1
Q
How to calculate Goodwill?
A
Fair Value surrendered by parent minus Fair value of all identified assets and liabilities
2
Q
Goodwill
A
Has an indefinite life
No Longer Amortized
Recorded as intangible asset on consolidated balance sheet
And should be tested each year for impairment (written down if impaired)
3
Q
Impairment test for goodwill
A
Compare Fair Value with Book Value. (impaired if BV is > than FV)
4
Q
More likely than not “Test”
A
More likely than not (>50%) FV exceeds cost = No impairment test is needed.
5
Q
Bargain Purchase
A
Company is worth more than what was paid for it.
Recognized immediately as a Gain
A Free CPA Notes FAR
flashcards
Decks in class (30)
# Cards
-
Other Financial Statements3
-
Discontinued Operations6
-
Segment4
-
Warranties and Coupons0
-
Investments0
-
Intangible Assets8
-
IFRS vs GAAP20
-
Inventory0
-
Statement of Cash Flows7
-
Statement of Cash Flows - Direct Method3
-
Statement of Cash Flows - Indirect Method2
-
Accounting for Acquisition6
-
Goodwill5
-
Intercompany Transactions4
-
Investments - Trading0
-
Investments - AFS2
-
Investments - HTM1
-
Equity Method0
-
Government Wide Financial Statements0
-
Government Fund Financial Statements0
-
Not for Profit18
-
Deferred Tax Assets2
-
Deferred Tax Liabilities1
-
Deferred Taxes - Temp vs Permanent9
-
Leases - Operating vs Capital6
-
Leases - Direct Financing Lease5
-
Leases - Capital Lease Lesee3
-
Pensions - Balance Sheet Reporting5
-
Pensions - Expense0
-
Pensions - Accumulated OCI0
