Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 1, Problem 1.5C
Risks Associated with Acquisitions
Not all business combinations are successful, and many entail substantial risk. Acquiring anothercompany may involve a number of different types of risk. Obtain a copy of the 10-K report forAlphabet Inc. (parent company ofGoogle Inc.) for the year ended December 31, 2016 available atthe SEC’s website (www.sec.gov). The report also can be accessed through Yahoo! Finance or thecompany’s Investor Relations page.
Required
On pages 9-10 of the 10-K report, Alphabet provides information to iwes1ors about its motivationfor acquiring companies and the possible risks associated with such acquisitions. Briefly discussthe risks that Google sees inherent in potential acquisitions
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
I need unique and correct answer. Don't try to copy from anywhere. Do not give answer in image formet and hand writing
General Motors invests in securities of other companies. Access GM’s 2019 10-K (which includes financial statements) using EDGAR at www.sec.gov.
Required:
What is the amount of any available-for-sale investment securities reported in the balance sheet?
Is there an amount you can’t find in the balance sheet but that you know must be there?
How are unrealized gains or losses on available-for-sale investments reported: in net income or OCI?
In what note does GM indicate that policy?
Are any investments reported by the equity method?
In what note does GM provide an in-depth discussion of them?
What amounts from equity method investments are reported in the 2019 income statement?
Hello,
Can you help with the questions attached, thanks much.
Chapter 1 Solutions
Advanced Financial Accounting
Ch. 1 - What types of circumstances would encourage...Ch. 1 - How would the decision to dispose of a segment of...Ch. 1 - Prob. 1.3QCh. 1 - Prob. 1.4QCh. 1 - Prob. 1.5QCh. 1 - Prob. 1.6QCh. 1 - Prob. 1.7QCh. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - Prob. 1.10Q
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Within the measurement period following a business...Ch. 1 - Prob. 1.16QCh. 1 - Prob. 1.1CCh. 1 - Prob. 1.2CCh. 1 - Prob. 1.3CCh. 1 - Prob. 1.4CCh. 1 - Risks Associated with Acquisitions Not all...Ch. 1 - Prob. 1.6CCh. 1 - Prob. 1.1.1ECh. 1 - Prob. 1.1.2ECh. 1 - Prob. 1.1.3ECh. 1 - Multiple-Choice Questions on Complex Organizations...Ch. 1 - Prob. 1.1.5ECh. 1 - Prob. 1.2.1ECh. 1 - Prob. 1.2.2ECh. 1 - Multiple-Choice Questions on Recording Business...Ch. 1 - Prob. 1.2.4ECh. 1 - Multiple-Choice Questions on Recording Business...Ch. 1 - Multiple-Choice Questions on Reported Balances...Ch. 1 - Multiple-Choice Questions on Reported Balances...Ch. 1 - Prob. 1.3.3ECh. 1 - Prob. 1.3.4ECh. 1 - Prob. 1.4.1ECh. 1 - Prob. 1.4.2ECh. 1 - Prob. 1.4.3ECh. 1 - Multiple-Choice Questions Involving Account...Ch. 1 - Prob. 1.4.5ECh. 1 - Prob. 1.5ECh. 1 - Prob. 1.6ECh. 1 - Prob. 1.7ECh. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10ECh. 1 - Balances Reported Following Combination Palm...Ch. 1 - Goodwill Recognition Spur Corporation reported the...Ch. 1 - Acquisition Using Debentures Planter Corporation...Ch. 1 - Bargain Purchase Using the data resented in E1-13,...Ch. 1 - Prob. 1.15ECh. 1 - Prob. 1.16ECh. 1 - Prob. 1.17ECh. 1 - Prob. 1.18ECh. 1 - Prob. 1.19ECh. 1 - Prob. 1.20ECh. 1 - Prob. 1.21ECh. 1 - Prob. 1.22ECh. 1 - Prob. 1.23ECh. 1 - Prob. 1.24PCh. 1 - Prob. 1.25PCh. 1 - Prob. 1.26PCh. 1 - Acquisition in Multiple Steps Peal Corporation...Ch. 1 - Prob. 1.28PCh. 1 - Prob. 1.29PCh. 1 - Prob. 1.30PCh. 1 - Prob. 1.31PCh. 1 - Computation of Account Balances Saspro Division is...Ch. 1 - Prob. 1.33PCh. 1 - Prob. 1.34PCh. 1 - Prob. 1.35PCh. 1 - Business Combination Following are the balance...Ch. 1 - Prob. 1.37PCh. 1 - Prob. 1.38PCh. 1 - Prob. 1.39PCh. 1 - Prob. 1.40P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The following is attached to the company's financial statements, pay attention to the noncurrent liabilities and shareholders’ equity sections. Questions:a. Based on the financial statements above, explain possible “debt to equity swap” scheme carried out by the client!b. What evidence do you need to collect to ensure that the client's debt to equity swap is free from material misstatement?arrow_forwardHello, Can you help with the questions attached, thanks much.arrow_forwardI got the first two parts, but could you explain to me how to find part C?arrow_forward
- In 2004, Google fi led a Form S-1 registration statement with the US SEC to register its initial public off ering of securities (Class A Common Stock). In addition to a large amount of fi nancial and business information, the registration statement provided a 20- page discussion of risks related to Google’s business and industry. Th is type of qualitative information is helpful, if not essential, in making an assessment of a company’s credit or investment risk. Which of the following is least likely to have been included in Google’s registration statement? A . Audited fi nancial statements. B . Assessment of risk factors involved in the business. C . Projected cash fl ows and earnings for the business.arrow_forwarda.Prepare the related journal entries of the debt investment for the year 2018. b.Prepare journal entries to record the purchase, the fair value adjustment and the selling of investment in Gemilang Bhd. c. Prepare journal entries to record the purchase, the dividend received and the fair value adjustment of investment in Harmoni Bhd. d.Explain FOUR (4) reasons why companies can use the financial assets to sustain the business during the COVID-19 pandemic.arrow_forwardPlease show the proper solution in a good accounting. (There is a add, less, multiplied by and etc.)arrow_forward
- Question : Please examine, analyze, present (incl. in tables and charts) and explain your answers on the following:1. What is the strategic rationale/logic of Covestroís management to engage in this acquisition? (Summarize in a few short bullet points.)2. Examine Covestroís share price graph from Jan 2017 until today i.e. Nov 2021.(a) Describe and explain your observations and speculate/try to rationalize the share price movements, dividing them into four periods: early 2017 until peak in early 2018; 2018 until March2020; between March and Sep 2020; and from Oct 2020 until Oct 2021. Make use of newscommentaries and Covestroís annual and quarterly Önancial reports.1(b) Do the equity markets view the DSM RFM acquisition positively?arrow_forwardPlease do not give solution in image format ?.arrow_forwardDon't use Ai. Answer in step by step with explanation.arrow_forward
- 1. Assuming that the company’s business model has an objective of holding the debt securities to collect contractual cash flows, what is the realized gain on sale of the Yankee bonds in 2021? 2. Assuming that the company's business model has an objective of holding debt securitiees to collect contractual cash flows, what is the total unrealized holding gain/loss to be reported in the profit/loss for 2021?arrow_forwardRecent Merger and Acquisition (M&A) Activities for AT&T and Verizon evaluate the effect of interest rates and time value of money by presenting a summary of recent M&A activities for both companies. Summary should include a brief discussion of the financing tools used and the cost of capital for these M&A activities.arrow_forwardShort-term investments accountants must report on the balance sheet (depending on circumstances) are: Available-for-sale securities or intangible assets. Trading securities or available-for-sale securities. Held-to-maturity investments or trading securities. Inventory or trading securities. Your company purchases a 60% share in ABC Corporation. As the accountant, how do you treat the revenue, expense, assets and liabilities of ABC Corporation? Depreciate the assets minus revenue on the balance sheet. These are ignored by the investor company. Combine the revenue, expenses, assets and liabilities with that of the investor company. Proportionately recognize in the investor company’s income statement. How would an accountant record a written promise-to-pay from a customer? It would be recorded as a Loan on the company’s financial statements. It would be noted in a footnote on the Income Statement. It would be recorded as Note receivable on the company’s…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Fundamentals Of Financial Management, Concise Edi...FinanceISBN:9781337902571Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningFundamentals of Financial Management (MindTap Cou...FinanceISBN:9781285867977Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningFundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningExcel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Fundamentals Of Financial Management, Concise Edi...
Finance
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781285867977
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
What Are Stock Buybacks and Why Are They Controversial?; Author: TD Ameritrade;https://www.youtube.com/watch?v=2O4bmcliaog;License: Standard youtube license