Question

Assuming that all unrelated acquisitions are at arm's length, why is the accurate valuation of goodwill so important? Why should you be concerned about it?

Do you think that FAS 142 helped provide accuracy to the valuation of goodwill?

Answer 1

Given data:

Assuming that all unrelated acquisitions are at arm's length, why is the accurate valuation of goodwill so important

Requisted:

1.Why should you be concerned about it?

2.Do you think that FAS 142 helped provide accuracy to the valuation of goodwill?

solution:

1.Why should you be concerned about it?

It is a troubling term as there is no settled nature to cooperative attitude. It is uniquely ascertained premise the thought and individuals 's supposition . likewise, typically cooperative attitude becomes possibly the most important factor amid unions and acqusitions and if wrongly the organization overpays positive attitude then it needs to compose back the positive attitude sum which will hurt the speculators as their offer costs will fall.

2..Do you think that FAS 142 helped provide accuracy to the valuation of goodwill?

FAS 142 is attempting to try and out the altruism factor where administration can't only multi day conclude that they have to discount a lump of the generosity sum . they have to complete an appropriate test and on a yearly premise make reductins in cooperative attitude so speculators don't need to manage sudden cuts in altruism sum which would , inturn, influence their offer costs.