How is Goodwill computed on the date of acquisition?
How is Goodwill computed on the date of acquisition?
- What is Goodwill? Explain in your own words. Provide citation from ASC 350.
- How is Goodwill computed on the date of acquisition? Explain in your own words and provide citation from ASC 805.
- Describe the steps involved in computing Goodwill impairment losses for a public company. Assume that AM Enterprises is a public company rather than a private company. Explain in your own words. Provide citation from ASC 350.
- Goodwill impairment testing was a 2 step process for public companies prior to January 2020. Accounting Standards Update 2017-04 eliminated step 2 in the two step process. What was the reason for eliminating step 2 of the process? How does the elimination of the second step affect the impairment of goodwill? Explain in your own words and provide citation from ASC 350, paying close attention to pending content.
- What do we mean by an Operating Segment? Component of an Operating Segment? Reporting Unit? Explain in your own words and provide citation from the ASC 350.
- What difference does it make if Components of an Operating Segment are combined into a single Reporting Unit or separated into different Reporting Units? Explain in your own words. Provide citation from ASC 350.
- Conduct a fixed asset impairment test for ZD and for Hope. Present a table by asset grouping and compute the impairment loss for each asset grouping; explain the calculations in your own words and provide citation from ASC 360.
- What part of the fixed asset impairment test does not make any sense from a conceptual point of view? Why do you think the rules were written the way they were? Provide citation from ASC 360.
- Conduct a Lower-of-Cost-or-Market Analysis for the inventory of ZD and Hope. Compute the loss (if any). Explain your calculations in your own words and provide citation from ASC 330.
- Compute the goodwill impairment loss (if any) for ZD and Hope separately and for ZD and Hope combined assuming that Accounting Standards Update 2017-04 has been implemented and that the losses (if any) from Question7 and Question 9 have been recorded prior to the goodwill impairment loss testing. Explain in your own words and provide citation from ASC.
- Provide journal entries to record losses (if any) from Questions 7, 9, 10 above. Show calculations and explain in your own words.
Accounting Research Manager ® 805-30-00 Status – General Accounting Research Manager ® 360-10-00 Status – Status Accounting Research Manager ® 350-10-00 Status – General Accounting Research Manager ® 330-10-00 Status – General Goodwill Impairment Student Version (1) Accounting for Asset Impairment Questions
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