Applied Management

vi) Goodwill- The beginning balance for Goodwill was determined by finding the difference between Total Assets and Total Liabilities at the beginning . Goodwill accounts for all the intangible assets that were transferred from the old company to the new company, including brand name, as well as a premium paid for the company. Goodwill was not amortized in this model.

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ASC 320-10-35-34: “The fair value of the investment would then become the new amortized cost basis of the investment and shall not be adjusted for subsequent recoveries in fair value.”

 The characteristics that excludes long-term assets subject to depreciation accounting, or goods which, when put into use. Even if a depreciable asset is retired from regular use and held for sale it does not mean that the item should be classified as inventory.

* There is an adverse change in legal factors or in the business climate that could affect value of the asset

1. Discuss the market system and the need for ethics in business and distinguish it from the law and concepts of virtue and morality.

Before abandonment the asset should be depreciated so at the time of disposal the carrying value equals the salvage value, but not less than zero. Assets that are distributed to owners or exchanged for a similar productive asset must recognize an impairment loss if the carrying amount exceeds fair value at the time of disposal. Assets that are going to be disposed of by sale must be classified as such and the gain or loss it recognizes must be disclosed on the income statement or in the notes. For assets disposed of by sale, the amount of cash received is compared the asset's book value, which is calculated by subtracting accumulated depreciation from the cost of the asset. A gain is recorded if the proceeds of the sale are greater than book value. A loss is recorded if the proceeds of the sale are less than the book value (FASB, 2014).

Intangible assets are one of the most significant items in Myers financial statement. It consists of goodwill, brand names and trademarks, software and leases. AASB 136 Impairment of Assets requires Goodwill and some of the brand names that are indefinite useful life to test for the impairment. In Myer, there is no impairment loss. Furthermore, the accumulated amortisations of the other intangible assets are shown in the table X have a total value of $73585 thousand. According to AASB 117 Leases, the total rentals leases over the leases term are being expensed on a straight-line basis. In contrast, Myer’s competitor David Jones has only two intangible assets goodwill and software. The accumulated amortisation for software is $28808 thousand which is shown in the table X and it is the total value of accumulated amortisation.

Code section 197 generally allows taxpayers to deduct the amortization with respect to amortizable intangibles which are stipulated in the section. The amount of the deduction is determined by amortizing the adjusted basis of the intangible over the 15-year period beginning with the month in which the intangible was acquired. Taxpayers may amortize these costs if they hold intangibles in connection with their trade or business or in an activity engaged in for the production of income. For example, Assume on January 1, 2004, Sara purchased all the assets of a business, and recognized two amortizable section 197 intangibles: $30,000 goodwill; $45,000 going concern

The current assets are those which are readily convertible into cash and cash equivalents due to their highly liquid nature and also form part of working capital of the company’s operations. However, the long term assets in contrast are not liquid because since they have a useful life of more than a year and hence their full value cannot be easily realized within

Basically, contingency theory asserts that when managers make a decision, they must take into account all aspects of the current situation and act on those aspects that are key to the situation at hand. Basically, it’s the approach that “it depends.” For example, the continuing effort to identify the best leadership or management style might now conclude that the best style depends on the situation. If one is leading troops in the Persian Gulf, an autocratic style is probably best (of course, many might argue here, too). If one is leading a hospital or university, a more participative and facilitative leadership style is probably best.

If an intangible asset is not able to meet either of these criteria, it should be recognized as an expense rather than being capitalized to the statement of profit or loss when it incurs. IAS 38 therefore specifically prohibits recognizing internally generated goodwill, customer lists, publishing titles, brands, start-up costs, mastheads and training costs etc.

Identifiable intangible assets with finite lives are carried at cost less accumulated amortization and adjusted for

“Management is a set of activities directed at an organisation’s resources, with the aim of achieving organisational goals efficiently and effectively.”(Davidson, Simon, Gottschalk, Hunt, Wood & Griffin (2006) p.5). Management has been practiced for thousands of years by many different civilisations. As a result there are many different approaches to management, two of which are, the behavioural and contemporary management perspectives. The behavioural perspective recognises the importance of behavioural process in the workplace and emphasises individual attitudes and behaviours, and group processes. The Hawthorne studies are famously associated with this perspective and along with studies on technology and social systems

Peter Spurgeon and Robert Cragg (2007) contend the current attention paid to the importance of leadership has diminished the value and contribution of management. The discussion concerning leadership and management, at the most extreme, is inclined to portray leadership as 'good' and management as 'bad'. These constraints are rooted in the proposition that people do not want to be managed, with its connotations of bureaucracy and control, but are happy to follow a leader toward a vision. At the core of this perception is the belief that leaders are concerned with the future and with the people in the system, while managers are focused upon greater efficiency and immediate results.