many challenges to the successful management of individuals and groups. 1 © Thinkstock C H A P T E R L E A R N I N G O B J E C T I V E S Reading this chapter will help you do the following: 1. Learn who managers are and about the nature of their work. 2. Understand the importance of leadership, entrepreneurship, and strategy within organizations. 3. Know the dimensions of management articulated in the planning-organizing-leadingcontrolling (P-O-L-C) framework. 4. Understand the relationship
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filed with the U.S. Securities and Exchange Commission (“SEC”), A2 Auto has disclosed within Note 24, Segment Information, that it has four operating segments: (1) A2 Americas, (2) A2 Asia Pacific, (3) A2 Others, and (4) Financial Services. Note 12, Goodwill and Other Intangibles, disclose that A2 Auto has the same four reporting units. ACCOUNTING QUESTIONS 1. What are the appropriate criteria for the grouping of long-lived assets to be held and used for impairment testing purposes? 2. On
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(4) Impairment of Goodwill. The goodwill related to the Clothing and Apparel unit appears to be impaired. FASB ASC 350-20-35 requires a write-down when the carrying value of the unit is greater than its fair value (market value); there is no consideration of “undiscounted estimated future cash flows” as is the case with the equipment in the latter part of this solution. The impairment is equal to $1,100,000 ($12,600,000 – $11,500,000). Therefore, the $1,200,000 in goodwill should be written
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All ACCOUNTING STANDARDS Accounting Standards are the defined accounting policies issued by Government or expert institute. These standards are issued to bring harmonization in follow up of accounting policies. Presently, Institute of Chartered Accountants of India has issued 29 Accounting Standards as listed below. AS 01. AS 02. AS 03. AS 04. AS 05. Policies AS 06. AS 07. AS 08. AS 09. AS 10. AS 11. AS 12. AS 13. AS 14. AS 15. AS 16. AS 17. AS 18. AS 19. AS 20. AS 21. AS 22. AS 23. AS 24. AS 25
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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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Dataline A look at current financial reporting issues No. 2012-17 November 12, 2012 What’s inside: Overview .......................... 1 SEC filing deadlines ........ 1 Financial statement disclosure ......................2 Income statement classification of losses..............................2 Insurance .........................3 Asset impairments .......... 5 Non-impairment costs ............................... 7 Debt and liquidity issues ........................... 8 Tax considerations
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practice, which is required by the SEC is around five to seven years and it needs to be related to the nature of business acquired; in this case video stores. 2. What would be the impact on Blockbuster's 1988 earnings per share if 5-year amortization were applied to this goodwill? The application of a 5-year amortization timetable impacts the amounts that would have to be recognized as the goodwill, which would decrease Blockbuster’s net income and hence their 1988 earnings per share. 3. What
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Intangible Assets A. Classification--intangible assets are assets that derive their value from the rights and privileges granted to their owner, are long-term in nature, and lack physical substance B. Valuation 1. Cost--cost is the cash or cash equivalent price of obtaining the intangible asset and making it ready for its intended use a. Purchased Intangibles--the cost of a purchased intangible asset is determined in essentially the same
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| | |Introduction to | |Public Relations | | | Unit 1
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the equity method of accounting for investments Chapter Outline I. Three methods are principally used to account for an investment in equity securities along with a fair value option. A. Fair value method: applied by an investor when only a small percentage of a company’s voting stock is held. 1. Income is recognized when dividends are declared. 2. Portfolios are reported at fair value. If fair values are unavailable, investment is reported at cost. A. Consolidation: when
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