of important differences between US GAAP and IFRS and‚ though this analysis‚ give a better understanding how these standards apply in the real world accounting field. This paper analyzes similarities and differences in revenue recognition‚ asset impairment‚ consolidation processes‚ contingencies‚ and depreciation. In revenue recognition‚ the definition and treatment of revenue recognition according to US GAAP and IFRS is different. GAAP recognizes revenue when all of the following criterions are
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which we allocated the purchase price were goodwill of $7.1 billion‚ identifiable intangible assets of $1.6 billion‚ and unearned revenue of $222 million. The goodwill recognized in connection with the acquisition is primarily attributable to our expectation of extending Skype ’s brand and the reach of its networked platform‚ while enhancing Microsoft ’s existing portfolio of real-time communications products and services. Microsoft assigned the goodwill to the following segments: $4.2 billion to
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Understanding Paper The information my organization request is important for us to better understand how the adjustment of the information on inventory valuation‚ interest capitalization‚ recording gain or loss on asset disposal and goodwill impairment are done. It is important for us to understand the accounting procedures being used so we can identify this information and determine if compliance with the accounting principles is coherent with Generally Accepted Accounting Principles (GAAP)
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explain why I have asked for the information in question. I will outline adjusting lower cost or market inventory on valuation‚ capitalizing interest on building construction‚ recording gain or loss on asset disposal‚ and adjusting good will for impairment. Adjusting lower cost or market inventory on valuation When a company purchases additional inventory at a reduced price‚ the company has to adjust the price of their current inventory of an item to account for the probability of decreased
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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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Australia Post 50% AUX Investments Star Track Express Australia Air Express 50% 50% 5. Australia Post impaired their investment in Wetherill Park Partnership. (a) How much was the impairment for the year ended 30th June 2011. Australia Post impaired their investment in
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on June‚ 30th‚ 20X0 by Recreational Properties for $46‚050‚000. The fair value of identifiable assets and liabilities acquired are reported as $42‚500‚000‚ resulting in a computed goodwill of $4‚000‚000.It should be noted that goodwill has not been adjusted since the purchase. In order to test goodwill for impairment‚ it was first necessary to compute the fair value of Snowy Ridge’s current identifiable assets (see table 1). The fair value of marketable securities reflected the total quoted market
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Part 1: Goodwill and Discontinued Operations a) Carrying value of goodwill 24 June 2012 The carrying value of goodwill in Woolworth’s consolidated financial statements was $3221.8 Million (M) at 24 June 2012. This figure is included within ‘intangible assets’ on the consolidated balance sheet and exact amount is disclosed in the Note 11 of Notes to consolidated financial statements (Woolworths 2012‚ p 126). b) Movements in carrying value of goodwill The carrying value of goodwill at the
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rules and regulations required by the Financial Accounting Standards Board (FASB). Clients will ask questions when they do not understand the reasoning behind the information needed. Adjusting costs‚ determining capitalization‚ asset disposal‚ and goodwill are often harder to understand concepts in accounting and the accountant needs to be able to explain the requirements of the accounting standards codifications (ASC) in relation to the issues the clients ask about. Adjusting lower cost of market
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Financial statement overview Compnet International is a US-based Company that manufactures automobiles parts and various technical parts used in computers and computerized devices. Having established a cash reserve‚ Compnet seeks to ensure financial stability by increasing the company’s financial liquidity in meeting the day-to-day financial obligation. This means that the company shall put aside a portion of its liquid finances either in short term investments or in bank accounts and
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