1,150  Eagle in Serbia: In Serbia, in 2008, Eagle acquired a smaller competing company and goodwill was allocated to the CGU shown below. Activities in Serbia represent the lowest level at which internal management monitors goodwill. At the end of 2008 and 2009, the value in use of the CGU including goodwill exceeded its carrying amount. Therefore the activities of Eagle in Serbia and the goodwill allocated to those activities were regarded as not impaired. However, at the end of 2010, the newly
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America and at the secondhand store Goodwill. To make my observations not so obvious I browsed the clothing sections and even tried items on. Macy’s was definitely more out of my comfort zone because it is so expensive and fancy. I even felt uncomfortable in the restroom. Another factor that increased my discomfort knew I didn’t look as well as the other customers. I was among individuals with purses that cost more than my mortgage. I felt uncomfortable at Goodwill, but not nearly as uncomfortable as
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................................................... The position of this research paper is to conduct the financial analysis of the Apple Company. The financial analysis of the Apple is based on the financial statement property and equipment, goodwill, intangible assets, depreciation methods, current liabilities, long-term liabilities, bonds payable, and capital leases. Apple Inc. is a company which is formed with the philosophy of continuous innovation. Unlike any other
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of the country. Moreover, there are relatively fewer sellers that any one company's actions have little direct impact on rival's business. Products of rival competitors were also somehow different in approach as to which, say, Fully Booked and Goodwill Bookstore focus on book retailing rather than offering school supplies. Even if firms compete with same books and other materials, the pricing strategy of NBS is relatively lowest among rivalry. This has been one of the advantages of NBS throughout
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Role: • An accounting advisor engaged by a lawyer to help with concerns about an earnout arrangement (payment for the purchase of a business based on performance after the sale has closed). Key users: • Ms. Kellett and Mr. Jones are the only relevant users. Ms. Kellett will use the report to assist her in assessing the earnout agreement. Key facts: • Earnout arrangement being proposed for sale of company. • Selling price will depend on earnings after the sale closes and buyer (role is working
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be explaining and analyzing the following issues for the customer. Adjusting lower cost of inventory on market valuation, interest Capitalizing on building construction, Recording gain or loss on asset disposal and finally the theme adjusting for goodwill impairment Adjusting lower cost in market inventory on valuation Inventories are necessary for companies because it is a fundamental part of the business operation. They seek to retain control of the articles of tangible property of a company.
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On the balance sheet inventory is listed in the current assets section. As a current asset, inventory is viewed by users of financial statements as an asset that may be readily converted to cash if needed. In line with the historical cost principle, the valuation of inventory is solely based on the amount the inventory was purchased for. However, if the value of the inventory decreases below the original cost, then when valuing inventory the historical cost principle must not be used in this case
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retention is important because it will have a huge impact on customer value and goodwill impairment. The following table will illustrate how different retention rates can affect goodwill impairment. For the next step, we will ask management for historical customer attrition data or other support to confirm the accuracy of the 75% retention rate assumed. Retention Rate | Customer Relationship value | Goodwill | Goodwill Impairment | 65% | 21 | 27 | 130 | 70% | 24 | 24 | 133 | 75% | 28 | 20
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Chapter 5 Consolidation Subsequent to Acquisition Date A brief description of the major points covered in each case and problem. CASES Case 5-1 In this case, students must discuss how to value employees and patentable products and how these assets should be amortized or checked for impairment on an annual basis. Case 5-2 (prepared by Peter Secord, Saint Mary’s University) In this real life business combination, students are directed to identify
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GAAP ACCOUNTING FOR PARTNERSHIPS Formation [i]. The Revised Uniform Partnership Act defines a partnership as a. Any association of two or more persons or entities. b. An association of two or more persons to carry on as co-owners a business for profit. c. A separate legal entity for most legal purposes. d. An entity created by following statutory requirements. Gleim [ii]. The partnership agreement is an express contract among the partners (the owners of the business). Such an
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