...ACCT 301 – intermediate Accounting 1 Case Study Due date: December 3, 2015 Objectives of the Case: This case gives students the opportunity to apply the guidance in ASC 350 to determine: • What goodwill impairment indicators should be evaluated. • Whether an interim period step 1 impairment test should be performed Applicable Professional Pronouncements: ASC 350-20, Intangibles — Goodwill and Other: Goodwill (ASC 350-20) ASC 820, Fair Value Measurement (ASC 820) Research Databases: Use the FASB Accounting Standards Codification Database to research the authoritative literature (FASB pronouncements) relevant to the issues in question. The web link and login information of the database is available on D2L. Instructions: a) Your name, class section, and responses must be typed on this document. b) Write your answer right below each question using ARIAL font size 11 unless specified otherwise. c) Your responses must be clear, concise, supported with persuasive arguments, and free from grammatical and spelling errors. d) There is no limit on the length of your response. e) Two submission formats are required: (1) an electronic version must be submitted via designated D2L drop box, and (2) a hard copy version must be submitted at the beginning of the class on the due date. Late submission will not be accepted (no exceptions). f) For hard copy submission, only print the cover page and the pages containing your responses. It must be...
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...Case 1 Goodwill Impairment Testing Should management have performed an interim goodwill impairment test as of September 30, 2010? Galaxy Sports Inc. (Galaxy) is a U.S. based manufacturer of sports equipment. It is an SEC registrant with one operating segment with three separate reporting units: fitness, golf and hockey. The fitness is the largest division of Galaxy with allocated goodwill of $200 million. The golf division reports $130 million of goodwill and the hockey has $30 million of goodwill. Each division has been a reporting unit for a number of years. Due to the complexities involved with the calculation of goodwill and resource restraints in 2009, Galaxy decided to hire Big Time LLC (Big Time) to perform three annual ASC 350, Intangibles-Goodwill and Other, impairment analyses. In 2009, no goodwill impairment was found by Big Time. In 2010, Galaxy did not use Big Time or any external evaluation firm for the goodwill impairment analyses. The management determined that the prior year step 1 analysis of Big Time could be used based on the fact that assets and liabilities had not significantly changed, the most recent fair value determination had exceeded the carrying value amount by substantial margins, and that no events or circumstances would cause the fair value to go below the book value. The issues at hand are whether or not an interim impairment analysis should have been performed as opposed to carrying forward the prior year step 1 analysis. Management...
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...necessary a qualitative assessment must be completed first. One of the most important pieces of information of Galaxy Sports Inc. at the September 30, 2012 date was the current market environment. Galaxy had experienced a slump in sales and was losing revenue to cheaper foreign competitors because the economy was slower. In ASC 350-20-35-3c there were several factors listed that should have led Galaxy to test for goodwill impairment. They included “Macroeconomic conditions such as a deterioration in general economic conditions, limitations on accessing capital, fluctuations in foreign exchange rates, or other developments in equity and credit markets”, “Industry and market considerations such as a deterioration in the environment in which an entity operates, an increased competitive environment, a decline in market-dependent multiples or metrics (consider in both absolute terms and relative to peers), a change in the market for an entity’s products or services, or a regulatory or political development”, “Overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods “ and “If applicable, a sustained decrease in share price”. Galaxy had predicted revenue for the third quarter to be much higher than what actually occurred. On December 31, 2011, Galaxy had common share price of $56.75. Since then the stock price has plummeted to $31.50 after the 2012 third...
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...| Deloitte & Touche LLC1 | Memo To: | Mary Stanford | From: | Ben Ji | Date: | September 26, 2012 | Re: | Goodwill Impairment Test | | | Galaxy Sports Inc. is a manufacturer of sports equipment. It is a public company with three reporting units: Fitness Equipment, Golf Equipment, and Hockey Equipment. During our audit, certain accounting treatments by Galaxy regarding goodwill impairment were found to possibly contradict with the Accounting Standard Codification. Based on my research of the ASC, my recommendations are that management should perform an interim goodwill impairment test at the end of third quarter of fiscal year 2009; and that management should not carry forward the 09 goodwill impairment test for Fitness and Hockey in 2010. Galaxy is in a competitive industry in which growth and profitability are tied to market and consumer demand. During 2010, as discussed in a press release by the management, Galaxy faced strong competition from Chinese imports that are sold at a lower price. Reduced consumer spending resulted from a slowing economy also hurt Galaxy’s sales. These “unanticipated competition” coming from affordable Chinese imports, and “significant adverse changes in the business climate” represented by a weak economy and reduced consumer spending are circumstances under which the ASC 350-20-35-30 mandates a goodwill impairment test between annual tests3. Therefore, an impairment test shall be carried out as of Sep 30, 2010. Figure 1 ...
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...Galaxy Sports Inc. is a manufacturer of sports equipment. It is a public company with three reporting units: Fitness Equipment, Golf Equipment, and Hockey Equipment. During our audit, certain accounting treatments by Galaxy regarding goodwill impairment were found to possibly contradict with the Accounting Standard Codification. Based on my research of the ASC, my recommendations are that management should perform an interim goodwill impairment test at the end of third quarter of fiscal year 2009; and that management should not carry forward the 09 goodwill impairment test for Fitness and Hockey in 2010. Galaxy is in a competitive industry in which growth and profitability are tied to market and consumer demand. During 2010, as discussed in a press release by the management, Galaxy faced strong competition from Chinese imports that are sold at a lower price. Reduced consumer spending resulted from a slowing economy also hurt Galaxy’s sales. These “unanticipated competition” coming from affordable Chinese imports, and “significant adverse changes in the business climate” represented by a weak economy and reduced consumer spending are circumstances under which the ASC 350-20-35-30 mandates a goodwill impairment test between annual tests3. Therefore, an impairment test shall be carried out as of Sep 30, 2010. Figure 1 I also tracked the changes in control premium to gauge the accuracy of the fair value estimates assuming the 2009 fair values were carried forward. Control...
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...Contents page Page 1 ………………….……………. Executive Summary Page 1 ……………………………………..…… Introduction Page 2, 3...................................What is marketing? Page 3, 4……………….. Role & function of marketing Page 4, 5, 6, 7.………………….……….. Marketing mix Page 7, 8 ………………………. What are stakeholders? Page 8 …………………………………………….. Conclusion Page 9 ….……………………………………… Bibliography Do organisations need marketing? Executive Summary The following essay has been written to explain the importance of marketing and how it can affect the sales and revenue of a business. The essay will explain to the reader what is marketing and how it can both positively and negatively affect a business. It will explain the marketing mix as well as the 4P’s. Also written in the essay is the importance of stakeholders and how to communicate with them. Introduction The core objective of this assignment is to get a precise understanding of the importance of marketing and how marketing can influence companies to aim their products directly at their target market. As well as encourage customers into specifically purchasing their goods over the competitors. There are many different marketing methods and each method varies with customer demand. The main aim of a marketer is to use various marketing methods to identify and then market their product directly at the consumer. This will then enable them to gain maximum sales for the company, while ensuring that the products are sold at a price which the...
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...was an avid fisherman and was asked by the store owner to come up with products needed so he can began to venture into the fishing tackle business. Dick presented his suggestions, the owner told him he had no idea what he was doing. That made Dick upset and he quit working at the store. Dick being upset headed back home, and told his grandmother what occur at the store that evening. Once Dick told her the story, she gave him cash to build his own store. That’s exactly what he did with hard work and dedication, opened up his first store in Binghampton Dicks Sporting Goods, Inc. is a full-line sporting goods retailer offering a broad collection of brand name sporting good equipment, apparel and footwear in a Special store environment. The company also owns and operates Gold Galaxy, LLC, a gold specialty retailer and ecommerce websites and catalog operations for both Dick’s Sporting Goods and Golf Galaxy. Dick’s Sporting Goods is such a great shopping experience physically. Walking into the stores your amaze instantly, there’s an old- time feeling with the wooden logs throughout the whole store. Most of the stores I’ve been in at least two huge tanks with different variety of fishes swimming around. Depends which day you go shopping, sometimes they have in store events. And it’s an awesome place for children, with different activities to get into like fishing, drawing, or whatever. Dick’s online store is fairly easy to navigate around and shop on. Everything on the website...
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...of Marketing MKT 100 November 03, 2013 My company is called Henderson’s iPhone Store. We market all the latest versions of Apple smartphones. We will be marketing the new Apple iPhone 6 and entering all foreign markets. The target market for the iPhone is teenagers, college students, business class individuals, and adults. (Apple Inc., 2013). Our specific target market for this report is a married person, approximately 36 years old, and lives in a major city. This individual has a steady job, makes a solid income of about $65K a year. This individual likes to play sports, and has a very active social life. He has high goals which include gaining the experience which will assist him in landing his dream job with an income of over $100K yearly. Consumer’s behaviors include finding convenient mobile devises that offers more efficient ways for calling, messaging, and entertaining using a single button. These consumers are looking for the latest technology to satisfy their personal and social needs. Most of these consumers are affluent, and will purchase expensive products and brands which are shown as a status symbol (Apple Inc., 2013). Identifying the target audience is an important success factor for Henderson’s iPhone Store. Market segmentation can be used in many ways to construct the framework to influence their targeting activities. Understanding the market and the factors that influence consumer buyer behavior can ensure the soon to be launched iPhone 6...
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...I. September Facts A. 265th day of the year 1. 100 days left until the end of this year 2. Ends summer, brings the season fall B. Signs 1. Virgo is the zodiac sign of somebody who was born in September 2. The modern birthstone for this month is Sapphire 3. Agate is the mystical birthstone 4. The ox represents September 5. The September element is fire C. 22 of September in 1997 1. The day of this week was Monday a. Second day to start the week b. The Spanish translation for Monday is lunes 2. A person born on this day will be sixteen years old today a. If this same person saved a nickel everyday starting at the age of five, then by now that person would have accumulated $210.20 today b. Assuming this same person is alive and kicking II. Famous Deaths A. Bryan Woods 1. Soldier/clerk 2. Dies at age 76. B. Eric William Hunter Christie 1. Barrister 2. Dies at age 77 C. George Bryan Ingham 1. Artist 2. Dies at age 61 a. Studied at St. Martin’s School of Art, located in London b. Taught by Frederick Gore and A Ziegler 3. Exhibitions a. 2003-4, Bryan Ingham Prints, Belgrave Gallery, St. Ives b. 2006, Fine Arts Society D. Ruth Picardie 1. Journalist, editor 2....
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...1. Introduction For any company, selling is one of the most important jobs (Baer, 1972). A company depends of salesman for the selling. On top of that, selling strategy is also important (Maxwell, 1914). In this report, the selling strategy of a company names Samsung for their product “Galaxy Note II” will be discussed. Basically, the report is divided into 7 parts. In the first part, the profile of Samsung is been discussed. In the second part, the products of Samsung have been discussed. In the third part of the report, the unique features of Samsung Galaxy Note II have been discussed. And then, in the fourth part, target customer of Note II has been discussed. Next discussion is about the selling strategy of the product. After that, four competitor company’s profile has been given. Comparison between 4 mobile sets which has identified as the greatest competitor of Galaxy Note II has been given. The sets are, iPhone 5, Galaxy note III and also Xperia Z. 2. Company Profile (Samsung) Samsung Group (Hangul: Hanja: Korean pronunciation) is a South Korean multinational conglomerate company headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses. Most of them united under the Samsung brand and is the largest South Korean Chaebol (business conglomerate). Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next three decades the group diversified into areas including food processing, textiles, insurance, securities...
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...THE SADHU VASWANI INSTITUTE OF MANAGEMENT STUDIES (SVIMS), PUNE REPORT ON ENTERPRISE ANALYSIS: DESK RESEARCH COURSE (COURSE CODE 115) OF FIRMS M/s. Apple Inc. And M/s. Samsung Electronics Ltd. SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE MBA DEGREE PROGRAMME OF THE UNIVERSITY OF PUNE OCTOBER, 2013 SUBMITTED BY Komal Singh ROLL NO. 13216 (BATCH - 2013-14) SADHU VASWANI INSTITUTE OF MANAGEMENT STUDIES KOREGAON ROAD, PUNE 411006 DATE: 15th October 2013 This is to certify that Miss KOMAL SINGH, Roll No. 13216, is a bona fide student of this Institute, currently pursuing her Semester-I of the MBA Programme. She has successfully completed the report on Enterprise Analysis Desk Research course (Course Code 115 ) as a generic elective and submitted the same for further evaluation. (Dr. Prof. Mahesh Halale) (Dr. Prof. B.H. Nanwani) Subject Facilitator Director APPLE INC. Table of Content TOPICS Page No. Company 1 - Apple Inc. 1. Enterprise history & background 1 2. Organization 5 3.Markets 8 4. Financial 11 5.Governance 15 6. Summary 17 7. Learning’s 18 8. Bibliography 19 Samsung Electronics Ltd. Table of Content Company 2- Samsung Electronics Ltd...
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...The Analysis of Smartphone Industry Author Note This paper was prepared for MRK 3001 Marketing Strategies, taught by Associate Professor Burcu İlter. TABLE OF CONTENTS ABSTRACT This study aims at measuring industry analysis about smartphone. Firstly, we had to determine which smartphone industry is going to handle. We did brain stormy with group members on this subject. We looked over many web pages about this subject. And then, we did internet searching about the comparison of industry analysis examples. We did task distribution after internet searching. Description of smartphone, smartphone industry and nature of the industry is handled by Emir Nişancı. Structural analysis within the industry and industry dynamics are handled by Merve Demirkıran, Damla Dutlu and Perihan Yıldırım. Competitor analysis for each key player is handled Anna Bivol. We have had a lot of knowledge that we didn’t know about the smartphone industry through this term project. This term project has had enjoyable and beneficial for us. Keywords: Smartphone Industry, Industry Dynamics, Key Player of Smartphone Industry 1. Introduction This report will focus on the smartphone industry given that the global market, in terms of the major players involved. In this report, we mainly focused on the dynamics of the smartphone industry and the factors that affects the change over the conditions of competition. The smartphone industry consists of all companies that manufacture and sell smartphones...
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...Management must maximize sales of the product with the highest contribution margin per unit. Do you agree? Explain. 2. Managers must choose the alternative that maximizes operating income. Do you agree? Explain. 3. Broadway Printers operates a printing press with a monthly capacity of 2,000 machine-hours. Broadway has two main customers, Taylo Corporation and Kello Corporation. Data on each customer for January follow: | | | | | | |Taylo Corp. |Kello Corp. |T o t a l | |Re | | | | |Revenues |PhP 120,000 |PhP 80,000 |PhP 200,000 | |Variable costs |42,000 |48,000 |90,000 | |Fixed costs (allocated based on revenues) |60,000 |40,000 |100,000 | |Total operating costs |102,000 |88,000 |190,000 | |Operating income/(loss) |PhP 18,000 |PhP ( 8,000) ...
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...are beneficial because they enhance the cognitive flexibility and teach moral lessons. Video games are games that are played by electronically manipulating images produced by a computer program on a monitor or any other display. Video gaming has become increasingly popular because some people feel the need to “escape” from the harsh reality, and dive into their fantasy realm that is video games. Whether players take the role of the great detective they dream to be in “L.A. Noire” and bring criminals to justice, or a Dark Lord of the Sith and spread fear across the galaxy in “Star Wars: Knights of the Old Republic”, they indefinitely found their place and enthusiasm in video games. As a matter of fact, certain genres of video games are now played as a competitive sport; Counter-Strike (First Person Shooter), Starcraft (Real Time Strategy) and even the football simulated game of FIFA are now played as a competitive sport, in which the winners walk home with fame and glory. Despite these achievements, video game controversies have also emerged, with “series of media claims that video games cause violence.”(Burnett); a common misconception that suggests video games are the direct link to violent behavior amongst gamers. Video games are beneficial to gamers due to their contribution to a...
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...Columbia, Dick’s, and Sportswear Financial Analysis Lynnette Villarreal Webster University Abstract This paper will address a financial comparison analysis for three like sportswear companies—Columbia Sportswear Company, Dick’s Sporting Goods and Big 5 Sporting Goods, Corporation. The analysis is conducted by leveraging three kinds of financial statistics used to spot issues in companies’ financial information—common size analysis and ratio analysis. The following is a synopsis of the three companies and their financial comparison. It will provide financial data that managers use to keep alert of anything that should be reporting to there top director of the company. Executive Summary The FINC 5880 course is charged to do a financial comparison of three for profit organizations that are publicly traded. Yahoo Finance will be used to retrieve the latest financial for the three companies. This study will compare and contrast the companies by providing background information. Financial statements provide businesses with the basic tools for determining how well their operations perform at all times. Many entrepreneurs do not appreciate that financial statements have a value that goes further than their use as supporting documents to loan applications and tax returns (Gitman, 2006). These statements are concise reports designed to summarize financial activities for specific periods. Owners and managers can use financial statement analysis to assess the past and...
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