Premium Essay

Question 2

In:

Submitted By hmyguai
Words 790
Pages 4
Question 2:

Accounting for Goodwill has been a contentious issue for many years.
a. Using examples, explain alternative accounting methods that can be used in practice with respect to the treatment of goodwill arising on consolidation.
b. Discuss the advantages and disadvantages of allowing different treatments to be used under international accounting standards for items such as goodwill.

Answer.

Goodwill means an intangible asset which provides a competitive advantage, such as a strong brand, reputation, or high employee morale. In an acquisition, goodwill appears on the balance sheet of the acquirer in the amount by which the purchase price exceeds the net tangible assets of the acquired company (www.investorwords.com). There are two types of goodwill, one is internally generated goodwill and another one is external or purchased goodwill.

Internally generated goodwill is supposed to reflect the reputation and other positive characteristics of the business which are all difficult to put a value on (www.staffs.ac.uk). Internally generated goodwill is based on the value of a business as a whole and the value of its net assets. Because of internal goodwill has not been paid and it does not have an ‘objective’ value, and goodwill changes every day, internally generated goodwill should not appear on the Balance Sheet. Purchased goodwill is the excess of purchase price over fair value of the net assets of the business acquired by the purchaser. Purchased goodwill is based on transaction with third party at arm’s length. It is recognized by the acquirer as asset from the acquisition date.

Accounting standards allow two methods of calculating goodwill: The proportionate (traditional) method and the fair value method. Goodwill is the amount paid by the parent for the subsidiary differs from the value of the separable net assets acquired

The old

Similar Documents

Free Essay

Lesson 2 Review Question Answers

...Review Questions - ANSWERS Name ____________________________ Answer the following questions: 1) What is a resource? People, equipment & materials necessary to complete a task 2) Why aren't resources assigned to summary tasks? Summary tasks are simply a grouping for a set of related tasks. The indiv tasks require resources but the summary task is just a compilation of those resources. 3) What is the difference between Start, Prorated and End in association with costs? Start – cost applied at the beginning of the task Prorated – cost applied as work is completed End – cost applied when the task is completed 4) Give a real-world example of the difference between a fixed cost and a cost per use? Give a real-world example of the difference between a fixed cost and a cost per use? Fixed Cost: (buy equipment) company bids $500 to clean carpet, cost of airline ticket… Cost Per Use: (rent equipment) Hourly rate on moving van, rental of shampoo machine, landing fee each time plane lands… 5) Why is a fixed cost entered with the task and not the resource? Because the cost is the same no matter how many people, hours, materials used. Not dependent upon the amount of time or number of resources it takes to complete. 6) Why is the resource cost for the Wiring Contractor $0.00? Because the installation of the wiring is a fixed contractual price of $4000 – it will not matter how many hours the contractor takes – still the...

Words: 283 - Pages: 2

Free Essay

Bshs 322 Week 1 Discussion Questions 1 and 2

...This work BSHS 322 Week 1 Discussion Questions 1 and 2 contains: WEEK 1 DISCUSSION QUESTION 1 How would you introduce and engage a client in a therapeutic relationship? How might that client feel when first entering the relationship? What factors might affect the client's expectations and attitudes? How will you as a clinician handle this? WEEK 1 DISCUSSION QUESTION 2 What bias do you have that may affect certain of your counseling aspects? How can you overcome them? If you can't, what would you do? What bias do you have that may affect certain of your counseling aspects? Health Care - General Health Care ·  Prior to the beginning the assignment, each student should make a copy of the ‘Role Play Feedback Checklist Self Assessment (Student) and 2-3 copies of the ‘Role Play Feedback Checklist for Guest Reviewer’ which can be found in the course rEsource materials. Review these checklists prior to the start of the role-plays.   o  Select the scenarios you will role-play from the following list: o  You are a human service supervisor interviewing a candidate for an entry-level position in your agency that serves children and families. The interview should examine the potential staff person’s background, interest, and skills relevant to the position, as well as their long term professional goals.    o  You are the staff person’s immediate supervisor. Other staffs have expressed concerns to you that this staff person is ‘burned...

Words: 369 - Pages: 2

Free Essay

Re: Re: Re: Topic 4: Discussion Question 2

...Emily Tomko-Brueck EDU-450 January 23, 2014 Rough Draft Dear Mr. and Mrs. Smith, I just wanted to take the time to talk about Susan progress in the classroom. You daughter has been doing a wonderful job of turning her homework in on time, and fully completion. She has not missed one homework assignment this year and I am so proud of her work and your assistance. Susan also has been very actively participating in the in class activities. She does a great job of asking leading questions and assisting her peers during the in class activities. However sometimes, Susan is very talkative during the class activities and instructional time. The consistent talking has led to disruptive behavior during the lesson time. I have talked to her about her constant talking and how it impacts the classroom by disrupting everyone’s instructional time, however there is not much improvement. I would like to suggest that both parents and Susan come in to meet at talk about her disruptive behavior in the classroom and my concerns if there is not a change in her actions. Please contact me with a time that works for you to arrange a meeting to address these issues. I know Susan can turn this behavior around be just needs a little push in the right direction. Susan is a wonderful student to have but the consistent talking is becoming to disruptive. I feel that we can overcome this with a small discussion and arriving at an outcome that work for everyone in the classroom. I look...

Words: 326 - Pages: 2

Premium Essay

Read the Scenario Below, and Then in a Short Paper (1-2 Pages, Typed, 12 Point Font, 1’’ Margins) Discuss and Answer the Following Question Thoroughly and Thoughtfully, Applying Class Concepts When Possible:

...Cross-Cultural psychology GE261 Assignment 2 Kwan Adams Read the scenario below, and then in a short paper (1-2 pages, typed, 12 point font, 1’’ margins) discuss and answer the following question thoroughly and thoughtfully, applying class concepts when possible: 1- What values of childrearing are represented by Lynn’s parenting of her son? (In other words, what parenting practices are considered acceptable in her culture and why? What is expected of children in her culture?) 2- How well do Lynn’s values of childrearing fit with the parenting values found in the United States? Be specific. 3- In your opinion, is it ever appropriate to interfere with someone else’s cultural practices? Why or why not? 4- Why do you think education and affluence serve to decrease physical punishment across cultures? Do you think that it is likely that Lynn will continue to use physical punishment while living here in the U.S.? Why or why not? As Lynn headed out to go shopping, she already knew her four-year-old son was in a bad mood. All that day he had been doing all that he could to frustrate her. First, he chose not to eat breakfast and then he spilled apple juice all over the carpet. He categorically refused to put on his red jacket and continuously tried to unbuckle his seatbelt in the car. Since they had arrived at the shopping mall, he had been whining continuously for 20 minutes and demanding they go to the toy store immediately. The mother’s patience finally ran out...

Words: 611 - Pages: 3

Free Essay

Question 2 and 3

...Item | Unit Price | Quantity | Total | | Prolink Laser Mouse | 109.90 | 2 | 219.80 | | Netgear Router | 215.90 | 1 | 215.90 | | Microsoft Keyboard | 59.90 | 1 | 59.90 | | Samsung 24” LCD | 630.00 | 1 | 630.00 | | Grand Total | | | 1125.60 | | Question 2 Question 3 How to replace the CMOS battery Issue: How to replace the CMOS battery. Cause: Like any battery the computer CMOS battery can fail or lose its charge. Solution: If your computer is losing its time or date settings, or you are receiving a message CMOS Read Error, CMOS checksum error, or CMOS Battery Failure, first attempt to leave the computer on for 24 hours. In some cases this can charge the battery and resolve your issue. This often resolves CMOS battery related issues when a computer has been left off for several months. If this does not resolve your issue follow the below steps. (1) Write down all system settings * Ensure that the information within your CMOS, if not already lost, is written down. If you're getting a CMOS error message or your time is not being saved your settings are already lost. Getting into the CMOS setup can be found on document CH000192. (2) Locate your CMOS battery * Open the computer case and find the battery on the computer motherboard, verify that it will be accessible and that it can be removed. Most computers today use a coin cell CMOS battery as shown in the image to the right. * If you are unable to locate your CMOS battery you...

Words: 710 - Pages: 3

Premium Essay

Chapter 2 Question

...Stacy Edelman Chapter 2 Questions 1. In what ways do Different ideologies and political systems influence the environment in which MNCs operate? In each country has there are own government controls and laws that have to be followed. You have to take the countries religious views into consideration. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. A government could restrict a company's activity by intimidating and banning activities. 2. How do the following legal principles impact MNC operations. 1. The principle of sovereignty: An international principle of law which holds that governments have the right to rule themselves as they see fit. Implies that one countries court system cannot be used to determine wrongful conduct or impose penalties in another unless that country agrees. Each country has it's own rules and if that person was a U.S. citizen working in a different country and was providing equal opportunity, the employee has no right to sue the employer. 2. Nationality Principle: Recognizes a nations interest in maintaining some degree of control over it's citizen residing in different countries. Managers who violate American foreign corrupt practices when traveling could be found guilty in the U.S. 3. The territoriality Principle: accepted in the united states but not in all countries. each country has the right to it's own jurisdiction within...

Words: 318 - Pages: 2

Free Essay

Calveta-Question 2

...Question 2. Does Calveta’s operating approach offers a sustainable competitive advantage? Main Issue Yes, Calveta’s is able to create and maintain a sustainable competitive advantage throughout its operating approach. Analysis of issue A. Possess own principles or strategies “Antonio’s Way”. In order to increase or twice the revenue as promised to his father within five years, Frank need to consider on the growth strategies for his organization. With these, Frank is always concern about the principles or strategies that proposed by his father and it’s applied throughout the organization, which is “Antonio Way”. This principles conveys the ultimate aim of Calveta’s which is quality of services and customer satisfaction, leads the development of employees in Calveta’s, maintaining the stability of profitability growth. As a fact, “Antonio way” provides a clear track of direction for Calveta’s in terms of operations on how to manage the organization effectively. “Antonio Way” also helps Frank in managing the organization. For instances, when frank in the dilemma of continuing or expanding calveta’s operation into hospital segment or acquiring Great Southwest Dining , Frank used “Antonio Way” as a guideline to make a better decision that related with calveta’s operation. This aspect highlights that such principles will provide an efficient channel of operation for the organizations and maintain sustainability of the competitive advantage of calveta’s through...

Words: 1156 - Pages: 5

Premium Essay

Rim Question 2

...2. Identify some possible reasons why RIM management waited more than three days before issuing an official response to the public. Are these reasons justified? Why or why not? * No Public Relations Department RIM’s failure to address their customers after the blackout occurred insinuated “that RIM employees were working-around-the clock to fix the problem. Does this mean that the PR people are engineers as well?” (Davis, 2011). It is possible that RIM didn’t have a public relations department, and did not want to risk issuing a statement that was not culturally sensitive to its diverse user network. “Effective external relations require a sound communication strategy. A company must have a strategy for all of its external relations activities…” (Barrett, 2014). Managing the press is one of those activities. Multination companies such as RIM understand how misunderstandings can occur by not recognizing cultural differences (Barrett, 2014). Therefore, rather than issue a statement that may have been offensive to users in certain countries, RIM chose to remain silent. * Can’t identify the cause of the blackout RIM had a good reputation amongst its customers that was built on “the notion of service and reliability and when all else fails your BlackBerry will still work” (Bigus, 2012). RIM did not know what had caused the blackout, and rather than damage its reputation they waited until a possible cause had been identified before addressing the public. “External...

Words: 484 - Pages: 2

Premium Essay

Chp 2 Questions

...CHAPTER 2 -PRACTICE 1) The production possibilities frontier A) is the boundary between attainable and unattainable levels of production. B) illustrates why there need not be any scarcity in the world. C) shows how production increases as prices rise. D) shows prices at which production is possible and impossible. E) is the boundary between what we want to consume and what we want to produce. 2) A situation in which resources are either unused or misallocated or both is represented in a production possibilities frontier diagram by A) a point on or inside the production possibilities frontier. B) a point outside the production possibilities frontier. C) a point above or to the right of the production possibilities frontier. D) a point inside the production possibilities frontier. E) any point on either the horizontal or the vertical axis. 3) A medical clinic has 10 workers. Each worker can produce a maximum of either 2 units of medical services or 5 units of secretarial services a day. The production possibilities frontier of this firm would show A) constant opportunity cost. B) infinite opportunity cost. C) decreasing opportunity cost. D) increasing opportunity cost. E) zero opportunity cost. 4) A medical clinic has 10 workers. Each worker can produce a maximum of either 2 units of medical services or 5 units of secretarial services a day. One day, the firm decides it would like to produce 16 units of medical services and 5 units of secretarial ...

Words: 1251 - Pages: 6

Free Essay

Literature

...Question number 1 (a) (b) (i) Answer total internal reflection prism drawn in correct orientation (by eye) Accept TIR Notes Marks 1 1 1 Accept a freehand sketch of the triangular prism Size of prism unimportant, e.g. can fill the entire square, but horizontal and vertical edges must be drawn correct reflection of rays (by eye): (ii) Accept freehand sketch Accept correct external reflection e.g. reflection as shown below gets 1 mark for 1(b)(ii) despite the error in the 1(b)(i) response Total 3 Page No.: 3 Raiman Academy www.raimanacademy.com Enjoy learning @ Raiman Academy Question number 2 (a) (i) B- 2 cm Answer Notes Marks 1 (ii) (b) C- 8 cm Idea that in a transverse wave the direction of vibration is perpendicular to the direction of the wave; (May be shown with labels on the diagram) Idea that longitudinal wave the direction of vibration is parallel to the direction of the wave; (May be shown with labels on the diagram) A named freehand sketch of either wave indicating the two directions; e.g. Allow (for vibration) oscillation / displacement / disturbance (for direction of wave) direction of travel / energy / transfer (for perpendicular) at right angles, is ⊥ to (for parallel) the same as, // the minimum labeliing is to name of the type of wave they have drawn. Allow sine waves with appropriate arrows Allow diagrams indicating compression and rarefaction e.g. in a spring transverse Allow for 1 mark (but only if other mark...

Words: 1883 - Pages: 8

Premium Essay

Student

...gender? Male • What is your household size? 2 people • What is your household income? $40,000.00 • What is your profession? Handling heavy machinery • What is your education level? High School Diploma Psychographic Questions • What did you find interesting about this product? It’s capability of taking photos • What are your thoughts about the product? It has a great resolution Buying Pattern Questions • Do you ever purchase electronics? YES • Where do you go when you are looking for electronics? On Web • How often do you purchase electronics? Once in a while • How long does it take you to make a buying decision? A few days • What is your typical budget for electronics? $200-$500 • How far would you travel to make the purchase? Around Windsor Benefits Questions • What features do you look for when you purchase electronics? Its quality • What specific benefits do you look for in electronics? Reliability • What motivates you to purchase electronics? Universal Trend • What needs are you trying to meet when you purchase electronics? Enhancing lifestyle • How do you hope electronics will make your life better? Time saving Customer Number 2 Interested in a gaming console • What is your age? 22 • What is your gender? Male • What is your household size? 4 people • What is your household income? $30,000.00 • What is your profession? Student • What is your education level? College Psychographic Questions • What did you find interesting about this product...

Words: 2014 - Pages: 9

Premium Essay

Question 2 C

...Question 2c Different Audiences can respond differently to the same media text for a range of reasons. Some could have oppositional readings and instantly disagree with what creators wanted the text to convey and its intended meaning. This could be down to many reasons such as the fact that they could have different backgrounds, ethnicities, beliefs and different experiences to what the producer is trying to show us, not allowing for a relatable or identifiable text or situation to provide and support the user gratification theory. Another factor could be purely down to the age of the viewer, they may not understand or agree, or wish to conform with what is being shown on screen. For example, the 2015 John Lewis advert would appeal to very different audiences. Typically a white, British, middle class, family orientated person would share a dominant reading and would ratify and agree with the producer’s intending meaning, as the John Lewis Christmas ‘persona’ has such a valuable part in Christmas culture in the middle classes, they would dismiss any obvious flaws such as space and science constraints and dive into a world of childish, Christmas fun in the touching way the producer intended. This would ensure the Middle class’s continued custom within the John Lewis department store chain. However, a Black, lower class citizen, not astute with British culture and subculture may not be able to relate to the advert and therefore not establish or continue custom at John Lewis. The...

Words: 382 - Pages: 2

Free Essay

Fgjhfjghj

...Number Mathematics A Paper 2 (Calculator) Foundation Tier Friday 13 June 2014 – Morning Time: 1 hour 45 minutes Paper Reference 1MA0/2F You must have: Ruler graduated in centimetres and millimetres, protractor, pair of compasses, pen, HB pencil, eraser, calculator. Tracing paper may be used. Total Marks Instructions Use black ink or ball-point pen. Fill in the boxes at the top of this page with your name, centre number and candidate number. Answer all questions. Answer the questions in the spaces provided – there may be more space than you need. Calculators may be used. If your calculator does not have a button, take the value of to be 3.142 unless the question instructs otherwise. Information The total mark for this paper is 100 The marks for each question are shown in brackets – use this as a guide as to how much time to spend on each question. Questions labelled with an asterisk (*) are ones where the quality of your written communication will be assessed. Advice Read each question carefully before you start to answer it. Keep an eye on the time. Try to answer every question. Check your answers if you have time at the end. Turn over P43380A ©2014 Pearson Education Ltd. 5/5/6/c2/ *P43380A0132* GCSE Mathematics 1MA0 Formulae: Foundation Tier You must not write on this formulae page. Anything you write on this formulae page will gain NO credit. a Area of trapezium = 1 2 (a + b)h h b Volume of...

Words: 2357 - Pages: 10

Premium Essay

Management

...Final Exam Mengjuan Huang MG637(1) Professor Clifford December 4, 2011 Question 1:Decision-Making 1.The definition of decision-making A decision is a choice between alternatives. Managers choose courses of action not only fro themselves but for their organization and other people. While people choose a job, it is not only for himself, but also for his family and friends. "Decision making is the process of identifying problems and opportunities and then resolving them." (Richard L. Daft, Chapter 9, Pp 238) The process of making a decision is to establish and achieve organizational goals and objectives. People choose jobs that help them reach the targets in their mind and have the promotional opportunities. 2. Using the seven-step decision making model to deicide to choose the best job The Seven-Step Decision Making Model developed by Rick Roberts of the University of North Florida Career Services includes identifying the decision to be made, self-assessment, identifying any options, gather data and evaluate the options, selecting one and designing a course of action(Rick Roberts, 2006). Step one: Identify the decision to be made According to my personal situation, such as currently employed, single, enjoy traveling. There are some problems and opportunities that should be concerned. The problem is that I have no job at present. Finding an appropriate job with good salary is on demand. What's more, I'm planning to get married in three months, if the job is too...

Words: 3109 - Pages: 13

Free Essay

Nt1210 Unit 1 Lab 1.1

...| | 4+ | 2 + | 0 = | 6 | 1.1.3 21↓ | 20↓ | | 2X | 1X | | 1____ | 1____ | | 2 + | 1 = | 3 | 1.1.4 24↓ | 23↓ | 22↓ | 21↓ | 20↓ | | 16X | 8X | 4X | 2X | 1X | | 1____ | 0____ | 0____ | 1____ | 0____ | | 16 + | 0 + | 0 + | 2 + | 0 = | 18 | 1.1.5 27↓ | 26↓ | 25↓ | 24↓ | 23↓ | 22↓ | 21↓ | 20↓ | | 128X | 64X | 32X | 16X | 8X | 4X | 2X | 1X | | 1____ | 1____ | 1____ | 0____ | 0____ | 0____ | 1____ | 0____ | | 128 + | 64 + | 32 + | 0 + | 0 + | 0 + | 2 + | 0 = | 226 | 1.1.6 156 | 28 | 28 | 28 | 12 | 4 | 0 | 0 | | 27↓ | 26↓ | 25↓ | 24↓ | 23↓ | 22↓ | 21↓ | 20↓ | | v | v | v | v | v | v | v | v | | 128x | 64x | 32x | 16x | 8x | 4x | 2x | 1x | | 1 | 0 | 0 | 1 | 1 | 1 | 0 | 0 = | 10011100 | 128 + | 0 + | 0 + | 16 + | 8 + | 4 + | 0 + | 0 = | 156 | 1.1.7 255 | 127 | 63 | 31 | 15 | 7 | 3 | 1 | | 27↓ | 26↓ | 25↓ | 24↓ | 23↓ | 22↓ | 21↓ | 20↓ | | v | v | v | v | v | v | v | v | | 128x | 64x | 32x | 16x | 8x | 4x | 2x | 1x | | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 11111111 | 128 + | 64 + | 21 + | 16 + | 8 + | 4 + | 2 + | 1 = | 255 | 1.1.8 200 | 72 | 8 | 8 | 8 | 0 | 0 | 0 | | 27↓ | 26↓ | 25↓ | 24↓ | 23↓ | 22↓ | 21↓ | 20↓ | | v | v | v | v | v | v | v | v | | 128x | 64x | 32x | 16x | 8x | 4x | 2x | 1x | | 1 | 1 | 0 | 0 | 1 | 0 | 0 | 1 | 11001001 | 128 + | 64 + | 0 + | 0 + | 8 + | 0 + | 0 + | 1 = | 255 | 1.1.10 | 2^7 | 2^6 | 2^5 | 2^4 | 2^3 | 2^2 | 2^1 | 2^0 | | 128...

Words: 552 - Pages: 3