Topic: Intangible Assets Which of the following statements is incorrect regarding the recognition of intangible assets in a business combination

11. Topic: Intangible Assets Which of the following statements is incorrect regarding the recognition of intangible assets in a business combination:

a. Intangible assets arising from contractual or legal rights are recognized separately from goodwill
b. Intangibles that can be separated from the business and sold, rented or licensed are recognized separately from goodwill
c. Separately recognized intangibles are identified as either limited life or indefinite life intangibles
d. The acquirer in a business combination does not recognize intangible assets unless they appear on the investee company's balance sheet

12. Topic: Goodwill impairment When a company assigns goodwill to a reporting unit acquired in a business combination, it must:
a. Record an impairment loss if the fair value of the net identifiable assets held by a reporting unit decreases.
b. Record an impairment loss if the fair value of the reporting unit decreases.
c. Record an impairment loss if the carrying value of the reporting unit is less than the fair value of the reporting unit.
d. Record an impairment loss if the fair value of the reporting unit is less than its carrying value and the carrying value of goodwill is more than the implied value of its goodwill.

Solutions

Expert Solution

11.

Answer: d

Intangible assets arising from any contractual or legal rights should be presented separately in the face of the financial statement. Intangibles that can be separated from the business and sold, rented or licensed are recognized separately from goodwill. These intagible assets can have either definite or indefinite useful life. The acquirer may show intangible assets in the statement even if it is not shown in the financial statement of investee; for example, goodwill, customer base etc.

12. Answer: d

Impairment is recorded when the carrying of a reporting unit is more than the fair value of the total reporting unit.

Fair value alone decreasing cannot make sure that there is impairment. It should be cross checked with the carrying value

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

Under ASC Topic 606 for revenue recognition, which of the following statements is not accurate regarding...

Under ASC Topic 606 for revenue recognition, which of the following statements is not accurate regarding performance obligations? Multiple Choice Firms must disclose qualitative information about their performance obligations. Firms must disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations. Firms must disclose warranties provided. Firms are not required to disclose any judgments used to apply the standard.

4. Revenues Which of the following statements is incorrect regarding revenues? a.Revenues are increases in assets...

4. Revenues Which of the following statements is incorrect regarding revenues? a.Revenues are increases in assets during a period from delivering or producing goods, rendering services, or other activities that are the company's ongoing major or central operations. b.Revenues are increases in the net assets of a company from all other events and circumstances during a period except those that result from investments by owners. c.Operating activities that generate revenues are the company's ongoing primary activities in producing and delivering...

Which of the following statements is INCORRECT regarding Master Budget?

Which of the following statements is INCORRECT regarding Master Budget? 1 Master budget is one type of operational budget 2. Master budget is focusing specific volume of business activity that is expected. 3 Budgeted balance sheet should be prepared before budgeted income statement. 4. Master budget starts from preparing sales budget.

Which of the following statements is incorrect regarding the taxation of trusts and estates? A trust...

Which of the following statements is incorrect regarding the taxation of trusts and estates? A trust computes its tax using a tax rate schedule that is unfavorable relative to the rate A. schedules applicable to individuals. A trustee may not elect to treat any part of the trust's estimated tax payments as paid by a B. beneficiary. Trust income that is passed to a beneficiary retains the same character in the beneficiary's hands as when received by the trust. D....

Which of the following statements is INCORRECT regarding action potentials? A. The axon terminal of a...

Which of the following statements is INCORRECT regarding action potentials? A. The axon terminal of a neuron can send only one type of NT to the dendrites of its postsynaptic neighbor. B. AP signals can be summed spatially, but cannot be summed temporally because they are all-or-nothing events. C. Post-synaptic neurons can receive information from many different neurons via their NT receptors. D. If an NT causes the postsynaptic cell’s membrane to become hyperpolarized, this reduces the likelihood that it...

Which of the following statements is incorrect regarding a hematocrit: a manual hematocrit is an underestimation...

Which of the following statements is incorrect regarding a hematocrit: a manual hematocrit is an underestimation of the true value which is obtained via the automated method it is the percentage of RBCs in sample of whole blood it provides an indication of the oxygen-carrying capacity of an individual it is the packed cell volume divided by the volume of a whole blood sample Which of the following is incorrect regarding a packed cell volume (PCV): PCV is not the...

13. Which of the following statements is incorrect regarding transport proteins? They are required to transport...

13. Which of the following statements is incorrect regarding transport proteins?a. They are required to transport ions across cell membranes.b. They serve to carry non-polar molecules across the cell membrane.$c_{1}$ - They are required to transport amino acids across cell membranes.d. They are not required to transport steroids across cell membranes.e. They are present in cell membranes.14. What is not an example of a neurotransmitter?a. Acetylcholineb. Noradrenalinc. Serotonind. Dopaminee. Cytosine15. How many transmembrane sections are there in a G-protein coupled...

Which of the following statements regarding the benefit of homeownership is incorrect? Select the most correct...

Which of the following statements regarding the benefit of homeownership is incorrect? Select the most correct answer. Select one: a. A hedge against rising rental costs. b. Certainty of substantial capital growth over time. c. Real estates are illiquid investments and the transaction costs are high. d. Capital Gains Tax main residence exemption available in Australia.

Which of the following statements is INCORRECT regarding a corporate mission? It reflects a company's purpose....

Which of the following statements is INCORRECT regarding a corporate mission? It reflects a company's purpose. It usually includes a description of the company’s competitive advantage. It is the long-term action plan to be adopted by the company. It defines a company's reason for existence.

1. Which of the following statements is incorrect regarding qualifying criteria for the health insurance premium...

1. Which of the following statements is incorrect regarding qualifying criteria for the health insurance premium tax credit? A) Household income must be below designated levels. B) The taxpayer cannot have access to affordable essential coverage through an employer. C) The insurance policy must be purchased directly from an insurance company. D) The individual may not be eligible as a dependent of another taxpayer. 2. If a taxpayer's AGI is greater than $150,000, no penalty will be imposed if the...

Subjects