The Impairment of Goodwill As regulated by U.S. GAAP & IFRS By Russell Wickham Franklin University Dr. Thomas Hrubec The Impairment of Goodwill As Regulated by U.S. GAAP & IFRS Introduction Goodwill is an intangible asset that usually arises from the acquisition of a business. When the purchase price is determined, the difference between the purchase price and the fair market value of the net assets, i.e. fair market value of the assets minus the fair market value of the liabilities
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On September 15, 2009, the Accounting Standards Codification (ASC) became effective causing all previous GAAP literature to become nonauthoritative. The ASC was constructed to simplify and reduce the time required to perform accounting research. It is accessible to subscribers at https//.asc.fasb.org and provides a one stop shop for authoritative GAAP related material. It was many years in the making and made possible by contributions from hundreds of accounting professionals working towards the
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GASB and FASB Analysis The Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) each contain an imperative position in the domain of accounting. Persons who desire to retain a career in accounting are compel to acquire a profound understanding of both standards boards. Accordingly, the pursuing analysis will elucidate the objectives for the GASB and FASB as well as illuminate the similarities and differences among the two standards boards. In addition
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Jose Vargas Phoenix Accounting 211 Dr. Freeman GAAP vs. IFRS Different accounting standards for business transactions are a problem in comparing financial results of different entities from different countries. As a solution, by our country accepting one standard, an international standard it would allow them to be assessed in a more comparable manner across the board. The United State of America with just a handful of other countries have in the past have used accounting guidelines based off
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theme Revenue Recognition R evenue is usually the largest single item in financial statements, and the issues involving revenue recognition are among the most important and difficult ones that standardsetters and accountants face. In recent years, concerns related to the recognition of revenue in accordance with Accounting Standards have heightened significantly. Quite often, companies end up tweaking the Revenue numbers, besides some other reasons. Recording revenue improperly is also a
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The standards setting process is a very complex but necessary process in the accounting world. The Financial Accounting Standards Board accomplishes this mission through a comprehensive and independent process that encourages broad participation, objectively considering all stakeholder views, and by being subjected to oversight by the Financial Accounting Foundation’s Board of Trustees. Through these few necessary requirements they help form a very effective and sound standard setting process.
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International Financial Reporting Standards Colin Erskine DU- Accounting 301 03/13/2014 International Financial Reporting Standards “Over the last decade, progress has been made to harmonize financial accounting standards and practices into one set of single standards to be implemented by businesses domestically and internationally” (Harper, A. Leatherbury, L. Machuca, A. Phillips, J.). There has been some controversy among accounting professionals regarding the impact that switching to
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The Security and Exchange Commission’s debate over whether to accept the International Financial Reporting Standards as an alternative to the United States’ Generally Accepted Accounting Principles remains undecided. In February 2010, the SEC generated an IFRS Work Plan in order to promote the development of a single set of high-quality, globally accepted accounting standards. The Work Plan consists of six key areas. The first of these focus on the ability of IFRS to be comprehended, to be consistent
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Final Paper ACC 305: Intermediate Accounting I The Financial Accounting Standards Board (FASB) was established in 1973 in order to create and develop standards of financial accounting and reporting for the general use of the public and, in particular, users of financial information including auditors, creditors and investors. This financial information is standardized for greater clarity for the guidance and education of users (FASB org, 2009a). The primary purpose of FASB as a private and
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Assumptions of accounting provide a foundation for the accounting process. There are two main assumptions the monetary unit assumption and the economic entity. The monetary unit assumption requires that companies include in the accounting records only the transactions data that can be expressed in terms of money. This type of assumption allows accounting to see a quantity or measure of economic events. This is vital for the company to apply the cost principle. This type of assumption also prevents
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