practices for something as essential as goodwill. These developments are particularly important because of the Accounting Standards Board’s (ASB) Statement of Principles (SOP) focus on assets and liabilities (Lawrence 2000). Goodwill is defined as “the excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets‚ liabilities and contingent liabilities” (Elliott and Elliott 2007‚ p.450). However‚ goodwill can only be recognised when an entity
Premium Balance sheet Asset
A reporting entity is required to prepare its financial report based on IASB framework and it is so useful for different types of users to evaluate the financial performance of the reporting entity and make suitable decisions. In this essay‚ the usefulness of conceptual framework in preparing of financial report will be discussed. And also‚ 2011 annual report of CLP Holdings Limited will be reviewed to further discuss how its qualitative characteristics of the information are useful for shareholders
Premium Balance sheet Financial statements International Financial Reporting Standards
of Chartered Accountants of India (ICAI) is instrumental in the development of the most of the accounting principles. In U.S.A.‚ Financial Accounting Standard Board (FASB) is the principle source of GAAP. The International Accounting Standard Board (IASB) is now playing a very significant role in the formulation of GAAP for application across the countries. “Indian GAAP” are the standards notified by the central government of India under the companies (accounting standard) rules‚ amended
Premium Balance sheet Generally Accepted Accounting Principles Financial statements
Info Conceptual Framework — IASB-FASB joint project Background At their joint meeting in October 2004‚ the IASB and the US FASB decided to add to their respective agendas a joint project to develop a common conceptual framework‚ based on and built on both the existing IASB Framework and the FASB Conceptual Framework‚ that both Boards would use as a basis for their accounting standards. The two boards reached the following tentative decisions about the approach to the project: * The project
Premium International Financial Reporting Standards Financial statements
IASB Deliberations Exercise C12-3 What are three projects currently on the active agenda that are being addressed by the IASB? What is the timetable identified for milestones on each of the projects? “The first project is IFRS 9: Financial Instruments (replacement of IAS 39)” (IFRS Foundation and the IASB‚ 2012: Financial Instruments). To simplify the requirements for financial instrument classification and measurement in November 2008 this project was added to the IASB’s active agenda with the
Premium International Financial Reporting Standards Financial statements
International Accounting Standards Board From Wikipedia‚ the free encyclopedia Jump to: navigation‚ search The International Accounting Standards Board (IASB) is the independent‚ accounting standard-setting body of the IFRS Foundation.[1] The IASB was founded on April 1‚ 2001 as the successor to the International Accounting Standards Committee (IASC). It is responsible for developing International Financial Reporting Standards (the new name for International Accounting Standards issued after
Premium International Financial Reporting Standards Balance sheet Revenue
Goodwill Can be conveniently divided into two classes that which had been – Internally generated – Purchased There is general agreement that the former category should not be brought to account because it was impossible to do so within the accepted rules of double entry bookkeeping and historical cost based accounting – it is the goodwill not purchased but generated via the internal operations of the organisation No difficulty in bringing purchased goodwill to account‚ but controversy raged as
Premium Balance sheet Goodwill Generally Accepted Accounting Principles
4.1 Was the IASC successful? Explain your reasoning. Ans. IASC had two declared aims: • Issuing standards • Promotion and observation of standard If evaluate the IASC success in issuing of standard then we can see that they published forty one standards and other publications including a conceptual frame work. In this area they have noticeable achievement. If we look into the IASC’s another objective of promoting and observing of standard then success varies from country
Premium United Kingdom Multinational corporation Soviet Union
Goodwill Goodwill is a non-profit organization that provides job training‚ employment placement services and other community-based programs for people who have a disability‚ lack education or job experience‚ or face employment challenges. (Begin‚ 2008). Goodwill operates as a network of 183 independent‚ community-based organizations in the U.S.‚ Canada and 14 other countries. In 2008‚ Goodwill collectively earned more than $3.25 billion and used 84 percent of that revenue to provide employment
Premium Non-profit organization Dot-com bubble
VALUATION AND MANAGEMENT OF GOODWILL IN A BUSINESS. INTRODUCTION Goodwill is an intangible element connected with the going concern which include personality‚ reputation‚ the company name‚ convenient and favourable location of the business‚ quality of merchandise‚ efficient management‚ supply and demand for a choice product‚ affordable prices‚ efficient labour relations with employees‚ true and fair view and finally courteous methods of treating customers. Goodwill is often shown on the accounting
Premium Balance sheet Financial statements International Financial Reporting Standards