the difference between the price paid for an acquired company and the book value assigned to its tangible assets.
What will happened if Carrying value of goodwill = Implied value of goodwill? Should the 50,000 be the goodwill to be reported at year-end? Goodwill to be reported: | Carrying value of goodwill Implied value of goodwill at year-end Goodwill to be reported at year-end A B 70,000 50,000 90,000 | 50,000 70,000 50,000 C 40,000 75,000 40,000 Total 160,000 215,000 160,000
Question 18 Simon Company determines that its goodwill is impaired. It finds that its implied goodwill is $360,000 and its recorded goodwill is $400,000. The fair value of its identifiable assets is $1,450,000. What is the amount of goodwill impaired? Amount of goodwill impaired $
an asset is claaified as goodwill on the balance sheet when
which of the following best describes the accounting for goodwill acquired in business acquisition? a. Goodwill can be recorded by a company when it can demonstrate that the company has generated excess market value directly attributable to its strong reputation b. Goodwill is recorded as an asset when the purchaser of a business believes that the purchased business has a good reputation among its customers c. Goodwill is recorded as an asset when the purchaser of a business pays less...
Which of the following statements regarding goodwill is false? Select one: a. Goodwill is never amortized for financial reporting purposes. O b. A company must review its goodwill for impairment annually O C. A company records goodwill at the time that it acquires another company or at the time it determines that material intellectual capital exists in its employees. Od. A company must review its goodwill for impairment whenever events or changes in circumstances occur that would more likely than...
What does goodwill represent? Under SFAS 142, we are required to test goodwill for impairment at least annually. How is this done? Is impairment of goodwill reversible under U.S. GAAP? How about under IFRS? (Refer to FASB Topic 350, "Intangibles-Goodwill and Other," and IAS36 "Impairment of Assets.")
Which of the following is not true about goodwill ? Goodwill must be written off over 20 years. Goodwill must be checked for impairment at least annually. The loss of key customers could impair the value of goodwill. Goodwill does not have to be amortized. Goodwill is shown as an asset on the balance sheet. Which of the following are not true of net operating loss carrybacks and carryforwards? Net operating loss carrybacks enable firms to recover previous taxes paid....
Jericho Company recently acquired three business recognizing goodwill in each aquisition. The acquired goodwill was allocates to the three reporting units: Apple, Banana, and Carrot. Jericho provides the following information in performing the 2012 annual review for impairment. Carrying Value. Fair Value reporting unit Apple Tangible Assets 300000. 320000. 525000 Trademarks. 20000. 10000 Licenses. 85000. 90000 Liabilities. 20000. 20000 Goodwill. 130000. ? Banana. Tangible Assets. 250000. 400000. 450000 Trademarks. 25000. 50000 Licenses. 18000. 18000 Goodwill. 140000. ? Carrot. Tangible...
The classification of intangible assets includes goodwill. Current FASB practice states that goodwill cannot be created, added to, or depreciated or amortized. Some companies have increased their value or have a significant portion of their assets tied up in goodwill. How appropriate is it for the FASB to take the position it has?
1. Explaining the accounting treatment for the impairment of Goodwill and Infinite-life Intangibles (other than goodwill).