What type of "event" results in goodwill being recorded on a company's balance sheet? How is goodwill evaluated to determine whether this specific asset is impaired?  If it is deemed to be impaired, what actions does a company need to take?

Q: if a firms expense equal or exceed it's revenue what actio might management take

A: Explanation is given below,

Q: What type of intangible assets are the Trade name, customer Relationship, the Non-Compete agreement,…

A: Types of Assets: Assets is of Two Types: Current Assets and Fixed Assets   1. Current Assets are…

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: What is residual value or salvage value? Why and how is it calculated in accounting?

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: How do you view goodwill on the balance sheet - specifically, if certain levels of it would cause…

A: 1.) I see the goodwill on the balance sheet as synergies , which was estimated at the time of the…

Q: what is accounting for goodwill and what are its implications?

A: Goodwill is an intangible asset. It generally arises from the acquisition of a business. In 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: 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: What account is credited when a company receives donated assets? What is the rationale for this…

A: When a company receives donated assets and if the company is a for-profit company then 'Contribution…

Q: What Is Goodwill And How Is It Accounted For?

A: Definition:   Goodwill: Goodwill is a good reputation developed by a company over the years. This is…

Q: Which one of the following is used as a criterion for deciding whether a resource should be regarded…

A: Assets:-All resources owned or controlled by a business are called assets.It is used to produce…

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: Define goodwill for accounting purposes

A: When one firm is acquired by another, an intangible asset known as goodwill is transferred together…

Q: determining if goodwill is impaired and how to allocate any impairment loss?

A: The impairment of goodwill occurs when the recognised Goodwill that way associated with acquisition…

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: When a company changes the way it depreciates an asset in midstream, what change would be made to…

A: Depreciation:   Depreciation refers to the reduction in the monetary value of a fixed asset due to…

Q: A company should record an asset called "Goodwill" when it purchases another company for an amount…

A: Goodwill is one of the intangible assets.

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: How Goodwill is accounted for on financial statement. What is inter-company long-term construction…

A: Goodwill is an intangible asset reported under the non-current assets in the Balance sheet. Only…

Q: How should goodwill be amortized?

A: Goodwill is an example of intangible assets which has no physical identity.

Q: What is an Asset impairment in accounting and what are the factors for considering an impairment?

A: The question is based on the concept of Financial Accounting. An asset impairment is the subsequent…