Chapter 2 – Consolidation of Financial Information FASB allows reporting for businesses combined using the acquisition method. The acquisition method embraces a fair value measurement attribute. * Adoption of this attribute reflects the FASB’s increasing emphasis on fair value for measuring and assessing business activity. * In the past, reporting standards embraced the cost principle to measure and report the financial effects of business combinations. Expansion Through Corporate
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Intermediate Accounting II Week 1 Assignment: Intangible Assets 01/08/15 E12-1 (a) Indicated which items on the list above would generally be reported as intangible assets in the balance sheet. 1. Purchase cost of a franchise. 2. Goodwill acquired in the purchase of a business. 3. Cost of purchasing a patent from an inventor. 4. Legal costs incurred in securing a patent. 5. Unrecovered costs of a successful legal suit to protect the patent. 6. Cost of purchasing
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turnover/ return on assets. In 2013, J&J reported three different types of long-lived assets on their Consolidated Balance Sheet. The first kind reported was Plant, Property, and Equipment. The second one was Intangible Assets and third was Goodwill. We will be investigating these three assets in further detail. J&J reported $16,710 million net worth of PP&E. Within this major asset category are many sub accounts: Land & Improvements, Building & Building Equipment, and Construction
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How the Equity Method Relates to Consolidated Financial Statements As we'll see, the equity method is in many ways a partial consolidation. If a company acquires more than 50% of the voting stock of another company, it's said to have a controlling interest, because by voting those shares, the investor actually can control the company acquired. The investor is referred to as the parent; the investee is termed the subsidiary. For reporting purposes (although not legally), the parent and subsidiary
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Deloitte guidance FASB ASC-805-20-55-20, 805-20-55-55 **SEC S99-3: At bottom of 805 stds page Conclusion: GAAP-Tom’s The exclusive supplier contracts Tom’s acquired from RLS are identifiable intangible assets, and are accounted for separately from goodwill as prescribed by ASC 805-20-55. Additionally, the non-exclusive, non-contractual customer relationship with Farming Depot acquired by Tom’s is an
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related to the nature of business acquired; in this case video stores. 2. What would be the impact on Blockbuster's 1988 earnings per share if 5-year amortization were applied to this goodwill? The application of a 5-year amortization timetable impacts the amounts that would have to be recognized as the goodwill, which would decrease Blockbuster’s net income and hence their 1988 earnings per share. 3. What would have been the effect on earnings per share if Video Superstore purchases were
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1 Chapter 4 study guide 1. What are the types of differences that exist between IFRS and U. S. GAAP? 2. The International Accounting Standards Committee (IASC) issued a total of ______ International Accounting Standards (IAS) during the period 1973–2001. 3. The International Accounting Standards Board issued a total of ______ IFRS from 2001 to present. 4. In many cases, IFRS are more flexible than U.S. GAAP. True or False? 5. Inventory is an example of IAS that provides less extensive guidance
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University of San Jose – Recoletos Junior Philippine Institute of Accountants Quizbowlers’ Society 2014-2015 TUTORIALS IN ACCOUNTING 2 PARTNERSHIP DISSOLUTION 1. Once and Twice are partners with a capital balances of P250,000 and P200,000, sharing profits and losses 70:30. The partners are admitting Thrice as a new partner with a 25% interest for his investment of P180,000. Before admission, Once and Twice will revalue the partnership’s assets. If the net increase in the partnership’s assets
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Chapter 4 study guide 1. The International Accounting Standards Committee (IASC) issued a total of ______ International Accounting Standards (IAS) during the period 1973–2001. 2. The International Accounting Standards Board issued a total of 14 _____ ________ _______ ______ from 2001 to present. 3. In many cases, IFRS are more __________ than U.S. GAAP.. 4. Inventory is an example of IAS that provides less extensive guidance than U.S. GAAP. a. True/False 5. What should include in the cost
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approach FASB 144 establishes a "primary-asset" approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used Goodwill is included in
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