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

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

A:

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: Explain the alternative methods that have been suggested to account for goodwill or excess on…

A: Intangible Assets are the non current fixed assets which can not be seen or touch. But they provide…

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: Where the NCI is measured at fair value at acquisition date, which of the following methods is being…

A: Non controlling interest equity in subsidiary is not directly attributable to the parent.non…

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

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: among the following is not an allowed offsetting? *

A: Concept of offsetting as per IFRS 1 vis a vis IAS 1 Assets , liabilties , incomes and expenses when…

Q: What is the different between conventional and islamic on asset

A: Conventional assets:  Conventional assets are the assets that comprise of stocks, bonds, and cash.…

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: 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: How do the impairment test for indefinite-lived intangible assets and definite-lived intangible…

A: Impairment is the permanent reduction in the value of the asset. Circumstances that indicate…

Q: Based on Appendix 12B) How does IFRS differ from current U.S. GAAP in accounting for…

A: When the asset value reduces due to market or technological factors which it turn fall below its…

Q: Identify the two exceptions to valuing property, plant, and equipment and intangible assets acquired…

A:

Q: For a non-monetary exchange of plant assets, accounting recognition should not be given to a O a.…

A: for a nonmonetary exchange of plant assets accounting recognition should not be given to "Gain when…

Q: When should a consolidated entity recognize a goodwill impairment loss? If both the fair value of a…

A: Definition:   Goodwill: Goodwill is an intangible asset. It is defined as the excess of the cost of…

Q: A company should record an asset called "Goodwill" when it purchases another company for an amount…

A: Goodwill is one of the intangible assets.

Q: According to China accounting standards indicates that goodwill normally is Select one: a.…

A: At the time of acquisitions of one company, the other company is required to pay more amount than…

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

A: Measurement period refers to the reasonable time period after the date of acquisition when acquirer…

Q: Choose the correct.Goodwill recognized in a business combination must be allocated among a firm’s…

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

Q: What is the difference between tangible and intangible assets?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Assets and liabilities, and income and expenses, when material, shall not be offset against each…

A: As per general accounting principal, liabilities & assets and income & expenses should not…

Q: Which statement regarding goodwill is true?

A: Goodwill: Goodwill is the asset to the company which is shown in the asset side of the balance under…

Q: Under IFRS, an intangible asset is considered to be impaired if it carrying value is greater than…

A: According to IFRS 13 and Indian Accounting Standard (IAS) 36, an intangible asset is said to be…

Q: true or false ___________ if the fair value of the asset given u[ in exchange transaction that has…

A: Fair market value: It is the value of the fixed asset on which a particular asset is being sold in…

Q: Which one of the following is not true concerning the treatment of investment properties under IAS…

A: If an investment property is held at fair value, this would not apply to all of the entity's…

Q: Which of the following statements regarding goodwill is false? A company must review its goodwill…

A: Solution: Following statement regarding goodwill are true: 1. A company must review its goodwill for…

Q: Under U.S. GAAP, litigation costs to successfully defend an intangible right are capitalized and…

A: IFRS:  IFRS means international financial reporting standards. It is implemented to report the…

Q: Goodwill recognized in a business combination must be allocated among a firm’s identified reporting…

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

Q: How do SMEs account for impairment losses on CGUs? a. The impairment loss is charged first to…

A: The carrying amount of the asset is the amount of asset that is reported on the balance sheet after…

Q: Which one of the following category goodwill lies? a. Fictitious asset b. Intangible asset c.…

A: Option a. Fictitious asset cannot be converted into cash but goodwill can be encashed. Option b.…

Q: 6.) In reference to the determination of goodwill impairment, which of the following statements is…

A: Goodwill impairment occurs when the recognized goodwill associated with an acquisition is greater…

Q: Choose three out of six differences on page 55, (attached) and, for each of these three differences,…

A: US GAAP is preferred over IFRS due to the following reasons of difference:Shipping and handling…

Q: Goodwill recognized in a business combination must be allocated among a firm’s identified reporting…

A: The fair value of a particular reporting unit with recognized goodwill falls below its carrying…

Q: Transfers of investments between categories   a. Should always affect net income b. Are accounted…

A: Transfer of an Investment:- It is a procedure where one company or entity sells its investment to…

Q: A transfer from investment property carried at fair value to owner-occupied property shall be…

A: Investments: Investment is defined as an allocation of money with the prospect of some future…

Q: Assets and liabilities, and income and expenses, when material, shall not be offset against each…

A: Foreign exchange gains and losses are permissible to be offset against each other. An entity may…

Q: Under PFRS 15, when shall a consignor recognize revenue from its consignment sales? A When the…

A: SOLUTION- PERFORMANCE OBLIGATION  IS A PROMISE TO DELIVER THE GOODS OR SERVICES IN LIEU OF PAYMENT…

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: The following rules represent correct guidelines in the transfer to and from investment property…

A: The investment property is held for earning rental income and capital appreciation from the property…