Ch 7 Case 1

Decent Essays

Chris Garza

Ch 7- Case 1

2. In periods subsequent to initial measurement, is goodwill amortized?

(1) Performed a key word search using goodwill, amortized. I scrolled down to section 35 subsequent measurement of topic 350 Intangibles- Goodwill and other.

(2) 350-20-35-1 Goodwill shall not be amortized. Instead, goodwill shall be tested for impairment at a level of reporting referred to as a reporting unit. (Paragraphs 350-20-35-33 through 35-46 provide guidance on determining reporting units.)

(3) I found my conclusion in section 35 subsequent measurements

3. Generally, how are guarantees measured?

(1) I performed a keyword search using Guarantees as my key word. I noticed 460 Guarantees was the topic number. I then located …show more content…

The fair value of neither the asset(s) received nor the asset(s) relinquished is determinable within reasonable limits.
b. The transaction is an exchange of a product or property held for sale in the ordinary course of business for a product or property to be sold in the same line of business to facilitate sales to customers other than the parties to the exchange.
c. The transaction lacks commercial substance (see the following paragraph).

(3) I found my conclusion in section 30 initial measurement , Basic Principle

9. Under topic 835-20 (Capitalization of Interests), what amount of interest may initially be capitalized as part of the initial investment of an asset, for certain qualifying assets? How should a company determine its “capitalization rate” for capitalizing interest?

(1) I performed a Master Glossary search by finding the keyword capitalization and clicked on it which took me to the guidance.


The Amount of Interest Cost to Be Capitalized
835-20-30-2 The amount of interest cost to be capitalized for qualifying assets is intended to be that portion of the interest cost incurred during the assets ' acquisition periods

Get Access