Corporate Accounting Aasb3 136 Impairment of Assets Essay

As discussed above, if indicators of impairment exist for an asset (group) to be held and used, an entity determines whether the sum of the estimated undiscounted future cash flows attributable to the asset (group) in question is less than its carrying amount. If those undiscounted cash flows are less than

The authoritative guidance for asset impairment is to ensure that impairment is recorded and dealt with as depreciation. The scope of the standard is writing off of assets and depreciation. According to the guidance of 360-10-35, it address how long-lived assets that are intended to be held and used in an entity’s business shall be reviewed for impairment. The impairment loss can only be recognized if the carrying amount of a long-lived assets is not recoverable and

1. Assess Interco’s financial performance. Why is the company a target of a hostile takeover attempt?

First of all, the first component when acquiring new firm is the identification and valuation of the target. This component requires a well-defined corporate strategy and focus. Identification stage of the target market typically comes before the identification of the target firm, which highly developed markets offer wide choice of publicly traded companies to select from. Valuation stage

* If such asset ceases to be used in the previous year for scientific research related to the business of amalgamated company and is sold by the amalgamated company the sale price to the extent of cost of asset shall be treated

In the literature one finds a large number of explanations for the occurrence of mergers and acquisitions. Sometimes, these explana-tions are also applicable to related forms of interindustrial links such as joint ventures or strategic alliances. Therefore it is necessary to define the term merger and acquisition as it will be used throughout this seminar paper.

In an amalgamation two or more companies are combined into one by merger or by one taking over the other. Therefore the term “amalgamation” contemplates two kinds of activities;

The merger means that two firms take up an agreement to operate jointly with each other, utilizing

Step 1. As of the acquisition date, tangible assets and liabilities need to be measured at their fair market value. However, items such as lease and insurance contracts, among others, need to be measured at their inception date.

The study ‘The Impact of Assets Impairment on Company Accounts’ presents the cotemporary issues facing by major five Australian companies Qantas, Ten Networks, Billabong, Bluescope steel and Harvey Norman. This research mainly deals with controversies surrounding the recent introduction and application of ‘fair value’ measurement system by the IASB and AASB.

Acquisitions are types of business combinations in which two entities or operations of entities are merged into one single entity (www.enotes.com)

The main goal of a business combination is business expansion. The process of two or more companies coming together under a common control in order to expand is known as business combination. There are two methods that a company can expand, which are by internal expansion and external expansion. First, internal expansion is the ability to increase business operations without any outside activities, such as advertising and marketing. Secondly, external expansion is when one company overtakes another company in order to be more successful. External expansion can be achieved through vertical integration, horizontal integration, or through a

An acquisition happens when a purchasing organization acquires over half possession in an objective organization. As a component of the trade, the procuring organization frequently buys the objective organization's stock and different resources, which permits the getting organization to settle on choices in regards to the recently gained resources without the endorsement of the objective organization's investors. Acquisitions can be paid for in real money, in the obtaining organization's stock or a combination of both.

The objective of this part is to analyze the reasons that can lead a firm to M&A operations. Neoclassical economists and strategy experts argue that it improves the competitive position of the firm by exploring the characteristics of the acquired business and its added value, while others are in favor of behavioral theories such as agency theories, hubris, and misvaluation. This part therefore presents the main motivations for merger transactions as well as the improvements that an M&A transaction provide.

Our topic is a clear example of concentric merger, because the two companies offer different products (bricks and ceramic sanitary ware) to the same customer, the construction market.