engaged Big Time LLC to perform three annual ASC 350, Intangibles- Goodwill and Other, impairment analysis on the $360 million (composed of $200 million from Fitness Equipment, $130 million from Golf Equipment, and $30 million from Hockey Equipment) of goodwill recorded by Galaxy as of December 21, 2011. Big Time completed Galaxy’s December 31, 2011 Goodwill Impairment Analysis and determined that Galaxy passed step 1 of the annual goodwill impairment test for each reporting unit. During the first quarter
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1a. Since Country A GAAP does not amortize goodwill, there is no goodwill amortization expense in Country A. Therefore, when reconciling, the goodwill amortization expense deduced under SKD GAAP should be added back to Country A income. Similar to SKD GAAP, Country B GAAP also amortizes goodwill, but in a much faster pace. That is, goodwill is amortized over a 5-year period in Country B rather than in a 20-year period under SKD GAAP. Therefore, the annual amortization expense in country B
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Impairment Loss of Eagle in Serbia 1. Impairment of Goodwill under GAAP and IFRSs - Two-step approach for testing goodwill impairment under U.S. GAAP (FASB ASC-350-20-35) 1) If assets’ fair value of reporting unit is greater than the carrying amount including goodwill, there is no impairment. 2) If there’s impairment indicated by step 1, then compare implied fair value of goodwill with carrying amount. Implied fair value of goodwill is obtained by deducting the fair values of all the reporting
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Client Understand Paper Accounting Theory and Research/ ACC 541 November 21, 2011 To provide your organization accurate financial data, reports and statements, we follow rules developed according to Generally Accepted Accounting Principles (GAAP). Based on GAAP, it is important that we follow certain rules and have accurate client information. You have asked why we are asking for certain information related to certain topics within your organization. An explanation as to why we are asking
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Goodwill Profile of people who shop at Goodwill 1. Do you shop at Goodwill? (If you answered no, please skip to Q…) * Yes * No 2. Within the past year, on average, how many times did you shop at Goodwill? * 0 * 1-2 times a year * 3-4 times a year * 5-6 times a year * More than 6 times a year 3. How did you find out or hear about Goodwill? * Television * Radio * Newspaper * E-mail * Direct Mail * Website * In-person * Word
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Midterm exam: 12-15 multiple choices, 6 short problems (like goodwill allocation and E&R), chapter 6 only the land * Chapter 1: equity method of accounting, recording a acquisition (look for whether or not we are purchasing equity or just assets and liabilities, is there any subsidiary continuing) * Chapter 2: acquisition method, review key; intangible, goodwill (amortizable, impairment); Acquisition has contingent consideration (treated as part of consideration); in process R&D (treat
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“Weak Signal: Evidence of IFRS and US GAAP Convergence from Nokia’s 20-F Reconciliations” Nokia was created in 1967 through a merger and has become one of the world’s leaders in mobile communications and electronics. The Finland based company gained a lot of power through acquisitions within the telecommunication and electronic market, made around the 1980’s. The company is now specializing in four segments, mobile phones, multimedia, enterprise solutions, and networks. Nokia has ADRs (American
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and B Ltd): Accounting for a business combination: basic principles IFRS 3 prescribes the purchase method in accounting for a business combination. The key steps in this method are: The above steps result in determining the existence of any goodwill or excess on combination. 1 Accounting for a business combination: identifying the acquirer The business combination is viewed from the perspective of the acquirer The acquirer is “the combining entity that obtains control of the other combining
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a. The share price reaction to the missing inventory, writeoffs of restructuring costs and goodwill writedowns does not suggest the securities market inefficiency. First we discuss how we define the securities market efficiency. According to the efficient-market hypothesis (EMH), the financial markets are “informationally efficient”. That is, no one can consistently achieve returns in excess of average market returns by using any information that market already knows. That means when the investment
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Gator Electronics elected not to perform the qualitative assessment for determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and proceeded with Step 1 of the quantitative two-step goodwill impairment test for all reporting units. On the basis of the valuation prepared by Management’s Expert, Gator estimated that the fair value of all of the reporting units exceeded their respective carrying values and no Step 2 analysis was required
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