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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RSSWORKS INC Case Memo What business model would be appropriate for the RSS Works? The Business model for RSS Works would be advertising supported content by inserting adds on the feeds posted by RSS and while users are surfing the information they add window will automatically open up and thus revenue can be maximised. And they should combine with Freemium and Enterprise model with this combination the content can be developed more. Rather than going for the option of investing in physical
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Nike Inc. Case 1. What is the WACC and why is it important to estimate a firm’s cost of capital? WACC is weighted average cost of capital‚ which is the expected rate of return on average from all the company’s existing debts and securities. It takes into account all different types of financing in the company’s capital structure. The reason it is important to estimate WACC is because it measures what it costs the firm to take on a project based on its current Debt and Equity mix. When the
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Keystone Pipeline The Keystone Pipeline‚ also known as Keystone XL‚ is a 1‚179-mile-long pipeline from oil fields in Western Canada to the Midwestern United States. Specifically‚ this pipeline will extend from Alberta‚ Canada to Steele City‚ Nebraska with plans to link to an existing pipeline that reaches to the Gulf Coast. Despite the advantages this pipeline will produce‚ it will also create various negative effects regarding wildlife and inhabitants of these areas‚ economic and political issues
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Strategic outsourcing involves separating out some of a company’s value creation activities within a business and letting them be performed by an independent entity. Indeed‚ Apple has outsourced various functions in terms of manufacturing‚ assembly and logistics as its contract manufacturers and outsourcing companies can perform several value-creation functions at a lower cost due to low-cost location and other competitive advantages. We are living in a globalized economy in which overhead and
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Prime Minister Lee Kuan Yew laid a foundation that circled around the importance of education‚ strong work-ethic and discipline. This focus was highlighted in three main pillars of efficient government‚ economic stability and a strong workforce in this case. Efficient Government – Having an efficient government not only made Singapore attractive to foreign investments but it also ensured Singapore was adaptable and able to build the infrastructure and institutions required for a healthy economy. The
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Standards Introduction Self-regulated: the standards governing audits were established by members of the profession themselves Sarbanes-Oxley Acct of 2002 Created: Public Company Accounting Oversight Board (PCAOB) to provide external and independent oversight over the audits of public entities Responsible for registering public accounting firms‚ establishing standards for audit engagements‚ and inspecting the quality of audits conducted by public accounting firms ****Generally Accepted Auditing
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Case 9 Horniman Horticulture 1. The financial performance of a company can be determined by analyzing different financial ratios. The Horniman’s company financial performance looks strong and healthy if one looks at their 2005-projected financial summary net profit of 60.8 thousand dollars. Also they have a steady growth and increase from 2002 to 2004 in their revenue‚ profits and assets. In addition‚ Exhibit 2 demonstrates that all but one financial ratio supersede the benchmark for other horticultural
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1 Chapter 7: Audit Evidence I. Definition: Evidence – information used by the auditor to draw conclusions on the fair presentation of the financial statements. Audit objectives suggest the types of evidence to accumulate. II. Decisions on evidence accumulation A. Which audit procedures to use. General Objectives: Six TRAOs Eight BRAOs Four PDAOs Accounting Cycles: Five Management Assertions Specific Objectives: At least: Six TRAOs Eight BRAOs Four PDAOs Audit Procedures: At least one
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LIVENT‚ INC.: An Instructional Case Michael C. Knapp Professor University of Oklahoma Price College of Business 307 W. Brooks Norman‚ Oklahoma 73019 Office phone: 405-325-5784 mknapp@ou.edu Carol A. Knapp Visiting Associate Professor University of Oklahoma Price College of Business 307 W. Brooks Norman‚ Oklahoma 73019 ABSTRACT: Like many financial frauds‚ the Livent‚ Inc. fraud was masterminded by a few individuals‚ primarily Garth Drabinsky‚ a Broadway “impresario” who had received
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