The other major part of Eagle’s business that we must investigate for Eagle’s future is the impairment of cash generating unit (CGU) in Serbia to do this we must look at the goodwill and determine if it has been impaired under IFRS and U.S. GAAP. To do so we must compare the carrying amount of the unit‚ including the goodwill‚ with the recoverable amount of the unit. If the recoverable amount of the unit
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Goodwill for Impairment CLAUDIA Inc. has an internally generated goodwill and did not amortize or tested for impairment. They cannot amortize because measuring the components are complex and associating the costs incurred with future benefits are too difficult. Goodwill cannot generate cash flows independently and is made as a combination with other assets making up a business; it needs to be assigned to a reporting unit or cash-generating unit in order to test for impairment. Under ASPE‚ the impairment
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issued Statement No. 121 "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of". The statement established accounting standards for the impairment of long-lived assets‚ certain identifiable intangibles‚ and goodwill related to those assets to be held and used. The statement also established accounting standards for the disposal of long-lived assets and certain identifiable intangibles. (fasb.org/stsum121) However‚ shortly after Statement 121 was released numerous
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Intangible Assets: Intangible assets consist of items that are not tangible or in other words‚ are not able to be touched or seen even though money may have been paid to purchase them. Some common examples include Goodwill‚ Patents‚ Copyrights‚ Trademarks‚ Organization Costs‚ and Loan Fees. These intangible assets can be developed over a period of time by building up customer lists or by investing money into them or they can be purchased from another individual or entity. Types
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tangible asset backing per share (NTAB) * Provides an indication of the book value of the entity’s tangible assets (as reported in the balance sheet) per ordinary shares on issue * Intangible assets‚ such as goodwill‚ are excluded from calculation due to the lack of identifiability (goodwill) or marketability Earnings per share: Profit available to ordinary shareholders/ weighted no. Of ordinary shares on issue= x cent/share Operating Cash Flow Per Share: Net cash flows from operating activities-Preference
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Consolidation and IFRS: an introduction Academic year 2010/2011 Patrice Schumesch Sebastian Harushimana Table of contents (1/4) Introduction - Why IFRS ? - General principles Measurement of assets and liabilities - Formation expenses - Intangible assets - Property‚ plant & equipment - Leases - Impairment of assets Slide 2 Consolidation and IFRS: an introduction Table of contents (2/4) Measurement of assets and liabilities (cont’d) - Government grants - Inventories and
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Pros and cons of mergers and business transfer Pros and cons of mergers and business transfer There are many ways of acquiring a business. Among them‚ there are mergers and business transfer that convert two different companies into a company‚ and comprehensive stock exchange and share acquisition allows for the acquisition of management control of other companies without changing the legal entity. To summarize the concept of mergers and business transfer: first‚ the merger is a method of amalgamating
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AMALGAMATION‚ ABSORPTION & RECONSTRUCTION 1. Method to calculate Purchase Consideration: |Net Asset method |Intansic value method |Net payment method | |Agreed value of |MV of total assets xxx |Amalgamation in nature of: - | |assets taken over xxx |Less: MV of total Liab. xxx |Merger: Amount paid to Equity shareholders|
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Research and development expense in the income statement. 7. Charge as expense in the income statement. 8. Operating losses in the income statement. 9. Charge as expense in the income statement. 11. Not recorded; any costs related to creating goodwill incurred internally must be expensed. 12. Research and development expense in the income statement. 14. Research and development expense in the income statement. 18. Research and development expense in the income statement. 20. Research
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Innovation is also very important to Goodwill Industries. “Innovation is the introduction of new goods and services” (Bateman and Snell‚ 2011‚ p. 9). While Goodwill Industries is distributing goods that are used‚ the services that are being offered are innovated. Goodwill has been improving the lives of many people by selling used goods at discounted rates and offering “job skills training and placement” (Social Media in Action: Goodwill Industries‚ 2011). Now Goodwill is networking to improve through
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