1. How is goodwill measured in a business combination? ASC 805-30-30-1 Measurement of Goodwill Currently Viewing: 805 Business Combinations 30 Goodwill or Gain from Bargain Purchase, Including Consideration Transferred 30 Initial Measurement General > Measurement of Goodwill 30-1 The acquirer shall recognize goodwill as of the acquisition date, measured as the excess of (a) over (b): * a. The aggregate of the following: * 1. The consideration transferred
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03 Chapter - Consolidations--Subsequent to the Date of Acquisition 1 Answers to Discussion Questions How Does a Company Really Decide which Investment Method to Apply? Students can come up with literally dozens of factors that should be considered by Pilgrim in making the decision as to the method of accounting for its subsidiary, Crestwood Corporation. The following is simply a partial list of possible points to consider. Use of the information. If Pilgrim does not monitor its own income levels
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2012 | Re: | Goodwill Impairment Test | | | Galaxy Sports Inc. is a manufacturer of sports equipment. It is a public company with three reporting units: Fitness Equipment, Golf Equipment, and Hockey Equipment. During our audit, certain accounting treatments by Galaxy regarding goodwill impairment were found to possibly contradict with the Accounting Standard Codification. Based on my research of the ASC, my recommendations are that management should perform an interim goodwill impairment test
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Consolidation-Date of Acquisition Chapter 4 • Consolidated statements bring together the operating results and financial position of two or more separate legal entities into a single set of statements for the economic entity as a whole. • To accomplish this, the consolidation process includes procedures that eliminate all effects of intercorporate ownership and intercompany transactions. 4-2 Consolidation As Of The Date Of Acquisition McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill
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(long-term) assets because they produce benefits over several years. They are valuable because they provide rights and privileges to their owners. Examples of intangible assets are: trademarks, copyrights, patents, franchises, customer lists, and goodwill. Intangible assets have the following classifications: 1. Purchased vs. internally created intangibles 2. Limited-life vs. indefinite-life intangibles ← Purchased intangibles are recorded at the cost incurred to purchase an intangible
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Eaton Corporation recently made an acquisition of Cooper Industries. Eaton Corporation was founded in 1911 by Joseph Eaton. Eaton Corporation specializes in diversified power management. Its primary business focus is on the Electrical Sector; however, it does have four other segments in Truck, Aerospace, Hydraulics, and Automobile and has businesses both domestic and international. Eaton has over 72,000 employees worldwide and sells products to more than 150 countries. According to its 2011 annual
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160 (NonControlling Interests in Consolidated Financial Statements) are as follows: a. to improve the relevance, comparibility, and transparency of financial information related to business combinations. b. to eliminate the amortization of Goodwill. a and b only 5. A business combination in which the boards of directors of the potential combining companies negotiate mutually agreeable terms is a(n) a. agreeable combination. b. friendly combination. c. hostile combination
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| IFRS 3 Business Combinations and related amended versions of IAS 36 and IAS 38 IFRS 3 supersedes IAS 22 | 1 April 2004 | Generally: Business combinations agreed to after 31 March 2004. Special provisions for previously recognised goodwill, negative goodwill, intangible assets, and equity accounted investments. | 29 April 2004 | Exposure Draft of Proposed Amendments to IFRS 3 Combinations by Contract Alone or Involving Mutual Entities. After considering comments on this ED, the Board decided
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Table of Contents: Pg. 3…………………………………………………………………………………………….Introduction Pg. 4…………………………………………………………………………………………….P, P, &E Pg. 4…………………………………………………………………………………………….Figure 1: P,P,&E Balance Sheet Pg. 5…...............................................................................................Figure 2: Depreciation Life Pg. 5……………………………………………………………………………………………..Income Tax Depreciation Pg. 5……………………………………………………………………………………………..Intangible Assets Pg. 6….............................
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Accounting Regulation and Treatment of Patents XYZ Research Company Case Study You have been hired as a consultant for XYZ Research Co. XYZ Research Co. incorporated in 2010. XYZ ‘s business centers on developing new technology for interplanetary exploration. The company has many patents and has historically expensed all of the costs associated with obtaining their patents. The owners of XYZ Labs are unsure whether or not if any or all of its patent costs can be capitalized. They also are unsure
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