McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2009 Hoyle, Schaefer, Doupnik, Advanced Accounting, 9/e 3-1 CHAPTER 3 CONSOLIDATIONS—SUBSEQUENT TO THE DATE OF ACQUISITION 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
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CHAPTER 3 CONSOLIDATIONS—SUBSEQUENT TO THE DATE OF ACQUISITION 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 closely
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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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Chapter 5 Consolidation Subsequent to Acquisition Date A brief description of the major points covered in each case and problem. CASES Case 5-1 In this case, students must discuss how to value employees and patentable products and how these assets should be amortized or checked for impairment on an annual basis. Case 5-2 (prepared by Peter Secord, Saint Mary’s University) In this real life business combination, students are directed to identify
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CLASSIFICATION TALK Background When a lawyer named Paul Harris, a coal dealer, a mining engineer and a merchant tailor first met in 1905 in Chicago, they gave birth to Rotary and by the nature of their diverse occupations, to the association’s most distinctive feature – the classification principle. Today, the classification principle, though modified, remains a cornerstone of Rotary. Upon joining Rotary, you are lent a classification by the Board of Directors to reflect your occupation or primary
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…………………………………………………………………….15 5. CHAPTER 4 --- What is the Business Goodwill…………………….……………………………….15 5.1. What Creates Business Goodwill……………………………….……………………….……15 5.2. Types of Business Goodwill……………………………………………….……………….……16 5.3. Accounting View of Business Goodwill…………………………………………….….….16 5.4. Economic View of Business Goodwill……………………………………………….….….16 5.5. How Business Goodwill is Determined…………………..……………………….….17-18 5.6. How Do You Calculate Goodwill in Accounting?............................18-19-20
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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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$27.8 million of returns to the government in the current year, where dividend payouts of 2010-11 of $11.9 million dollars had a major impact. In a nutshell the company shows sign of positive trends in future years to come. Nature of Companies Activity: Aurora Energy is of the major player of generating, distributing and retailing electricity in Tasmania and is wholly owned by the Tasmanian government. It provides employment to over 1000 people is various fields of its
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General Mills Inc.—Understanding Financial Statements Teaching Notes: This is the first case we use in our course and it sets the tone. We find that using a company well-known to students piques their interest and gets the course off to a good start. The purpose of the case is to gain familiarity with financial statements and to begin to think about how financial statements reflect economic events and financial performance. Some students need to be reminded that the point of the exercise is not
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Business Information Management Academy of Finance BIM Exam Review February 2012 Exam Structure Total 2 hours 15 minutes Total 3 questions to answer 2 questions of a “calculative” nature 1 question of a “theoretical” nature, where you will have to explain something in words Closed-book (no textbooks, notes, computers, or cell phones allowed) You will need a non-programmable calculator Academy of Finance MBA Program - Business Information Management 2 Study material Lecture
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