Impairment loss reversals are allowed per Select one: a. GAAP for some intangibles and Goodwill b....

Impairment loss reversals are allowed per

Select one:

a. GAAP for some intangibles and Goodwill

b. IFRS for some intangibles and Goodwill

c. GAAP for some intangibles, but not Goodwill

d. IFRS for some intangibles, but not Goodwill

Expert Solution

Impairment loss reversals are not allowed per GAAP except for assets held for sale. Impairment loss reversals are allowed per IFRS.

The answer is Option b.

ekkarill92 answered 2 years ago

Research a good web article on impairment of goodwill or other intangibles. What types of factors...

Research a good web article on impairment of goodwill or other intangibles. What types of factors might impact the recognition of a write-down? Is it merely the economy, or are there other things that might impact operations?

Goodwill is typically evaluated to impairment loss at least once a year. Why is this? An...

Goodwill is typically evaluated to impairment loss at least once a year. Why is this? An example would be greatly appreciated! I'm currently taking Intermediate Accounting 2.

Identifiable Intangibles and Goodwill, U.S. GAAP International Foods, a U.S. company, acquired two companies in 2019....

Identifiable Intangibles and Goodwill, U.S. GAAP International Foods, a U.S. company, acquired two companies in 2019. As a result, its consolidated financial statements include the following acquired intangibles: Intangible Asset Date of Acquisition Fair Value at Date of Acquisition Useful Life Customer relationships January 1, 2019 $4,000,000 4 years Favorable leaseholds June 30, 2019 8,000,000 5 years Brand names June 30, 2019 18,000,000 Indefinite Goodwill January 1, 2019 500,000,000 Indefinite Goodwill was assigned to the following reporting units: Asia $100,000,000...

Identifiable Intangibles and Goodwill, U.S. GAAP International Foods, a U.S. company, acquired two companies in 2013....

Identifiable Intangibles and Goodwill, U.S. GAAP International Foods, a U.S. company, acquired two companies in 2013. As a result, its consolidated financial statements include the following acquired intangibles: Intangible Asset Date of Acquisition Fair Value at Date of Acquisition Useful Life Customer relationships January 1, 2013 $3,200,000 10 years Favorable leaseholds June 30, 2013 4,800,000 12 years Brand names June 30, 2013 14,400,000 Indefinite Goodwill January 1, 2013 400,000,000 Indefinite Goodwill was assigned to the following reporting units: Asia $80,000,000...

Identifiable Intangibles and Goodwill, U.S. GAAP International Foods, a U.S. company, acquired two companies in 2016....

Identifiable Intangibles and Goodwill, U.S. GAAP International Foods, a U.S. company, acquired two companies in 2016. As a result, its consolidated financial statements include the following acquired intangibles: Intangible Asset Date of Acquisition Fair Value at Date of Acquisition Useful Life Customer relationships January 1, 2016 $4,000,000 4 years Favorable leaseholds June 30, 2016 8,000,000 5 years Brand names June 30, 2016 18,000,000 Indefinite Goodwill January 1, 2016 500,000,000 Indefinite Goodwill was assigned to the following reporting units: Asia $100,000,000...

For goodwill impairment test - step one: American corporation - reporting units Subsidiary a Subsidiary b...

For goodwill impairment test - step one: American corporation - reporting units Subsidiary a Subsidiary b Fair value of reporting unit $137,000,000 $ 230,000,000 Carrying value of net assets (excluding goodwill) 112,000,000 210,000,000 Carrying value of goodwill 21,000,000 46,000,000 For goodwill impairment test - step two: Fair value - tangible net assets $ 72,000,000 $ 114,000,000 Fair value - recognized intangibles 43,000,000 80,250,000 Fair value - unrecognized intangibles: trademark 1,500,000 4,000,000 Employment contract 2,000,000 8,000,000 Assembled workforce 5,000,000 5,000,000 In-process...

When should a parent consider recognizing the impairment of loss fro goodwill associated with a subsidiarity?...

When should a parent consider recognizing the impairment of loss fro goodwill associated with a subsidiarity? How should the loss be reported in the Financial Statements?

How does the IFRS evaluation and recording of goodwill compare with the US GAAP? One of...

How does the IFRS evaluation and recording of goodwill compare with the US GAAP? One of your colleagues says that intangible assets should always be amortized over their legal lives. Is he/her correct? Your company needs to raise cash to market a new product it developed. One of your colleagues says “Our Company has an awful lot of goodwill. Why do not we recommend that we sell some of it to raise cash?” How should you respond to him? Contrast...

Generally Accepted Accounting Principles (GAAP) are created by: (Select all that apply) Select one or more:...

Generally Accepted Accounting Principles (GAAP) are created by: (Select all that apply) Select one or more: A. The Securities and Exchange Commission B. The Generally Accepted Accounting Principles Task Force C. The Sarbanes Oxley Act D. The Financial Accounting Standards Board E. The Public Company Accounting Oversight Board Which of the following is included as a component of stockholders' equity? Select one: A. Accounts payable B. Buildings C. Dividends D. Prepaid property taxes E. Retained earnings As inventory and property...

1. Per GAAP, if we borrow some of the project’s costs in a specific loan and...

1. Per GAAP, if we borrow some of the project’s costs in a specific loan and get the rest from cash that we have from the other general borrowings we have made in the past, what interest rate or rates do we use? 2. Per GAAP, this project is unique. It is one project with two parts—a hotel and a small retail area with shops. The hotel is going to take three years to complete and the retail shops will...

Question