assets. Here’s the extract from the report. [pic] Descriptions: Carrying Amount of PPE is $163‚982‚ 000‚ which is made up of the figure of plant &equipment which is $106‚560‚000 add to the Leasehold improvements which is $57‚422‚000 come out as the total
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Questions 1. Intangible assets; concepts‚ definitions; items comprising intangible assets. 1‚ 2‚ 3‚ 4‚ 5‚ 6‚ 7‚ 8‚ 9‚ 10‚ 11‚ 12‚ 13‚ 14 2. Patents; franchise; organization costs; trade name. 9‚ 10‚ 13‚ 14‚ 25 3. Goodwill. 4. 5. Brief Exercises Exercises Concepts Problems for Analysis 1‚ 2‚ 3‚ 5‚ 6 1‚ 2‚ 3‚ 4 1‚ 2‚ 3 1‚ 2‚ 3‚ 4‚ 5‚ 7‚ 12‚ 13 4‚ 5‚ 6‚ 7‚ 8‚ 9‚ 10‚ 11‚ 13 1‚ 2‚ 3‚ 4‚ 6 1‚ 2 12‚ 13‚ 14‚ 18 6‚ 8 6‚ 12
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addresses Goodwill is 350-20 and the codification that addresses the other intangible assets is 350-30. To continue‚ according to codification 350-20-20 goodwill is‚ “an asset representing the future economic benefits arising from other assets acquired in a business combination or an acquisition by a not-for-profit entity that are not individually identified and separately recognized”. In addition‚ according to codification 350-20-35-1‚ “Goodwill shall not be amortized. Instead‚ goodwill shall be
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testing‚ goodwill associated with the Spanish operations impairs under GAAP as of 12/31/2010. The impairment loss is $200‚000. Under U.S.GAAP‚ goodwill impairment test is taken annually‚ or when there is impairment indicator. B. After the impairment testing‚ goodwill associated with the Spanish operations impairs under IFRSs as of 12/31/2012. The impairment loss is $400‚000. The new carrying value of the assets is $3.1 million. The new carrying value of the CGU is $1.8 million. Goodwill acquired
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accounting treatment of goodwill impairment/ detailed two-step impairment test – apart from qualitative assessment (1) if CV of reporting unit is > than FV of reporting unit‚ take step 2; if opposite‚ stop. (2) compare CV of goodwill w/ FV of goodwill; if CV is > FV‚ there might be potential impairment. CH4 -Determine the fair value of sub/the fair value of NCI – FV allocation; FV of sub = FV of CI + FV of NCI; go by mkt price if there is; use parent if there isnt -Determine goodwill using fair value
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IT Communication Fundamentals B1.1 & B1.3 Use a minimum of three examples of information: two from IT based and one from another source. Minimum of three different examples of copyright. There are many examples of electronic and paper based information on their sources. Internet news sites such as BBC provide daily global information whilst reference and research sites such as Wikipedia and GOV (UK government) offer information on a range of topics‚ from general interest to education‚
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ANSWERS TO QUESTIONS Q4-1 The carrying value of the investment is reduced under equity method reporting when (a) a dividend is received from the investee‚ (b) a differential is amortized‚ (c) an impairment of goodwill occurs‚ and (d) the market value of the investment declines and is less than the carrying value and it is concluded the decline is other than temporary. Q4-2 A differential occurs when an investor pays more than
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Learning Exercise 7: Impairment of PP&E; Intangible Assets; & Goodwill (25 points) (Solutions) Problem 1 Bateman Company purchased a convenience store building on January 1‚ 2007‚ for a 6‚500‚000. The building has been depreciated using the straight-line method with a 20-year useful life and 5% residual value. As of January 1‚ 2013‚ Bateman has converted the building into an Internet Learning Center where classes on Internet usage will be conducted six days a week. Because of the change in the
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