how do you determine when goodwill will be written off under the impairment rules

Q: What is the pupose of performing impairment test for goodwill

A: Goodwill impairment is an accounting charge that companies record when goodwill's carrying value on…

Q: Do U.S. GAAP and IFRS (under IAS No. 39) differ in how they account for otherthan- temporary…

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…

Q: Can a member who contributed an asset demand for its return, transfer or conveyance upon dissolution…

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Q: Assuming the use of full goodwill approach, compute for the goodwill.

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Q: How do you view goodwill on the balance sheet - specifically, if certain levels of it would cause…

A: 1.) I see the goodwill on the balance sheet as synergies , which was estimated at the time of the…

Q: Explain the impairment of goodwill, in general

A: Corporate finance is referred as the decision of the firm to take capital investments and other…

Q: what is accounting for goodwill and what are its implications?

A: Goodwill is an intangible asset. It generally arises from the acquisition of a business. In other…

Q: Under U.S. GAAP, the impairment tests for goodwill and PP&E are different. Describe the main…

A: Property, plant and equipment:   Property, plant and equipment are the tangible assets which are…

Q: Why are the impairment rules for goodwill different than for other assets? Explain

A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…

Q: What type of "event" results in goodwill being recorded on a company's balance sheet? How is…

A: Goodwill is an non-physical asset i.e. intangible. It shows the customer base in loyalty or brand…

Q: Distinguish between internally generated goodwill and purchased goodwill and explain how each of…

A: Solution- Goodwill Meaning in Accounting Goodwill arises when a company acquires another entire…

Q: Intangible assets, such as patents, trademarks, and copyrights, are referred to as tangible assets.…

A: This question explains about intangible assets, such as patents, trademarks, and copyrights, are…

Q: Briefly explain the differences between U.S. GAAP and IFRS in the measurement of an impairment loss…

A: Under International Financial Reporting Standards (IFRS), the impairment loss is recognized, when an…

Q: What Is Goodwill And How Is It Accounted For?

A: Definition:   Goodwill: Goodwill is a good reputation developed by a company over the years. This is…

Q: Describe differences and similarities in the treatment of goodwill impairment between the FASB and…

A: The International Accounting Standards Board (IASB) is responsible for developing and promoting…

Q: During what situations goodwill is essential to be valued?

A: Goodwill is an intangible asset. Value of a brand,  Good relations with customers, solid customer…

Q: Which of the following is not a factor that limits the service life of an asset? a. Operational use…

A: Service life can be limited due to physical causes and functional causes such as deterioration,…

Q: The existing asset does not have sufficient capacity to meet the present demands that are placed on…

A: Fixed asset: It can be defined as an asset that is used by the business in its production activities…

Q: Explain the differences between US GAAP and IFRS in the calculation of a goodwill impairment loss in…

A: Answer: Goodwill is the type of asset that are intangible in nature. It is tested for annual…

Q: Define goodwill impairments.

A: Goodwill impairment is an accounting charge that companies record when goodwill's carrying value on…

Q: What amount of gain should be reported as a result of the modification of terms under ifrs?

A: As per the restructuring of terms, 1. Loan reduced by 20% i.e., P3,000,000 * 20% = P 600,000 2. Loan…

Q: If an asset is written down because of an impairment, in USA GAAP, it cannot be written back up…

A: PROVISIONS FOR REVERSAL OF IMPAIRMENT LOSS UNDER THE FOLLOWING STANDARD :- USA GAAP IFRS…

Q: What is the effect of loss of the thing or object in a contract of sale?

A: What is the Sale of contract: It is the legal contract between seller and buyer to sale the goods at…

Q: Recovery of impairment is recognized under IFRS for all the following except: a. patent held for…

A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…

Q: Which is not an expense? *   costs of goods sold or services rendered loss on disposal of a…

A: Expense is the money spent in operations in order to generate revenues.

Q: Identify the specific factors discussed in the Codification as it relates to Goodwill & Impairment.…

A: Goodwill is an intangible asset; it is the brand value of the business and it is calculated as…

Q: What is goodwill and how is it measured?

A: Intangible Assets: Intangible assets are the long-term assets having no physical existence. However,…

Q: Which of the following can be classified as an intangible asset? Trademark and Goodwill Account…

A: Asset: Asset is something that gives future benefits to the holder. The asset is mainly classified…

Q: Which of the following is classified as monetary? a. Goodwill b. Equipment c. Patent d.…

A: Monetary generally means relating to money or currency. Assets that are classified as monetary…

Q: how the appraiser will adjust the comparable sales for any differencesbetween the subject property…

A: To qualify as a comparable a property must resemble the subject in size, shape, design, utility and…

Q: nder what circumstances is it appropriate to record goodwill in the accounts? How should goodwill,…

A: Goodwill is the amount of the reputation of the company, it is something that cannot be seen or…

Q: Identify and cite the relevant topics, subtopics from the FASB Accounting Standards Codification…

A: FASB: Financial Accounting Standards Board (FASB) is a body that sets the standards or rules…

Q: Which of the following is not a fundamental issue in accounting for property, plant and equipment?…

A: International Accounting Standards IAS are the accounting standards  issued by International…

Q: the underlying business reasons that required Procter & Gamble to record a goodwill impairment

A: Goodwill is an intangible property connected with the acquisition of a company by another. Goodwill…

Q: a Assuming Staton uses the rational entity impairment model record the appropriate entries. b…

A: Given information is: Original Cost = $110,000 Accumulated Depreciation = $20,000 Asset value in use…

Q: What amount of goodwill will be reported?

A: Consolidated balance sheet The financial position of a combination of two companies is represented…

Q: Assuming the use of full-goodwill approach, compute for the goodwill.

A: Particulars  Parent Share (72%)  Minority Share (28%)  Total Value (100%)  Purchase Price…

Q: Which of the following factors, if present, would indicate that a transaction is not a contribution?…

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Q: The first step in determining goodwill impairment involves comparing the * implied value of a…

A: Goodwill is an intangible asset. Mostly, it is recognized by the company when one company purchases…

Q: How does APB #17differ from current requirements under FASB Codification for expensing of goodwill?

A: Goodwill indicates an intangible asset of the company which requires to be reported in the balance…

Q: From an economic point of view, which activity is regarded as an undertaking to prevent a loss in…

A: Activities undertaken by a company can be divided in to two types. They are activities involving…

Q: Explain the process for determining the impairment of goodwill. Include the requirements of IAS 36…

A: The underlying premise of IAS 36 is that an asset should not be carried in the financial statements…

Q: what is the impact if there is. any material misstatement in the goodwill valuation that is on whom…

A: Definition:

Q: Just briefly describe how impairment losses for goodwill are calculated under U.S. GAAP and IFRS,…

A: The answer

Q: During the measurement period, which of the following may affect the amount of goodwill from…

A: IFRS 3 throws light on business combinations and how contingent consideration is treated in the…