value of the net identifiable assets (identifiable assets less liabilities assumed) acquired” (Fraser, Ormiston, 2013). What are the key factors in the creation of business goodwill? These are going concern, excess business income & the expectation of future economic benefits. Within a business they are three sources of goodwill. These are as follows: * Expertise of the workforce which states that there is no value included on the balance sheet as an asset for costs incurred for labor
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with varying vintage years which is the number of years the allowance may be used. Polluter Corp. EAs were to be used between 2010 and 2030 which is substantial time. Once the company received their receipt they record the EAs as intangible assets with a cost basis of zero, in accordance with The Federal Energy Regulatory Commission (FERC). FERC is accounting guidance for EAs so companies understand rules and regulations associated with the allowance. Governing bodies generally issue rights
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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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Face-to-face hand-in #3 Due: Session 3 Topic: Capital Assets In this face-to-face we will consider the implication of information about capital assets on the financial statements. Parts 1 and 3 will use the financial statements of Nestlé Group, which are posted in the Face-to-Face tab on the Blackboard content page. The questions, in three parts, are on the next pages. Submission Requirements * You must hand in your face-to-face submissions at the beginning of the class. TAs will pick
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presented below and determine where the following accounting terms would be located. Topical Categories: Section # General Principles ................................... 100 Presentation .............................................. 200 Assets........................................................... 300 Liabilities...................................................... 400 Equity........................................................... 500 Revenue.................................
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appropriation ASSETS of result) 31 december 2013 31 december 2014 FIXED ASSETS INTANGIBLE FIXED Goodwill Development ASSETS costs, Customer Lists, Trade Marks 9 572.011 2 745 260 3 190 670 4. 11 5. 795 7.306.465 TANG IBLE FIXED Buildings Machinery Equtpment 12.317 271 ASSETS 9,075.460 2.410.044 637,958 77,476 9 646 262 2.468,589 932.168 240.370 Vehicles 13 287.389 FINANCIAL FIXED 12 200 938 5.218 5.218 ASSETS Investments
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Conceptual Framework A conceptual framework establishes the concepts that underlie financial reporting. Conceptual framework includes objectives, qualitative characteristics, elements, measurement, and recognition concepts. The FASB Concepts Statements guide the board in developing accounting principles and provide understanding. These concept statements are non-authoritative and do not establish generally accepted accounting principles. Entities do not use the FASB Concept Statements in routine
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(8) (8) (9) Bad debts (3) (6) (4) Finance income from credit sales 1 3 3 Profit before tax 105 135 123 Tax expense (26) (34) (31) Profit for the period 79 101 92 Balance sheets as at 31 March 2012 2013 2014 £m £m £m Intangible Fixed Assets 37 42 50 Tangible Fixed Assets 175 204 214 Inventory 235 308 292 Receivables 103 139 168 Cash 54 53 44 604 746 768 Share capital 80 80 80 Reserves 219 220 212 299 300 292 Long-term loans 75 173 184 Trade payables 55 71 71 Liability to the bank:
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Rocky Mountain Chocolate Factory Inc.— Preparing Financial Statements Teaching Notes: This case introduces students to the preparation of financial statements. Students are required, first, to consider the industry in which Rocky Mountain Chocolate Factory operates and determine the kinds of line items that would appear on the company’s balance sheet. Thus, the case encourages students to consider the broader business environment in which the company operates. The case gets students to use a spreadsheet
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depreciation as well as the knowledge of understanding the formula. While attempting to give the correct answer to this week exercise, I’m having trouble. Please review this exercise with much clarity. I really enjoy learning the concepts of plant assets. The problem solving for calculating the land, including sales tax, attorney fees, broker fees, and insurance was very helpful. This really helps with knowing the basis of accounting. I look forward to expanding my knowledge for the accounting basics
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