Unless otherwise stated, I am comparing values from 2006 to 2007 in order to cut down on writing. Monetary values are in millions of dollars unless otherwise stated. Common-size balance sheet is attached. Cash, Cash Equivalents, and Restricted Cash Del Monte Foods exhibit a dramatic change in cash and cash equivalents going from 12% of total assets to 0.3% of total assets. In monetary terms, cash and equivalents fall from $459.9 to a mere $13. Del Monte Foods acquired two companies (Meow-Mix
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2,000,000.00 Acquisition Differential Allocated: Inventory(250000-350000) Goodwill 20% 580,000.00 3,580,000.00 3,000,000.00 580,000.00 (100,000.00) 680,000.00 (ii) Acquisition Differential Amortization and Impairment Schedule Inventory Goodwill Balance Jan 1, 20X2 (100,000.00) 100,000.00 -
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acquired a smaller competing company located in Spain, and this acquisition resulted in goodwill being recorded. Assume that (1) the activities in Spain represent the lowest level at which internal management monitors goodwill and (2) the Spanish operations represent a CGU under IFRSs and a reporting unit under U.S. GAAP. At the end of 2008 and 2009: Under IFRSs, the recoverable amount of the CGU, including goodwill, exceeded its carrying amount. Ida’s
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Chapter 1 Relevance, predictive value, faithful representation, completeness, neutrality, free from material errors Comparability, verifiability, timeliness, understandability Accrual, going concern and will continue in operation for the foreseeable future, materiality, conservatism principle Fair representation, must comply unless departure results in more faithful representation, going concern is used unless the management is aware otherwise (in which case disclosure is required) Current
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Client Understanding Paper 541 ACCOUNTING THEORY AND RESEARCH Client Understanding Paper As a newly hired Staff I, you are responsible for analyzing the work papers for one of the clients of your organization. Your client is not clear about why you are asking for information on the following topics: Adjusting lower cost of market inventory on valuation “The conservatism principle and a specific accounting pronouncement, Accounting Research Bulletin No. 43 (ARB No. 43) leads to an
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Partnership – Basic Considerations and Formation 1 CHAPTER 1 MULTIPLE CHOICE ANSWERS AND SOLUTIONS 1-1: a Jose's capital should be credited for the market value of the computer contributed by him. 1-2: b (40,000 + 80,000) ÷ 2/3 = 180,000 x 1/3 = 60,000. 1-3: a Cash P100,000 Land 300,000 Mortgage payable ( 50,000) Net assets (Julio, capital) P350,000 1-4: b Total Capital (P300,000/60%) P500,000 Perla's interest ______40% Perla's capital
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the topics you requested. The items addresses are as follows: 1. Adjusting lower cost or market inventory on valuation. 2. Capitalizing interest on building construction. 3. Recording gain or loss on asset disposal. 4. Adjusting goodwill for impairment. Adjusting lower cost or market inventory on valuation The term “inventory” applied to all the goods/materials that are acquired with the intention to resale to make profits, which includes: * “Are held for sale in ordinary course
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JOINT ARRANGMENTS UNDER AASB11 I. New terminology * AASB11 introduces the term ‘joint arrangement’. A joint arrangement is an arrangement under which two or more parties have joint control. * A joint arrangement has the following characteristics: * The parties are bound by a contractual arrangement * The contractual arrangement gives two or more of those parties joint control of the arrangement. Difference: Under AASB 131 the term ‘joint venture’ was used to describe
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chapter 21 Test your understanding 3 Hanford & Stopple Answer 1 (a) Hanford consolidated statement of financial position at 30 September 20X1 Noncurrent assets Property, plant and equipment (W8) Goodwill (W3) $000 $000 109,510 6,850 ––––––– 116,360 Current assets Inventory (7,450 + 4,310) Accounts receivable (12,960 + 4,330 – 820 (W7)) Bank 11,760 16,470 520 ––––––– 28,750 ––––––– 145,110 ––––––– Equity and liabilities Equity attributable to the equity holders of the
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Partnership – Basic Considerations and Formation 1 CHAPTER 1 MULTIPLE CHOICE ANSWERS AND SOLUTIONS 1-1: a Jose's capital should be credited for the market value of the computer contributed by him. 1-2: b (40,000 + 80,000) ÷ 2/3 = 180,000 x 1/3 = 60,000. 1-2: c 1-3: a Cash P100,000 Land 300,000 Mortgage payable ( 50,000) Net assets (Julio, capital) P350,000 1-4: b Total Capital (P300,000/60%) P500,000 Perla's interest ______40%
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