appropriate because of this is not as per the SEC standard of 5-7 years. 2. What would be the impact on Blockbuster's 1988 earnings per share if 5 amortization were applied to this goodwill? If the 5-year amortization were applied in its place of the 40-year timetable, then it is necessary for Blockbuster to identify the goodwill in larger amounts. This would increase tax liability of Blockbuster, which would have represented a loss of $0.09 (0.58 - 0.49) per share | 1988 | 40 Yrs. Total | 5 Yrs.
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Chapter 3 AN INTRODUCTION TO CONSOLIDATED FINANCIAL STATEMENTS Chapter Outline A BUSINESS COMBINATION UNDER GAAP INCLUDES COMBINATIONS IN WHICH ONE OR MORE COMPANIES BECOME SUBSIDIARIES OF A PARENT CORPORATION. A A corporation that holds a majority interest (over 50%) of the voting stock of another corporation is referred to as the parent company. B The interest not held by the parent company is referred to as the noncontrolling interest. C A corporation whose outstanding voting
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a brand name must be built, often over long periods of time. At SWA, job descriptions are informal and employees pitch in to “get the job done.” Pilots may help load luggage to ensure an on-time departure; flight attendants clean airplanes to help turn them around at the gate within 15 minutes from arrival to departure. This allows SWA to keep its planes flying for longer and thus lowers its cost structure, savings which SWA passes on to passengers in lower ticket prices. Southwest airlines which
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measurement was shifted to focus on management accounting (AASB 2010, p.16), and the results need to be reconciled (AASB 2010, p.16). Thirdly, internal cross segments sales revenue can be counted for segment reporting purpose (AASB 2010, p.17). Lastly, goodwill
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text messaging, e-mails, and Web-sites. Nonverbal communication is the use of pictures or the delivery of interpersonal nonverbal signs of representation. An important factor of communication is to understand and know the audience and their needs. Goodwill plays an important role in the success of a company. How companies treat their customers and employees will increase sales and productivity (Locke & Kienzler, "1," 2008). The day-to-day communication starts when employees come to work and punch
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Communication is the most critical aspect of managing a business. Everyday businesses doors are closed and people lose jobs. A major problem is miscommunication between employees and their roles. Business owners and their employees need to understand that communicating is vital. Most businesses are held together with social media or many new technology inventions. Understanding how to use technology and why they it is so important is imperative. We are going to take a look into the advances, creations
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1. IAS 16 PROPERTY PLANT AND EQUIPMENT This standard regulates the measurement, recognition, derecognition and disclosure requirements of non-current assets and its related expenditure or income in the financial statements. It also defines the scope of it by stating clearly all assets falling within it. 1.1. Definition Property, plant and equipment refer to all tangible non-current assets used in the production or supply of goods and services, for administrative purpose or for rental to others
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University of Melbourne DEPARTMENT OF ACCOUNTING SEMESTER 1, 2014 SUBJECT CODE: ACCT 90013 SUBJECT NAME: FINANCIAL ACCOUNTING Student Declaration I / we declare that: 1. This submission is our own work 2. The submission is based on our own research and analysis 3. All sources are documented in the assignment 4. All participants contributed equally to this joint submission Student number 1 2 3 4 594130 644502 579471 517355 Signature Jie Yang Anqi Li Xi Zhao Lei Fu Date 6 May 2014 6 May
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taxes collected from them. Hence business is the pivotal part of the economy. Non profit company do not have to pay taxes. Most non profit company has volunteers. Goodwill is a non-profit company they pay give jobs to people that is on wailfar or is unemployeed. Goodwill sell there stuff relly cheap. The proucect is donated to Goodwill. They are no-profit company. Red cross is a non-profit company. They have volunteers. They give blood to hospitales. That are in need of blood.They also help with
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liabilities acquired. The latter are recognised at fair value as a result of this process. The residual amount in these calculations is classified as goodwill or gain on bargain purchase. Understanding the nature of goodwill is critical to understanding how to account for it. With the existence of the accounting standard on impairment of assets, goodwill is not required to be amortised. If a gain arises, current income is increased to recognise a bargain purchase. With the release of an Exposure
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