Philip Morris Pakistan is beginning to feel a financial pinch‚ and is already reducing the scale and scope of some of its manufacturing operations inside the country. In a statement released to the press on Saturday‚ the company announced that it will be reducing the operations in its smallest factory‚ located in Mandra‚ near Rawalpindi. The company cited “difficult economic conditions” including high taxes and low consumer purchasing power as a primary reason for the decision. The decision was
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company located in Spain‚ and the acquisition resulted in goodwill being recorded. Assume that (1) the activities in Spain represent the lowest level at which internal management monitors goodwill and (2) the Spanish operations represent CGU under IFRS and reporting unit under U.S. GAAP. At the end of 2009 under GAAP and IFRS the recoverable amount of the asset including goodwill exceeded its carrying amount‚ suggesting that the goodwill allocated to the Spanish operations was impaired. At the end
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Oil Industry Steven Gomez Management for Organizations Professor Shah 07/08/2011 The oil companies of today’s societies are bigger than from the past and have been making the news worldwide. These companies have been growing and trying to lease more property across the country in order to keep making money. “While the oil and gas industry argue that for expanded access to federal land‚ they sit on over 29 million acres of unused federal oil and gas leases.” (Elizabeth Lopez‚ Hill
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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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months. Also included in capitalization‚ but with an eighteen month amortization period‚ were so-called “bundling costs” for co-marketing efforts with magazine publishers and PC producers. These time frames for amortization were well known in the industry‚ even if they were controversial. But then in July 1995‚ the periods for both marketing categories were increased to 24 months‚ and that
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Week 3: Accounting for Intangible Assets Introduction Change from a manufacturing to a “knowledge based” industry Increase market to book gap Intangible Assets play a major role Assets: Definition * Resource controlled by an entity as a result of past events from which future economic benefits are expected to flow to the entity Assets Recognition Criteria * Recognition Criteria * Under AASB Framework (par 89) an asset is to be recognised in the balance sheet only when * It
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Introduction to intangibles • 2. Identifiable intangible assets • 3. Measurement of intangible assets subsequently to initial recognition • 4. Disposal/ retirement of intangible assets 2 Contents Contents • 5. Unidentifiable intangible assets － goodwill • 6. Disclosure of intangible assets • 7. Other non-current assets 3 1. 1. Introduction Introduction to to intangibles intangibles • Intangible assets‚ which generally result form legal or contractual rights‚ do not have a physical substance.
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there is no impairment loss. Therefore‚ under GAAP‚ the building is not impaired as of December 31‚ 2010. 3. Part 1. Under GAAP‚ there is a two-step goodwill impairment test. ASC 350-20-35-4 says the first step is “used to identify potential impairment‚ compares the fair value of a reporting unit with its carrying amount‚ including goodwill. ” Step 1: Fair Value of Eagle’s CGU in Serbia $1‚050‚000 Fair Value of Eagle’s CGU in Serbia’s
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method I selected is the acquisition method. Business combinations have implemented the newly created accounting treatment called the “acquisition method.” The major changes in the acquisition method involve variations to fair value measurement‚ goodwill recognition‚ and non-controlling interests. Under this method‚ the parent company reported the net assets of the acquired company at the price that it was paid for. This price included any cash payment‚ the fair market value of any shares
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A SYNOPSIS OF ACCOUNTING FOR BUSINESS COMBINATIONS‚ INTANGIBLES AND GOODWILL IMPAIRMENT INTRODUCTION During the 1980 ’s and 1990 ’s a great number of business mergers and acquisitions took place. The generally accepted accounting principles to record the initial transaction and to account for the acquired assets during their estimated useful lives this were well established. Over time however‚ users of financial statements began to question whether those principles and practices accurately
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