Association of Certified Public Accountants (MACPA) and the smaller firms behind the Malaysian Institute of Accountants (MIA). At other times big business prevailed. These conflicts and power struggles are revealed through an analysis of the case of the Goodwill Accounting Standard. Selvaraj D. Susela 358 Introduction This paper offers an understanding of the struggle within the accounting profession for control of the standard setting process‚ in the context of a developing nation. The focus on
Premium Accountant Accountancy
Nextel Case Analysis 1. How much goodwill impairment charge did Sprint Nextel report in 2007? During 2007‚ Sprint Nextel recorded a non-cash impairment charge of $29.7 billion in accordance with Statement of Financial Accounting Standards‚ or SFAS‚ No. 142 Goodwill and Other Intangible Assets. 2. Why did Sprint Nextel write down their goodwill in 2007? What are some other indicators for goodwill impairment in general? Sprint Nextel wrote down their goodwill in 2007 primarily due to the company’s
Premium Customer service 2009
November 3‚ 2013 Accounting 305 FASB Codification 1. The relevant FASB codification standards are as follows… 1. 350 Intangibles – Goodwill & Other 1.2 20 Goodwill 1.3 35 Subsequent Measurement 1.3.1 Overall Accounting for Goodwill (35.1-3) 1.3.2 Recognition & Measurement of Impairment Loss & Step 1 of the Qualitative Assessment (35.3A-15) 1.3.4 Determine the Fair Value of a Reporting Unit (35.22-23) 1.3.5 Reporting Unit (35.33-38) 2. 280 Segment Reporting 2.1 10 Overall
Premium Fundamental analysis Stock Generally Accepted Accounting Principles
answers using Microsoft Word. “Goodwill is defined as an asset acquired in a business combination that has future economic benefit and is result of acquired assets that could not be separately recognized and identified individually. Goodwill that is computed in a business combination using the provisions of ASC business combination is not
Premium Generally Accepted Accounting Principles Balance sheet Asset
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.
Premium Goodwill Generally Accepted Accounting Principles Asset
Question 1: Why is an impairment test considered necessary? Impairment test is considered necessary nowadays since economic environment is changing rapidly and all companies are subject to increased scrutiny by auditors‚ regulators and even investors for accurate and timely reporting of impaired assets. Volatility and ever changing nature in the financial markets has resulted in the necessity of impairment test. Therefore‚ companies have to be required to test goodwill and other intangible assets
Premium Goodwill Balance sheet Asset
income $ 1‚600‚000 Revaluation writeoffs: Equipment $500‚000/5 (100‚000) Inventory (200‚000) Goodwill impairment loss (50‚000) Equity in net income of Safeco $ 1‚250‚000 Peerless’s entries for 2014: Investment in Safeco 8‚000‚000 Cash 8‚000‚000 Investment in Safeco 1‚250‚000 Equity in net income of Safeco 1‚250‚000 Cash 600‚000 Investment in Safeco 600‚000 Calculation of goodwill is as follows: Acquisition cost $ 8‚000‚000 Book value of Safeco (7‚000‚000) Excess of
Premium Generally Accepted Accounting Principles Depreciation Expense
With the accounting policies relating to Property‚ Plant‚ and Equipment adopted by the company is mentioned as Plant and equipment‚ leasehold improvements and equipment under finance leases are stated at cost less accumulated depreciation and impairment (if any). But‚ In this report there are not any impairments.Cost includes expenditure that is directly attributable to the acquisition of the item. In the event that settlement of all or part of the purchase consideration is deferred‚ cost is determined
Premium Depreciation Generally Accepted Accounting Principles Asset
discounting the cash flows for the Macinaw Division and which of the appropriate discount rate for computation of goodwill impairment. The case mentioned about impairments which will be written down after the assets are tested for impairments and how the impairment loss will be allocated among group of assets. The audit memo gives the answer about whether long-lived asset or goodwill write-downs due to impartment or write-ups if the fair value subsequently increases. Fact: To take advantage of
Premium Generally Accepted Accounting Principles Goodwill Depreciation
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
Premium Goodwill Depreciation Balance sheet