• Student
    percent in 2005 and 19 percent ’s in 2006, reducing the company’s asset turnover (sales assets) from the reported value of 0.98 to 0.83 in 2005, and from 1.02 to 0.86 in 2006. Key Intangible Assets Off Balance Sheet How should the analyst approach the omission of intangibles? One way is to leave the...
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  • XYZ - Used for useful things
    may be used. [UITF 28] Leasehold contracts are usually three to nine years in France. Lessees are required to capitalise premiums paid on these contracts (droit au bail) as intangible assets if they represent a negotiable right. They should not be amortised but written off where a...
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  • Business Accounting
    (including goodwill to the extent that it has not been written off) after attributing, where possible, fair values to the net assets at the date of acquisition of the interest in each associated undertaking. 2 Particulars of staff 1 Average number employed by the company (or by group in...
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  • Course Notes
    :  Professional costs in setting up the acquisition deal must be written off to the income statement i.e. reserves, and not be regarded as an addition to cost of the investment when calculating goodwill.  Contingent consideration should be recognised immediately – this actually makes exam questions...
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  • Mr. Dennis Kibera
     purchased for £200 million when the fair value of the net assets  were only £160 million. Two years after the acquisition the recoverable  amount of the subsidiary has been identified at £152 million and the net  assets of the subsidiary are £120 million. Determine the outcome of the impairment...
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  • Good One
    have not commenced. 2. Planned principal operations have commenced, but there has been no significant revenue therefrom. CE12-2 See FASB ASC 350-30-35. In the discussions related to “Determining the Useful Life of an Intangible Asset” 35-1 The accounting for a recognized intangible asset...
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  • Accounting for Football
    evidence reported in the paper that only a small minority of clubs capitalised transfer fees. The current IASB regulatory requirements for the valuation of intangible fixed assets in IAS 38 and IAS 36 apply to the financial statements of all listed companies beginning after 1 January, 2005, and will...
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  • Fudged Accounting Theory
    58 13 Food and Drink Industry The next two tables are concerned with the Food and Drink Industry. The median value for leverage was calculated at 18% for all intangible assets and in the following table an arbitrary cut-off point of 26% has been selected to ensure cells of adequate size and Table...
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  • Sonin
    likely approved fewer and shorter pre-payments. The controversy between the Ninth Circuit and Tax Court approach has apparently been partially resolved by the 2004 issuance of new regulations under section 263. To the extent a pre-payment creates an intangible asset with a life extending at all...
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  • International Accounting
    amount (after any impairment has been recognized) of the assets of all the restaurants plus goodwill. Goodwill is considered to be impaired to the extent that the carrying amount of the assets plus goodwill exceeds the restaurant chain’s recoverable amount. 142 Chapter Four Cash-Generating Unit...
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  • Client Understanding Paper
    . Schroeder, Clark and Cathey explain that those with determinable useful lives are written off over the period of benefit. The cost of acquiring goodwill as well as intangible assets with indeterminate useful lives, is not amortized. References Schroeder, Richard G., Clark, Myrtle W., and Cathey, Jack M...
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  • Mergers and Acquisitions
    of the asset by a multiple that has been assessed after scoring the relative strength of the IPR. For example, a multiple is arrived at after assessing a brand in the light of factors such as leadership, stability, market share, internationality, trend of profitability, marketing and advertising...
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  • Accounting Standards 7
    net assets of the investee. The consolidated statement of profit and loss reflects the investor’s share of the results of operations of the investee. Equity is the residual interest in the assets of an enterprise after deducting all its liabilities. An investment in an associate should be...
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  • ACCA f7
    in the income statement. Development expenditure This has suffered impairment as a result of disappointing sales. The asset should be written down to $18 million in the statement of financial position. The impairment loss should be calculated after charging amortisation of $8 million (40,000/5...
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  • Financial Accounting Manual , Abe
    shows up as a creditor for £750. No agreement has been made between A and B about setting off one amount against the other. What should we show in the accounts of A in relation to B? You could argue that we should simply show the net debtor of £250 as a current asset. However, this would not show the...
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  • Paper
    until a late stage of their development (by which time most of the relevant expenditure has been written off) that there really is an asset that will generate income in the future. the first type of problem applies to intangibles such as the value of customer relationships. the second to intangibles...
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  • Elliott 12th Instructor's Manual
    business operations. Under IFRS 5, disclose under discontinued heading. (ii) The fraud is an adjusting event under IAS 10, and, as it has been discovered, the financial statements will not show a true and fair view unless they are adjusted for it. The $30,000 should therefore be written off in the...
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  • Appropriate Application of Ias
    preference of a lower asset value to a higher one, and a higher liability value to a lower one. Much of the criticism of HCA paradigm has been associated with its distortion of financial statements. This is due, among other issues, to changes in level and structure of prices and of interest rates that are...
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  • Acca P2 Study Text
    . (a) (b) The asset's carrying amount should be reduced to its recoverable amount in the statement of financial position. The impairment loss should be recognised immediately in profit or loss (unless the asset has been revalued in which case the loss is treated as a revaluation decrease; see...
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  • Contemporary Financial Accounting
    and outcomes. An appeal is not a merits based review, in other words, the committee will not reconsider a student’s performance to determine whether a different grade should be awarded. Rather, it is a procedural review and will investigate whether proper process has been followed. In...
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