Answered: What basic principle do U.S. GAAP and…

Business

Accounting

What basic principle do U.S. GAAP and IFRS rely upon in recording the initial acquisition value for nearly all assets?

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 2BIC

See similar textbooks

Related questions

Q: Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the…

Q: Access the Codification glossary (“Master Glossary”) to answer the following. a. What is the…

A: a.

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: In accounting for the acquisition of assets, the assets acquired are to be recorded at the ‘cost of…

Q: When fair value is used in measuring assets in the financial statements, current GAAP provides…

A: (1) Full form of GAAP - Generally Accepted Accounting Principles. (2) It is a collection of the…

Q: Under IFRS, an entity that acquires an intangible asset may use the revaluation model for subsequent…

A: As per IFRS on Intangible Assets, an intangible asset can be revalued only when there is an active…

Q: How is property, plant, and equipment measured on the balance sheet under IFRS? How does this differ…

A: Generally Accepted Accounting Principles: The principles which are followed by the management to…

Q: Explain how the accounting treatment differs between purchased and internally developed intangible…

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

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: In accounting for the acquisition of assets, the assets acquired are to be recorded at the…

A: Fixed assets of the business are very important assets which includes Land, Plant & Machinery,…

Q: What is included in the original cost of property, plant, and equipment and intangible assets…

A: Original Cost of Property, Plant and equipment and intangible assets acquired in exchange…

Q: why does fair value seeking for an acquisition?

A: Reasonable worth is a term with a few implications in the monetary world. In contributing, it…

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: Under U.S. GAAP, what alternatives do companies have to value their property, plant,and equipment?

A: According to US GAAP, the Property,plant & equipment are to be recognized and measured only…

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: An entity that acquires an intangible asset may use the revaluation model for subsequent measurement…

A: Lets start with basic understanding. Intangible asset is considered under IAS 38 " Intangible…

Q: An entity that acquires an intangible asset may use the revaluation model for subsequent measurement…

A: Intangible assets are those which does not have physical substance. It includes copyright, goodwill,…

Q: Explain about the existence of an active market in relation to the intangible assets and the…

A: Here discuss about the details of intangible assets and its valuation and accounting treatment which…

Q: ntangible assets can only be measured using the revaluation model if the acquiring entity:

A: The Answer:

Q: Under IFRS, a company that acquires an intangible asset may use the revaluation model for subsequent…

A: IFRS Policy International Financial Reporting Standards (IFRS) refers to the common set of rules and…

Q: Which of the following statements is correct?(a) Both IFRS and GAAP permit revaluation of property,…

A: Answer: Option d.

Q: Which of the following term relates to Copyrights, Patents and Trademarks? O a. Investments O b.…

A: Intangible assets are those assets which do not have any physical existence and it's very difficult…

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to the acquisition of…

A: Property, Plant, and Equipment: Property, plant, and equipment are those assets which are…

Q: goodwill at the acquisition date

A: The acquisition related costs should be written off as expenses in the books of the acquirer. They…

Q: a. Over what period of time should the cost of a patent acquired by purchase be amortized?b. In…

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

Q: Formula of goodwill in acquisition date

A: Goodwill is the intangible asset of the organisation and it arises with the purchase of company by…

Q: Under IFRS, when a company chooses the revaluation model as its accounting policy for measuring…

A: As per International Financial Reporting Standards (IFRS), the company values the property, plant…

Q: I. IAS 16 Property, plant and equipment requires entities to disclose the purchase date of each…

A: IAS 16 Property, plant, and equipment details the accounting treatment of most types of property,…

Q: Conduct an acquisition analysis for Bermuda Purchase Consideration [ Choose ] Net Identifiable…

A: On November 1, 2020 Bermuda Ltd. acquired all the assets and liabilities of Triangle Ltd. We are…

Q: One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant &…

A: IAS 16 or Indian Accounting Standard 16 is an International financial reporting standard adopted by…

Q: How do you identify intangible assets such as usufruct in modern transactions

A: Goodwill, brand awareness, and proprietary information like as patents, trademarks, and copyrights…

Q: Identify any differences between U.S. GAAP and International Financial Reporting Standards in the…

A: Property, Plant, and Equipment:Property, plant, and equipment are those assets which are tangible…

Q: Previously held interest at the date of acquisition shall be measured at: O Acquisition cost O…

A: As per IFRS 3: Business combination previously held interest at the date of acquisition shall be…

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: Which statement below regarding the accounting for intangible assets is correct O Patents are…

A: Analysis of opinions 1. Patents are amortized over the shorter of useful life or legal life…

Q: Describe how IFRS and U.S. GAAP treat increases in the value of plant assets subsequent to their…

A: Increases in the value of plant assets subsequent to their acquisitions(but before their…

Q: cost of the new asset acquired

A: Cost of acquisition of new asset = Carrying amount of exchanged asset + Cash difference paid

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

A: The answer

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…

Q: What is the NPV, IRR, and Payback period for the acquisition and what should Atlantic do?

A: NPV and IRR year Free cash flow PV factor PV 0 -260 1 -260 1 12.8 0.884956 11.32743 2…

Q: What is the basic principle for valuing property, plant, and equipment and intangible assets…

Question

What basic principle do U.S. GAAP and IFRS rely upon in recording the initial acquisition value for
nearly all assets?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Definition

VIEW

Step 2: Explanation

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Describe how IFRS and U.S. GAAP treat increases in the value of plant assets subsequent to their acquisition (but before their disposition).
Explain the ‘qualifying asset’ and how do we treat exchange rate differences relating to the acquisition of qualifying assets? Compare and contrast this with the treatment for assets that are not qualifying assets?Give your answer as per AASB 123
Discuss the primary differences between U.S. GAAP and IFRS with respect to the acquisition of property, plant, and equipment and intangible assets.
What is the goodwill recognized on the acquisition date balance sheet?
In your own words, briefly explain a 'qualifying asset' and how we report exchange rate differences relating to the acquisition of qualifying assets? Contrast this with the treatment for assets that are not qualifying assets
1. How much is the fair value of the net assets of Sub? 2. How much is the goodwill/(gain from bargain purchase) at the date of acquisition? 3. How much is the total assets at the date of acquisition?
Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration given to acquire them at the time of acquisition most closely describes which measurement of fi nancial statement elements? B . Historical cost.
Please explain and analyze the effect of major differences between IFRS and U.S. GAAP related to the financial reporting of a specific category of account (e.g. intangibles, biological assets, goodwill, non-controlling assets).
how is the acquisition cost of an asset determined when the asset is acquired in exchange for securities?
Intangible assets can only be measured using the revaluation model if the acquiring entity:
Analyze the impact of differences between IFRS and U.S. GAAP in asset recognition and measurement rules on financial statements. You may focus on Inventories; PPE; Investment Property; Biological Assets; Impairment of Assets; Intangible Assets; Business combination and consolidated financial statements; and Borrowing costs.
An entity that acquires an intangible asset may use the revaluation modelfor subsequent measurement only if