This paperwork - ACC 422 Week 3 Discussion Questions - consists of: DQ 1: What is the purpose of depreciation? Does the book value of a fixed asset (cost minus accumulated depreciation) communicate to a user what the asset is worth? Explain why or why not. Should the financial statements reflect the value of fixed assets? Explain why or why not. DQ 2: What is an intangible asset? Should all intangible assets be subject to amortization? Explain why or why not. Why are some
Words: 361 - Pages: 2
Pendergrass Company hires an accounting intern who says that intangible assets should always be amortized over their legal lives. * Is the intern correct? No, this is incorrect. Intangible assets should not “always” be amortized over their legal lives. * Explanation Intangible assets are defined as Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance. The intangible assets are amortized over the established
Words: 301 - Pages: 2
Germany Ulf Andresen* Regulations Provide Further Guidance on the Application of the Authorized OECD Approach to the Attribution of Profit to Permanent Establishments The author considers the recently issued Regulations on the application of the authorized OECD approach under existing German tax treaties, specifically for the allocation of profit to permanent establishments. 1. Permanent Establishment Profit Attribution Regulations Issued On 13 October 2014, the Upper House (Bundesrat)
Words: 6508 - Pages: 27
ACCT3039 Advanced Managerial Accounting Graded Tutorial Activity No.3 Worth 5% of the overall grade Due by March 19th 2014. N.B. Students should note that this tutorial assignment should be submitted on a Word document by the due date stated above at the appropriate drop box on the Learning exchange. H is an investment group which owns a number of subsidiary companies. Each subsidiary produces a particular product, product range or service. For the purposes of management control, subsidiaries are
Words: 429 - Pages: 2
XYZ Research Company XYZ Research Company XYZ Research Company was incorporated in 2010 and centers on developing new technology for interplanetary exploration. The company has many patents and has historically expensed all the costs associated with obtaining their patents. The owners of XYZ Research Company are unsure whether patent costs that have been expensed can be capitalized and whether or not periodic impairment testing is required. I have been hired as a consultant to research
Words: 880 - Pages: 4
V. AMENDMENTS Amendments to IAS 16 Paragraph 62A has been added to prohibit the use of revenue-based methods of depreciation for items of property, plant and equipment. Paragraph 62A clarifies that this is because the revenue generated by an activity that includes the use of an item of property, plant and equipment generally reflects factors other than the consumption of the economic benefits of the item, factors such as: – Other inputs and processes – Selling activities and changes in sales
Words: 423 - Pages: 2
Mashkin Group Inc. One of those medium-size asset management companies based in USA, wholly owned subsidiary of a British financial corporation named Amir Inc., Mashkin group of companies operated in three different sectors (mutual fund company, asset management company and financial services company) but were closely affiliated to one another, as they shared the same consumer database and other software applications to manage their internal operations. The technology systems used within the company
Words: 294 - Pages: 2
ACC 4291 Integrated Case Study | Section 1 | Case Summary | # | 3 | Case Title | Living By Numbers - Value Creation or Profit? | Group 4 | Synopsis In December 2009, Hafiz Hashim is facing a dilemma. As the Chief Financial Officer (CFO) of MarineCorp Sdn Bhd and its two wholly-owned subsidiaries, he is in charge of reporting their financial performance to the Board of Directors. The three companies traditionally measured their performance using the Profit figure, but MarineCorp’s parent
Words: 603 - Pages: 3
Volvo Group Background: Concepts: a. The 2009 income statement shows research and development (R&D) expenses of SEK 13,193 (millions of Swedish Krona). What types of costs are likely included in these amounts? b. Volvo Group follows IAS 38 - Intangible Assets, to account for its research and development expenditures (see IAS 38 excerpts at the end of this case). As such, the company capitalizes certain R&D costs and expenses others. What factors does Volvo Group consider as it decides
Words: 918 - Pages: 4
Routine and Goodwill Emails Student’s name Course Lecturer’s name Institution Date ROUTINE EMAIL From: William Layne, public relations To: all employees Date: 24th Sept.2014 Subject: Budget Cutbacks Introduction Dear everyone, Hello, on behalf of the administration and management of this institution, I would like to bring some of the issues to your attention today. The main issue is on budget cutbacks. This is to inform you that the institution is currently faced with
Words: 988 - Pages: 4
