To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com Chapter 1 Test Bank BUSINESS COMBINATIONS Multiple Choice Questions LO1 1. Which of the following is a reason why a company would expand through a combination, rather than by building new facilities? a. A combination might provide cost advantages. b. A combination might provide fewer operating delays. c. A combination might provide easier access to intangible assets. d. All of the above are possible
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name] | | Analysis by Page Table of Contents Analysis by Page 1 Introduction 2 Property and Equipment 3 Figure 1: Property and Equip Details 3 Intangible Assets 4 Figure 2: Review of Intangible Assets 4 Goodwill 6 Figure 3: Review of Goodwill 6 Liabilities 7 9 Other Capital Ventures 11 Works Cited 12 Introduction The Comcast Corporation is the largest cable and home internet provider in the United States. The company functions as a cable provider and ISP,
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Revenue recognition is covered under ASPE – section 3400 (Revenue): Private entities opting to use the ASPE for revenue recognition should use the ASPE guidance. The standard covers the sale of goods and the rendering of services by an entity in the ordinary course of business. Definition: * Revenue is the cash, receivables and other consideration coming into the business from its ordinary business activity. * The completed contract method recognizes revenue when the good or service has
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usually left out. • If discussed they were not sufficient. • Key assumptions include gross margin, government bond rates, exchange rate for the period, raw material price, inflation, market share, etc. • Comparative information is required Where goodwill or indefinite life intangibles have been allocated to a CGU (or group of CGUs), but no impairment has been recognized, reasonably possible changes in assumptions if such changes would cause the unit’s carrying amount to exceed its recoverable amount
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differential reflected in a consolidation worksheet to prepare a consolidated balance sheet immediately after the business combination is: A. $0. B. $25,000. C. $70,000. D. $45,000. Based on the preceding information, what amount should be allocated to goodwill in the consolidated balance sheet, prepared after this business combination? A. $0 B. $25,000 C. $70,000 D. $45,000 2. On December 31, 20X9, Add-On Company acquired 100 percent of Venus Corporation's common stock for $300,000. Balance sheet
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Module 9 Intercorporate Entities DISCUSSION QUESTIONS Q9-1. (a) Trading securities are reported at their fair value in the balance sheet. (b) Available-for-sale securities are reported at their fair value in the balance sheet. (c) Held-to-maturity securities are reported at their amortized cost in the balance sheet. For marketable securities, fair value and market value are usually synonymous. Thus, trading and available-for-sale securities are recorded on the balance sheet at market
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incurred in the formation of a corporation. 8. Operating losses incurred in the start-up of a business. 9. Training costs incurred in start-up of new operation. 10. Purchase cost of a franchise. 11. Goodwill generated internally. 12. Cost of testing in search for product alternatives. 13. Goodwill acquired in the purchase of a business. 14. Cost of developing a patent. 15. Cost of purchasing a patent from an inventor. 16. Legal costs incurred in securing a patent. 17. Unrecovered costs of a
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ftThere is one machine included in our non-current (fixed) assets that used to have a book value of £120 000 previously. However, we estimated that should we sell it in the market we would get £90 000 – but we would need to spend £1 000 on advertising costs to sell it. If we don’t sell it, it will produce cash inflows of £40 000 per year for the next four years, and £30 000 the year after (by the way, the company’s discount rate is 10%). After that, the machine’s useful life will come to an end.
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developed intangibles are capitalized. Question 10-5 Goodwill represents the unique value of the company as a whole over and above all identifiable tangible and intangible assets. This value results from a company’s clientele and reputation, its trained employees and management team, its unique business location, and any other unique features of the company that can’t be associated with a specific asset. Because goodwill can’t be
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Learning Objectives: At the end of the session, students should be able: 1) To define and differentiate significant influence, joint control and control. 2) To determine whether the investor can exert significant influence over an investee. 3) To determine when it is appropriate to use equity method in accounting for investments. 4) To understand the underlying principle of equity method. Reference: IAS 28: Investments in Associate and Joint Ventures I. Accounting for equity
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