Goodwill: Apple, Inc. tests their goodwill and intangible assets for impairment at minimum, annually. They may even sooner depending on when the events of changes in circumstances show that these assets may be impaired. Therefore, Apple does not amortize their goodwill and intangible assets with indefinite useful lives. Intangible assets with definite useful lives are amortized over a period of their useful lives, and after are reviewed for impairment. Currently, Apple’s acquired intangible assets
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THE IMPACT OF FINANCIAL REGULATIONS ON MERGERS & ACQUISITION OF BUSINESSES. Presented By Kofi Frimpong-Aninakwa To Dr Jeffrey Glover California Intercontinental University September, 2014 Abstract In the current global economy, corporations do businesses within their domiciled countries or have become transnational and have to perform at a multinational level. In order to achieve such expansion, corporations acquire other companies or merge
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8mortisation development and advertising costs operating lease interest cost • ••• • •• • • • • •• ••••• • •• •• •••• • • • •• • x x X X x X X Deduct: econ o mic depreciation impairment to the value of goodwill amortisation of development and advertising costs =NOPAT (X) (X) (X) X •• 0 . 0 • • • . I i i i i Arnortisation of developmenV advertising costs These should be capitalised and amortised (as
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recognize related to this investment? A. $24,000. B. $75,000. C. $99,000. D. $51,000. E. $80,000. On January 1, 2011, Pacer Company paid $1,920,000 for 60,000 shares of Lennon Co.'s voting common stock which represents a 45% investment. No allocation to goodwill or other specific account was made. Significant influence over Lennon was achieved by this acquisition. Lennon distributed a dividend of $2.50 per share during 2011 and reported net income of $670,000. What was the balance in the Investment in Lennon
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to: Dr. Jonathan Stanley from: Christopher Michael Yelvington subject: IFRS v. US GAAP: Business COMBINATIONS and Financial Statements. date: April 21, 2015 ------------------------------------------------- Dr. Stanley, When acquiring a foreign subsidiary, there are accounting differences that one must consider. Looking at the big picture U.S. GAAP is more rule based and IFRS is more principles based. Under IFRS, more emphasis is on the substance of transactions and more judgment is used. In this
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1. Parent purchased Subsidiary on January 1, 2014. The excess of investment cost over book value of $210,000 was allocated entirely to a 10-year royalty agreement. Subsidiary regularly sells merchandise to Parent. In 2015, inter-company sales amounted to $123,960, with $27,558 of deferred profit remaining in ending inventory. Year-end inter-company receivables/payables amounted to $40,300. In 2016, inter-company sales amounted to $123,960 with $35,330 of deferred profit remaining in ending
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PART 7: ACCOUNTING FOR EQUITY INTERESTS IN OTHER ENTITIES Chapter 24 Accounting for group structures 1. The consolidated financial statements provide an aggregation of the financial statements of a group of separate legal entities to provide financial statements drawn up to reflect a perspective of the group as a single economic entity. Therefore, the purpose of providing consolidated financial statements is to show the results and financial position of a group as if it were operating as a single
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Inventory sold Sub sold inventory to Parent at $20K, sub COS$10K A 1 | 2003 | | | | | | | | Parent | Sub | Dr | Cr | Consolidation | | Sale | | 20,000.00 | | | | | COS | | 10,000.00 | | | | | Gross Profit | | 10,000.00 | 10,000.00 | | | | | | | | | | | Inventory | 20,000.00 | | | 10,000.00 | 10,000.00 | | | | | | | | a 2 | Parent sold half of inventory b4 June 03 | | | | | Parent | Sub | Dr |
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Homework Chapters 4-6 4-1) A 2009 Investment in Song Company 387,000 Cash 387,000 Cash 20,000 Dividend Income 20,000 2010 Cash 40,000 Dividend Income 40,000 2011 Cash 28,000 Investment in Song Company 28,000 Partial Equity Method 2009 Investment in Song Company 387,000 Cash 387,000 Investment in Song Company 50,800 Equity Income 50,800
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Accounting II Table of Contents: Introduction ................................................................................... 3 Report- Property and Equipment ................................................... 4 Report- Intangible Assets and Goodwill ......................................... 5 Report- Depreciation ..................................................................... 6 Report- Impairment ....................................................................... 7 Report- Current
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