During the measurement period, which of the following may affect the amount of goodwill from business combination?
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During the measurement period, which of the following may affect the amount of
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- During the measurement period, which of the following may affect the amount ofgoodwill from business combination? A.New information regarding estimates in the contingent consideration that are not existing atthe date of acquisitionB.Nothing can affect the amount of goodwill.C.New information regarding estimates in the contingent consideration that are existing at thedate of acquisition.D.New information regarding estimates in the contingent consideration10. During the measurement period, which of the following may affect the amount of goodwill from business combination? Group of answer choices New information regarding estimates in the contingent consideration that are existing at the date of acquisition. New information regarding estimates in the contingent consideration that are not existing at the date of acquisition Nothing can affect the amount of goodwill. New information regarding estimates in the contingent considerationWhich of the following is/are true regarding goodwill achieved through acquisition as part of business combination? Where the acquirer was able to purchase the business at a discount, the excess of the market capitalization over the consideration transferred will be recognized in profit or loss. The acquirer shall recognize goodwill as of the acquisition date measured as the excess of the aggregate of the consideration transferred over the net of the fair values of all the assets acquired and the liabilities assumed Group of answer choices Both statements are true. None of these statements are true. 2 only. 1 only.
- Which statement regarding goodwill is true? a. goodwill is an unidentifiable intangible assetb. internally developed goodwill should be capitalized while purchased goodwill should beexpensedc. goodwill can be defined as the value attached to the ability of a company to earn a higherthan normal rate of return on the book value of its identifiable assetsd. in some situations, FASB Statement No. 141 requires that negative goodwill be recordedif the value implied by the purchase price of an acquired company exceeds the fair values of the identifiable net assets, the excess should be a. allocated to reduce any previously recorded goodwill and classify any remainder as an ordinary gain b. allocated to reduce current and longlived assets c. allocated to gain on acquisition d. allocated to goodwillIndicate whether each of the following statements is true or false. Goodwill can only arise from a third-party purchase of another company’s net assets. Under IFRS, indefinite-life intangibles are treated the same way as definite-life intangibles regarding impairment evaluation but not measurement. Under IFRS, goodwill impairment reversals are not allowed unless the goodwill is internally developed.
- Which of the following statements regarding IFRS accounting for goodwill is/are incorrect: (i) Negative goodwill is reported as a liability (ii) A goodwill impairment expense decreases the carrying amount of goodwill on the consolidated SoFP (iii) The calculation of goodwill at acquisition date must include the fair value of non-controlling interests in the acquireeThe existence of overvalued assets (when comparing book and market value) on the books of the entity acquired in an acquisition method business combination: Decrease the excess of cost over book value applicable to unrecorded goodwill. Has the same effect as overvalued liabilities on the excess of cost over book value applicable to unrecorded goodwill Means that there will never be goodwill recorded in the business combination. Increase the excess of cost over book value applicable to unrecorded goodwill.Explain the alternative methods that have been suggested to account for goodwill or excess on acquisition? Give three reasons why immediate expensing of intangibles may be justified. Do you agree with these reasons? Explain.
- IXORA Company engaged your services to compute the goodwill in the purchase of another company which provided the following How much is the goodwill ?In a business combination, goodwill is defined as the excess of acquisition cost over the a. fair value of assets acquired. b. fair value of assets acquired less the liabilities assumed. c. net book value of assets acquired. d. book value of assets acquired less the liabilities assumed.What is the goodwill recognized on the acquisition date balance sheet?