as follows:- 1. The assets are valued at cost or book value or at the cost derived amounts 2. Items which have no cost are ignored‚ that is‚ if the business entity does not pay anything for an asset‚ it would appear in the books of account. The goodwill would appear in the accounts only when the enterprise has purchased the intangible asset for a price. 3. Unrealized gains‚ i.e.‚ gains on unsold assets are to be ignored 4. The real value of the capital employed is not available in the Balance
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Corporate Accounting III Assignment 2 Question 1: What is the difference between direct and indirect NCI? Under AASB127‚ the group is required to prepare the consolidation statement when parent entity acquires shares in the subsidiary. There are two parties who own shares in the subsidiary if it’s not a wholly-owned subsidiary consolidation. One is the parent entity while the other is non-controlling interest. Non-controlling interest (NCI) is defined as “the portion of the profit or loss and
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ACC 422 Week 4 WileyPLUS Assignment To purchase this material click http://www.assignmentcloud.com/ACC-422/ACC-422-Week-4-WileyPLUS-Assignment For more classes visit www.assignmentcloud.com ACC 422 Week 4 WileyPLUS Assignment Exercise 11-4 Wenner Furnace Corp. purchased machinery for $650‚070 on May 1‚ 2012. It is estimated that it will have a useful life of 10 years‚ salvage value of $34‚950‚ production of 559‚200 units‚ and working hours of 25‚000. During 2013‚ Wenner Corp. uses the machinery
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[pic] ACCT 1110 – Accounting for Corporations tudent Name: Hui Daniel s3109770 Li Allen s3222285 Liu Nicole s3218667 Tutor Name: Dr. Mahesh Joshi Lecture Time: Tuesday 9:30 Assignment Due: Monday 7th of September 2009 Executive Summary The purpose of this document is to record the analysis of AGL Energy Limited’s the external environment‚ internal business activities
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motor vehicles‚ office equipment‚ computers‚ and plant and machinery. Intangible Assets is a much broader category including anything from copyrights and patents to trade secrets‚ customer lists/leads‚ noncompetition agreements‚ franchises‚ and goodwill. The accounting methods for PP&E is very similar to those of Current Assets‚ though there are significant differences in the costs to be capitalized according to GAAP (the "generally accepted accounting princiapals" as determined by the Financial
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ADVANCED FINANCIAL ACCOUNTING 260 INTANGIBLE ASSETS QUIZ QUESTIONS 1. List two assets which would not meet the ‘identifiable’ aspect of the definition of an intangible asset. (2 Marks) Goodwill Customer loyalty 2. Intangible assets acquired via a separate acquisition are always recognised. Why? (2 Marks) The price an entity pays to acquire an intangible asset will reflect expectations about future economic benefits of the will flow to the company. This meets the probability test to identify
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Summary of Reacquired Franchise Rights It has come to our attention that much of Roman Holiday’s recent revenue growth came from acquisition of franchise right and existing restaurants rather than real growth in the franchise. Management is aware of these issues and may be feeling some pressure to meet growth targets and earnings forecasts. In the following working papers‚ we address this potential issue by reviewing the various accounting treatments for the reacquired franchise rights. We also
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with experience‚ so if anything‚ there should be an increase in roster values over time. So from the perspective of economic reality‚ this is valuable asset like intangible assets. This asset is similar to the good will. Under previous US GAAP‚ the goodwill should be depreciated but in new US GAAP‚ it has been changed not to be depreciated. So it should be evaluated at every end of year without depreciation. This change is a trial to conform Economic reality to US GAAP. Salary related cost
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in consolidated income 34‚737 Percentage interest 0.10 Noncontrolling interest in consolidated income $ 3‚474 Exercise 6-4 The $600‚000 that could not be assigned to specific assets and liabilities is assumed to represent goodwill (the unidentifiable intangible asset)‚ which is not amortized under current GAAP but is reviewed periodically for impairment. In contrast‚ identifiable intangible assets would be amortized if they have a definite life but not if the life is indefinite
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assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Asset groups may include assets and liabilities outside the scope of ASC 360-10 (for example‚ goodwill — if certain conditions‚ discussed later‚ are met — and other non-amortizing intangible assets). In general‚ assets should be grouped when they are used together‚ that is‚ when they are part of the same group of assets and are used together to generate
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