Nupath Foods

Cisco allocates the fair value of the purchase consideration of its acquisitions to the tangible assets, liabilities, and intangible assets acquired. The excess fair value of the purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill.

a. Trading securities. Investments in debt securities that are classified as trading and equity securities that have readily determinable fair values that are classified as trading shall be measured subsequently at fair value that are classified as trading shall be included in earnings.

Morris Mining Corporation owns and operates mining facilities that are located in the United States, and Canada. This company primarily distributes extracted ores and minerals to their customers. Recently, in January 2015, Morris Mining acquired the mining company King Co. Once the company has been acquired, Mining Morris plans to record the difference of the purchase price and identifiable net assets as goodwill. The identifiable assets and liabilities of King Co. are going to be recorded at fair value on Morris Mining 's books. There has been discussion as to how the company is going to report the fair value for the patent that is part of the assets they acquired from King Co. Rob, an audit manager on the Morris Mining engagement, and Gabriela, the audit senior, are trying to evaluate if the method of the fair value estimate it reasonable.

CLASSIFICATION AND UNDERSTANDABILITY- FINANCIAL INFORMATION IS APPROPRIATELY PRESENTED AND DESCRIBED AND DISCLOSURES ARE CLEARLY EXPRESSED .

In light of these, the author noted the great importance of the proper usage of an asset pricing model and the estimation of the cost of capital. Necessary assessments of cost of capital which are used to evaluate the quality of investment, market efficiency, and financial assets were needed. As such the proper usage of these asset pricing models can help to prevent wrong investment projects and inadequate selling and acquiring of shares; and ensure market and economic smoothness.

Value funds seek stocks that are cheap by fundamental standards while growth funds seek stocks with high current earnings.

Investing Activities: Involve the management of a company’s long-term assets – primarily purchases and sales of fixed assets (esp. land and equipment) and investments in equity securities.

Business acquisition is the purchase of another entity’s assets by another company. There are several reasons why a company may acquire another company such as operational, financial, managerial and sales synergies, diversification of risk, growth and profitability, tax saving and empire building (Saleemi, 2009: 150). The acquisition had a significant impact on the shareholders’ wealth.

Fair Value accounting is a measurement application to value assets and liabilities based on current transactions among buyers and sellers in the market. In other words, the price market participants pay or receive in an orderly transaction at a certain date. There are different techniques for measuring fair values depending on asset and market activity. It includes market approach, cost approach, and income approach. Financial Accounting standards (FAS 157) defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date” (FASB, 2006). Different levels of inputs are also utilized in measuring values of assets and

“ Investment is an asset or item that is purchased with the hope that it will generate income or will appreciate in the future.”

7. Relaxed current asset investment policy: relatively large amounts of cash, marketable securities and inventories are

• Assets are the investments made by the providers of finance (in this case existing shareholders).

What long-term investments should the firm undertake?This area of finance is generally referred to as capital budgeting.

The factors that affect investments are based on the priorities of the stakeholders and decision makers, which are either based on long term growth or short term profit. In most cases firms tend to invest over long term (Adler R.W. 2000). There are many formal methods that are used in Investment appraisal and many of which are criticized as being traditional;

In Finance, Investment can be defined as the purchasing of financial assets and securities from capital market , or buying money market or real properties with high market liquidity. Examples silver, gold, precious items, real