FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
9th Edition
ISBN: 9781119595724
Author: Kimmel
Publisher: WILEY C
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 9.6EYCT
(a)
To determine
To explain: the common feature in the title that all the companies have and its implications.
(b)
To determine
To explain: the significance of the common feature has for a company’s goodwill.
(c)
To determine
To explain: the recording of the goodwill by a company on its books.
(d)
To determine
To explain: the effect of written down of goodwill on cash.
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
3. Indicate how items on the list below would generally be reported in the financial statements.
Classification
[6]
[7]
[8]
[9]
[10]
[11]
Item
Cost of searching for applications of
new research findings.
Goodwill acquired in the purchase of
a business.
Cost of purchasing a patent from an
inventor.
Legal costs incurred in securing a
patent.
Cost of conceptual formulation of
possible product alternatives.
Cost of purchasing a trademark.
Which one of the following statements is false?
Group of answer choices
A capital asset may be an asset connected or not connected to trade or business of the taxpayer.
An asset held in business as investment is ordinary asset.
Inventory is ordinary asset.
An asset used in business which is subject to depreciation is an ordinary asset.
Need typed answer only.Please give answer within 45 minutes
Section 228 of the Companies Act 2016 (s.228 CA2016) is intended to prevent assetstripping by way of disposal of a company’s assets at an undervalue, or acquisition ofassets by the company at an overvalue. The type of transactions under the BursaMalaysia Listing Requirement (BMLR) are also wider in scope than s.228, CA2016.TYT Berhad (TYT), a listed issuer, intends to acquire from specified persons a noncash asset of a requisite value. As the company secretary of TYT:(a) Explain who are the specified persons. Elaborate in detail on the composition ofsuch persons to which CA2016 and BMLR apply.(b) Discuss types of transactions that are considered “exempted transactions” asprovided in CA2016.
Chapter 9 Solutions
FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - Prob. 4QCh. 9 - Prob. 5QCh. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - Prob. 9QCh. 9 - In the fourth year of an assets 5-year useful...
Ch. 9 - Prob. 11QCh. 9 - Prob. 12QCh. 9 - Prob. 13QCh. 9 - Prob. 14QCh. 9 - Prob. 15QCh. 9 - Prob. 16QCh. 9 - Prob. 17QCh. 9 - Prob. 18QCh. 9 - Prob. 19QCh. 9 - Prob. 20QCh. 9 - Prob. 22QCh. 9 - Give an example of an industry that would be...Ch. 9 - Prob. 24QCh. 9 - Prob. 25QCh. 9 - Prob. 26QCh. 9 - Prob. 27QCh. 9 - Prob. 9.1BECh. 9 - Prob. 9.2BECh. 9 - Prob. 9.3BECh. 9 - Prob. 9.4BECh. 9 - Prob. 9.5BECh. 9 - Prob. 9.7BECh. 9 - Prob. 9.13BECh. 9 - Prob. 9.14BECh. 9 - Prob. 9.1DIECh. 9 - Prob. 9.2bDIECh. 9 - Prob. 9.3DIECh. 9 - Match the statement with the term most directly...Ch. 9 - Prob. 9.2ECh. 9 - Prob. 9.4ECh. 9 - Prob. 9.9ECh. 9 - Prob. 9.12ECh. 9 - Prob. 9.13ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Prob. 9.19ECh. 9 - Prob. 9.20ECh. 9 - Prob. 9.21ECh. 9 - Prob. 9.23ECh. 9 - Prob. 9.24ECh. 9 - Prob. 9.1APCh. 9 - Prob. 9.7APCh. 9 - Prob. 9.2EYCTCh. 9 - Prob. 9.3EYCTCh. 9 - Prob. 9.6EYCTCh. 9 - Prob. 9.7EYCTCh. 9 - Prob. 9.8EYCTCh. 9 - Prob. 9.10EYCTCh. 9 - CONSIDERING PEOPLE, PLANET, AND PROFIT The March...Ch. 9 - Prob. 9.1IECh. 9 - Prob. 9.2IECh. 9 - Prob. 9.3IECh. 9 - Prob. 9.4IE
Knowledge Booster
Similar questions
- Which of the following statements is false? Under IFRS, expenses include losses that are not the result of ordinary activities. Under IFRS, it is mandatory to report property, plant, and equipment at historical cost. The number of financial statement elements in the IFRS conceptual framework are not equal to those in GAAP. The existing conceptual frameworks underlying GAAP and IFRS are very similar. Icon International, a software company, incorporated on January 1, 2019 is planning to convert to IFRS. The company decided to present its first IFRS statements for the year ended December 31, 2021. What is the transition date of Icon International? January 1, 2019 January 1, 2021 December 31, 2021 December 31, 2019 Icon International, a software company, incorporated on January 1, 2019 is planning to convert to IFRS. The company decided to present its first IFRS statements for the year ended December 31, 2021. What is the reporting date of Icon…arrow_forwardNegative Goodwill is based on the accounting concept of Goodwill, an intangible asset that represents the worth of a company's brand name, patents and other intellectual19property, customer base, licenses, and other items that are difficult to put an amount on but help to make a company valuable. When the price paid is less than the actual value of the company's net tangible assets, negative Goodwill results.Required: In accordance with IFRS 3: Business Combinations, Identify THREE (3) factors that account for a negative Goodwill and indicate its accounting treatment when it occurs in the preparation of consolidated financial statements.arrow_forward_____ Which of the following statements is (are) true regarding the current (2020) US GAAP accounting treatment for intangible assets? Any patent that is reported on the balance sheet should be amortized over a period no longer than the patent’s remaining legal life. A firm may report the value of an internally generated brand on the firm’s balance sheet as long as the firm obtains an “independent appraisal” of the brand value from a brand consulting firm. BOTH statements A and B are true. None of the above statements are true.arrow_forward
- How does the continuity of ownership test operate with respect to company losses? What happens if a company fails the test? Explain your answer in detail with reference to the relevant provisions of the ITAA97, together with any relevant case law and ATO issued guidance.arrow_forwardWhich of the following is not an example of an item that would be a contingent asset? a A possible receipt of damages that is associated with a legal claim made against another entity. b A claim by a company against the State government about some land expropriated in 1997 for which the directors are of the opinion based on previous negotiations with the government that there is a strong indication of the claim being probable in the next period. c A company has started negotiations with a potential new customer and the directors are of the opinion that it is probable that there will be a sale in future periods from these negotiations. d None of the other options; all are contingent assets. 1arrow_forwardBelow are elements in the financial statements on which the director of ABC Building Limited require advice: • In 2016, ABC Building Limited acquired several properties as investment properties. Since ABC has not adopted accounting policy in accounting for property as investment properties before, the financial director considered such adoption is change in accounting policy. ABC Building Limited has no investment property before 2016. • In 2018, ABC Building Limited proposed to change to the cost model instead of fair value model in accounting for its investment property in accordance with PSAK 13. Its financial director considered whether ABC could make such changes and, if change could be made, how ABC should account for the changes • In 2020, ABC Building limited decided to make a change in estimate as to the duration of depreciation of its building, increasing it from 20 to 30 years. Please discuss how the above items should be dealt with in the financial statements of ABC…arrow_forward
- Which of the following is/are not capitalized as an intangible asset? Select one: a. Legal costs to defend a patent successfully and goodwill acquired when a company purchases another company. b. Costs of an internally developed patent and goodwill acquired when a company purchases another company. c. Costs of an internally developed patent and legal costs to defend a patent successfully. d. Goodwill acquired when a company purchases another company and costs to purchase a patent. e. Costs to purchase a patent and legal costs to defend a patent successfully.arrow_forwardWhat is the correct order in which the limitations on potential losses must be applied for 2022? First, basis; second, at - risk; third, passive activity; fourth, excess business loss. First, at - risk; second, basis; third, excess business loss; fourth, passive activity. First, passive activity; second, excess business loss; third, basis; fourth, at-risk. First, basis; second, passive activity; third, excess business loss; fourth, at - risk. Mark for follow up Question 12 of 30. Which item on a Schedule K -1 (Form 1065) would subject the partner to self-employment tax? Interest. Royalties not derived in the ordinary course of a trade or business. Ordinary income, but only if the partner was a limited partner. Guaranteed payments for services rendered by a partner to a partnership. Mark for follow up Question 13 of 30. Hale receives a Schedule K-1 from a family business that he does not actively participate in. On it, he shows interest income of $245 and dividends of $681. The Schedule…arrow_forwardBellow are elements in the financial statements on which the director of ABC Building Limited require advice: • In 2016, ABC Building Limited acquired several properties as investment properties. Since ABC has not adopted accounting policy in accounting for property as investment properties before, the financial director considered such adoption is change in accounting policy. ABC Building Limited has no investment property before 2016. • In 2018, ABC Building Limited proposed to change to the cost model instead of fair value model in accounting for its investment property in accordance with PSAK 13. Its financial director considered whether ABC could make such changes and, if change could be made, how ABC should account for the changes • In 2020, ABC Building limited decided to make a change in estimate as to the duration of depreciation of its building, increasing it from 20 to 30 years. Please Discuss how the above items should be dealt with in the financial statements of ABC…arrow_forward
- The following expenditures shall be expensed when incurred, except O Payment in advance of delivery of goods or the rendering of services. O Start up costs O Advertising and promotion costs O Business relocation or reorganization costs Which of the following items would qualify as an intangible asset? * College tuition fees paid to employees who decide to enroll in an executive MBA program while working with the company. O Legal costs paid to intellectual property lawyers to register a patent. O Advertising and promotion on the launch of a huge product. Operating losses during the initial stages of the project. Which is not considered a research and development activity? O Design, construction and operation of a pilot plant. O Laboratory research aimed at discovery of new knowledge. O Conceptual formulation and design of possible product or process. O Routine on-going effort to refine, enrich or improve quality of existing product. Which statement is correct concerning the amortization…arrow_forward“In the accounting literature, there is substantial scepticism towards the adoption of the impairment-only approach to goodwill and other assets with an indefinite useful life (e.g. Li & Sloan, 2017; Ramanna & Watts, 2012; Watts, 2003; Zhang & Zhang, 2017). The main argument for such scepticism is that managers will let their professional judgments at the acquisition date be affected by personal motives; and as a consequence, they may compromise future economic impairments.” Peter Frii & Mattias Hamberg (2021) What motives shape the initial accounting for goodwill under IFRS 3 in a setting dominated by controlling owners?, Accounting in Europe, 18:2, 218-248, DOI: 10.1080/17449480.2021.1912369 Required Critically appraise the treatment of goodwill and impairment within the current IFRS3 Business Combinations and conclude how issues with this standard have led to poor quality accounting information as a consequence of the Covid-19 pandemic.arrow_forwardWhich of the following statements is true about goodwill? Goodwill may be recorded when the fair value of a company's assets exceeds their а. cost. b. Goodwill may be recorded when one company acquires another in a business combination. С. Goodwill may be recorded when a company has exceptional customer relations. d. Goodwill may be recorded when it is identified within a company.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
- Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage LearningBusiness Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
![Text book image](https://www.bartleby.com/isbn_cover_images/9781285190907/9781285190907_smallCoverImage.gif)
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage