Question

using FASB CODIFICATION

For each question, cite the
section number, and cut and paste the rule into your answer. What section of the
codification requires:

3. Companies must amortize intangible assets with a definite life over their useful lives?

6. A pro forma disclosure is required by an acquirer of revenues and income as if the
acquisition had occurred as of the first day of the prior year.

Answer 1

Topic 350: An entity would amortize goodwill on a straight line basis over 10 years, or less than 10 years if the entity demonstrates that another useful life is more appropriate

Make a policy election to test goodwill for impairment at either the entity level or the reporting unit level

Test goodwill for impairment when a triggering event occurs that indicated that the fair value of an entity may be below its carrying amount.

Topic 805: The acquirer shall disclose the following information for each business combination that occurs during the reporting period:

a. The name and a description of the acquiree

b. The acquisition date

c. The percentage of voting equity interests acquired

d. The primary reasons for the business combination and a description of how the acquirer obtained control of the acquiree

e. For transactions that are recognized separately from the acquisition of assets and assumptions of liabilities in the business combination, all of the following:

1. A description of each transaction

2. How the acquirer accounted for each transaction

3. The amounts recognized for each transaction and the line item in the financial statements in which each amount is recognized

4. If the transaction is the effective settlement of a pre existing relationship, the method used to determine the settlement amount.