State when the company record the measurement period adjustment, In your opinion this an appropriate use of measurement period adjustment, and explain.

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Answer 1

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Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 2, Problem 4AFS

A.

To determine

State when the company record the measurement period adjustment, In your opinion this an appropriate use of measurement period adjustment, and explain.

B.

To determine

Prepare the journal entries that would have been needed to adjust the contingent consideration to zero and record the impairment of the intangibles. How does this differ from the company actually reported?

C.

To determine

Identify the incentives might management have for presenting their financial statements as they did rather than using the method that you recorded in part B above.

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Answer 2

Question

Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 2, Problem 4AFS

A.

To determine

State when the company record the measurement period adjustment, In your opinion this an appropriate use of measurement period adjustment, and explain.

B.

To determine

Prepare the journal entries that would have been needed to adjust the contingent consideration to zero and record the impairment of the intangibles. How does this differ from the company actually reported?

C.

To determine

Identify the incentives might management have for presenting their financial statements as they did rather than using the method that you recorded in part B above.

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Answer 3

Question

Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 2, Problem 4AFS

A.

To determine

State when the company record the measurement period adjustment, In your opinion this an appropriate use of measurement period adjustment, and explain.

B.

To determine

Prepare the journal entries that would have been needed to adjust the contingent consideration to zero and record the impairment of the intangibles. How does this differ from the company actually reported?

C.

To determine

Identify the incentives might management have for presenting their financial statements as they did rather than using the method that you recorded in part B above.

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Answer 4

Question

Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 2, Problem 4AFS

A.

To determine

State when the company record the measurement period adjustment, In your opinion this an appropriate use of measurement period adjustment, and explain.

B.

To determine

Prepare the journal entries that would have been needed to adjust the contingent consideration to zero and record the impairment of the intangibles. How does this differ from the company actually reported?

C.

To determine

Identify the incentives might management have for presenting their financial statements as they did rather than using the method that you recorded in part B above.

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Answer 5

Chapter 2, Problem 4AFS

A.

To determine

State when the company record the measurement period adjustment, In your opinion this an appropriate use of measurement period adjustment, and explain.

B.

To determine

Prepare the journal entries that would have been needed to adjust the contingent consideration to zero and record the impairment of the intangibles. How does this differ from the company actually reported?

C.

To determine

Identify the incentives might management have for presenting their financial statements as they did rather than using the method that you recorded in part B above.

Answer 6

Chapter 2, Problem 4AFS

A.

To determine

State when the company record the measurement period adjustment, In your opinion this an appropriate use of measurement period adjustment, and explain.

Answer 7

Chapter 2, Problem 4AFS

A.

To determine

State when the company record the measurement period adjustment, In your opinion this an appropriate use of measurement period adjustment, and explain.

Answer 8

B.

To determine

Prepare the journal entries that would have been needed to adjust the contingent consideration to zero and record the impairment of the intangibles. How does this differ from the company actually reported?

Answer 9

B.

To determine

Prepare the journal entries that would have been needed to adjust the contingent consideration to zero and record the impairment of the intangibles. How does this differ from the company actually reported?

Answer 10

C.

To determine

Identify the incentives might management have for presenting their financial statements as they did rather than using the method that you recorded in part B above.

Answer 11

C.

To determine

Identify the incentives might management have for presenting their financial statements as they did rather than using the method that you recorded in part B above.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 2 - Prob. 1Q Ch. 2 - What are pro forma financial statements? What is...Ch. 2 - Prob. 3Q Ch. 2 - AOL announced that because of an accounting change...Ch. 2 - Prob. 1BE Ch. 2 - Tesla Acquires SolarCity (2016). On November 21,...Ch. 2 - Prob. 3AFS Ch. 2 - Prob. 4AFS Ch. 2 - Prob. 5AFS Ch. 2 - Prob. 1E

State when the company record the measurement period adjustment, In your opinion this an appropriate use of measurement period adjustment, and explain.

State when the company record the measurement period adjustment, In your opinion this an appropriate use of measurement period adjustment, and explain.

Prepare the journal entries that would have been needed to adjust the contingent consideration to zero and record the impairment of the intangibles. How does this differ from the company actually reported?

Identify the incentives might management have for presenting their financial statements as they did rather than using the method that you recorded in part B above.

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