A decline in the value of the reporting unit does NOT necessarily signal an impairment of goodwill under SFAS No. 142
Q: Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The…
A: It is necessary to do an analysis of the contribution margin per hour for the couches in order to…
Q: Intangible assets such as copyrights and goodwill are not included on the balance sheet because they…
A: Intangible assets are those which have no physical existence. They cannot be touched or held. Yet…
Q: how do you determine when goodwill will be written off under the impairment rules
A: Goodwill:Goodwill is the good reputation developed by a company over years. This is recorded as an…
Q: Roget Factory has budgeted factory overhead for the year at $3,876,600. It plans to produce…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The…
Q: Which one of the following statements regarding IFRS accounting for goodwill is correct: a. If…
A: Goodwill is calculates on business combination by subtracting net assets acquired from purchase…
Q: impairment testing for goodwill?
A: ABOUT GOODWILL :- Goodwill is an Intengible Assets of the Business . Which shows the Reputation of…
Q: The definition of Materiality is: c. accuracy is always the most important consideration regardless…
A: The objective of the question is to identify the correct definition of Materiality in the context of…
Q: Explain the impairment of goodwill, in general
A: Corporate finance is referred as the decision of the firm to take capital investments and other…
Q: Why are the impairment rules for goodwill different than for other assets? Explain
A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…
Q: What type of "event" results in goodwill being recorded on a company's balance sheet? How is…
A: Goodwill is an non-physical asset i.e. intangible. It shows the customer base in loyalty or brand…
Q: quantitative materiality
A: First option is wrong because qualitative materiality is based on the nature of the items contained…
Q: The entry to record goodwill impairment loss must include:
A: Impairment: Impairment is the sudden loss in the value of an asset other than depreciation. In other…
Q: The Accll provisions do not apply to assets acquired from a non-arm's length person. A. True B.…
A: The ACCL provisions, commonly known as the Arm's Length Capital Loss provisions, are designed to…
Q: Which of the following statements is true about goodwill? The intangible asset goodwill may be…
A: Goodwill is an intangible asset which appears in the asset side of entities balance sheet.
Q: Which among the sentences below is incorrect? A. An entity shall measure a current asset or…
A: Fair value A fair value means the actual price of an asset received if it is sold in the market. In…
Q: Which of the following is not considered as a characteristic of a liability?
A: The balance sheet comprises two-part, what the company owns (Assets) and what the company owes…
Q: Statement 2: Assets that are ready for their intended use or sale when acquired are not qualifying…
A:
Q: Under IFRS, the retrospective approach should not be used if: a. retrospective application…
A: International Financial Reporting Standards (IFRS): International Financial Reporting Standards is a…
Q: Which among the sentences below is incorrect? An entity shall measure a current asset or disposal…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Which of the following statements regarding IFRS impairment testing for goodwill is false? Group of…
A: The objective of the question is to identify the false statement among the given options related to…
Q: Which of the following best describes goodwill impairment in accounting? A) Goodwill impairment…
A: At each reporting date, an entity is required to assess whether there is any indication that an…
Q: q23 Which of the following is not a requirement for the recognition of an intangible asset? Select…
A: Intangible asset: An assets which does not have any physical existence or substance and are…
Q: Provide detailed rational of why goodwill must be adjusted for impairment
A: Goodwill impairment is a charge that companies record when goodwill's carrying value on financial…
Q: In a wash sale, a loss is not deductible. Group of answer choices True False
A: The question is related Wash Sale loss. As per Internal Service Revenue (IRS) the wash sale rule is…
Q: Consider the following information regarding the performance of a money manager in a recent month.…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Current Attempt in Progress In reporting discontinued operations, the income statement should show…
A: Income statement shows company's income and expenses over a period of time. Revenues, Expenses, and…
Q: When market value of an asset is higher than book value, depreciation is not charged. A) True B)…
A: Meaning of depression. Depreciation is a reduction in the value of asset due to wear and tear,…
Q: Any adjustment to the carrying amount of a noncurrent asset that ceases to be classified as held for…
A: As per IFRS 5 As per IFRS 5 "Accounting for Non-Current assets held for sale and the presentation…
Q: According to China accounting standards indicates that goodwill normally is Select one: a.…
A: At the time of acquisitions of one company, the other company is required to pay more amount than…
Q: 7. Which of the following must be done when accounting for depreciation under IFRS GAAP but can…
A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…
Q: Which of the following best describes goodwill impairment in accounting? A) Goodwill impairment…
A: Eliminating the incorrect options:A) Goodwill impairment occurs when the fair value of a reporting…
Q: Which of the following statements is true about agency efficiency? a. The costs from vertical…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: The accounting book value of an asset represents the historical cost of the asset rather than its…
A: The Accounting book value of an asset represents the historical cost of the asset less accumulated…
Q: Goodwill is a- (a) Current Asset (b) Fixed Asset (c) Fictitious Asset (d) None of the above
A: Goodwill can be self generated or purchased.It provides future economic profit to the company and…
Q: implied value of a reporting unit to its carrying amount (goodwill excluded). fair value of a…
A: Steps for determining the goodwill impairement includes If unit fair value is less than carrying…
Q: According to PFRS 15, a good or service is distinct if
A: IFRS stands for International financial reporting standards. These are Accounting standards issued…
Q: Under PFRS 5, a noncurrent asset that is to be abandoned should not be classified as held for sale.…
A: The assets are considered to be an important part of business and non current assets create long…
Q: 1. Which statement about negative goodwill is true? Negative goodwill should be recorded as a…
A: Negative goodwill : The goodwill is negative when the fair value of assets exceeds the amount…
Q: True or False Replacement ends depreciation
A: Replacement Cost pays the dollar amount needed to replace damaged personal property or dwelling…
Q: When accounting for asset exchanges, O when an exchange lacks commercial substance, either a gain or…
A: Asset exchange means when an entity exchanges its asset with another entity and it may involve…
Q: What are goods "in transit" and good in "consignment"? Why are they must be considered in light of…
A: The goods in transit are all such goods which has left the dock of seller and not yet reached the…
1. A decline in the value of the reporting unit does NOT necessarily signal an impairment of
A. True B. False
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Solved in 2 steps
- 2-Which one of the following category goodwill lies? a. Intangible asset b. Fictitious asset c. Non-current asset d. Current assetPAS 21 prescribes disclosure of the following, except for Select the correct response: O Accounting policy and method of presentation O Exchange differences recognized in profit or loss and OCI. O The fact and reason for a change in functional currency The fact and the reason for using different presentation currency from entity's functional currency. Statement 1 - A biological asset or agricultural produce is recognized when it meets the asset recognition criteria, including the reliable measurement of its fair value or cost. Statement 2- A biological asset that is previously measured at fair value less cost to sell is continued to be measured at fair value less cost to sell (cost of disposal) until it is disposed of. Select the correct response: Only statement 1 is correct Only statement 2 is correct Both statements are correct Both statements are incorrect Which of the following is not a related party transactions and should not be disclose? Select the correct response: O None of…According to HKFRS 5, what is the measurement rule of Non-current assets held for sale? 1. The lower of carrying amount and value in use. 2. The lower of carrying amount and fair value less cost to sell. 3. None of them. The lower of carrying amount and fair value. 5. The lower of carrying amount and initial cost. 4.
- An inaccurate estimate of asset needs can have serious consequences. Explain how?Which of the following is a correct description of how the returns on assets co-move? A. Positive and negative deviations between assets at dissimilar times give a negative covariance. O B. Positive and negative deviations between assets at similar times give a negative covariance OC. Positive and negative deviations between assets at dissimilar times give a positive covariance, O D. Positive and negative deviations between assets give a zero covariance.Under current GAAP, extraordinary items are reported as other gains/losses in the nonoperating section. A) True B False
- 1. Calculate operating profit margin ratio and net profit margin ratio for the year 2015, 2016 and 2017.By choosing assets that do not exhibit a high positive covariance with each other, the systematic risk be partially eliminated? a.false b.trueWhich of the following statements regarding IFRS accounting for goodwill is/are incorrect: (i) Negative goodwill is reported as a liability (ii) A goodwill impairment expense decreases the carrying amount of goodwill on the consolidated SoFP (iii) The calculation of goodwill at acquisition date must include the fair value of non-controlling interests in the acquiree
- Under IFRS, the initial revaluation of equipment when book value exceeds fair value results in a. An increase in net income. b. A decrease in net income. c. An increase in other comprehensive income. d. A decrease in other comprehensive income.An impairment loss for goodwill is calculated as the difference between ________. Group of answer choices the fair value of the reporting unit (including goodwill) and the book value of the reporting unit (including goodwill) the implied fair value of goodwill and its book value the fair value of the reporting unit (including goodwill) and the fair value of its net assets (without goodwill) the book value of the reporting unit (including goodwill) and the book value of its net assets (without goodwill)In reference to the determination of goodwill impairment, which of the following statements is correct? Question 2Answer a. The goodwill impairment test under ASC 350-20-35 is a three-step process. b. Under FASB, firms must first compare carrying values (book values) at the headquarter level. c. Firms can reverse previously recognized impairment losses. d. If the reporting unit's fair value exceeds its carrying value, goodwill is unimpaired.
