Memorandum to the File Date: September 15, 2015 From: Juanita Quiroz Re: Accounting treatment for the trademark and goodwill Facts Express Dry-Cleaning purchased Deluxe Dry-Cleaning. In the purchase, Express acquired a trademark with a current remaining useful life of five years. The trademark is renewable every ten years, and Express plans to continuously renew it. The annual impairment test shows the net assets (i.e. the carrying amount) of this reporting unit are $4,000,000, which includes
Words: 511 - Pages: 3
Question; Discuss accounting for investment, clearly indicating the IAS for the disclosure of investment. Accounting for Investments Introduction * This Standard deals with accounting for investments in the financial statements of enterprises and related disclosure requirements.1 This Standard does not deal with: (a) The bases for recognition of interest, dividends and rentals earned on investments which are covered by Accounting Standard 9 on revenue recognition; (b) Operating or
Words: 1318 - Pages: 6
Purpose entities (SPE) within publicly traded companies have special accounting rules that one must follow to be compliant with the Generally Accepted Accounting Principles (GAAP). When auditing a company that uses share-based payments and SPE’s this firm needs to be familiar with the proper standards of reporting. To ensure an efficient audit this memo will discuss the treatment of share-based payments as well as the accounting for consolidations relating to SPE’s. This will help in an effort to
Words: 1042 - Pages: 5
Accounting for Investments under FASB No. 115 – A Review |For commercial enterprises |Presentation on Financial |Change in Fair Value | |(nonprofit entities follow SFAS No.124) |Statements | | | | |Temporary |Other than | |
Words: 1180 - Pages: 5
Generally Accepted Accounting Principles (GAAP) are the standard framework of guidelines for financial accounting used in any given jurisdiction known as accounting standards or standard accounting practice. These include the rules that accountants follow in recording, summarizing and preparation of financial statements. Steps taken by FASB and IASB to move to fair value measurements for financial instruments and the ways their approaches differ The International Accounting Standards Board (IASB)
Words: 861 - Pages: 4
18, 19 13 21, 22, 23 7. Alternative valuations. 22 8. Disposition of assets. 23 Copyright © 2013 John Wiley & Sons, Inc. 1 Exercises 1, 2, 3, 5 1, 5, 6 2 1 3 14, 15 24, 25 Kieso, Intermediate Accounting, 15/e, Solutions Manual 4 1 (For Instructor Use Only) 10-1 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives Questions Brief Exercises Concepts for Analysis Exercises Problems 1, 2, 3
Words: 18805 - Pages: 76
chapter The Equity Method of Accounting for Investments The first several chapters of this text present the accounting and reporting for investment activities of businesses. The focus is on investments when one firm possesses either significant influence or control over another through ownership of voting shares. When one firm owns enough voting shares to be able to affect the decisions of another, accounting for the investment can become challenging and complex. The source of such complexities
Words: 22127 - Pages: 89
Answers Professional Level – Essentials Module, Paper P2 (INT) Corporate Reporting (International) 1 (a) Angel Group Statement of cash flows for the year ended 30 November 2013 Profit for the year (W1) Adjustments to operating activities Financial assets – profit on sale (W5) Retirement benefit expense (W7) Depreciation (W1) Profit on sale of PPE (W1) Associate’s profit (W3) Impairment of goodwill and intangible assets (26·5 + 90) (W6) Finance costs Movements in working capital Decrease in trade
Words: 5850 - Pages: 24
Street, London W1T 3JH, UK Accounting and Business Research Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/rabr20 International Financial Reporting Standards (IFRS): pros and cons for investors Ray Ball a a University of Chicago Published online: 28 Feb 2012. To cite this article: Ray Ball (2006) International Financial Reporting Standards (IFRS): pros and cons for investors, Accounting and Business Research, 36:sup1
Words: 16830 - Pages: 68
arbitrage price of a forward contract = spot rate x e (Rd-Rf) where Rd=rate of return on domestic investments and Rf=rate of return on foreign investments. I include an example of how firms can mimic forward contracts as part of the example on fair value hedges shown below. • Hedges are
Words: 3999 - Pages: 16
