The Issue Of Accounting For Goodwill - 829 Words

The issue of accounting for goodwill has commonly been an area of debate between private and public companies. As the PCC conducted research on the matter they found that many private company stakeholders indicated that the benefits of accounting for goodwill under the traditional GAAP method was worth the associated cost of doing so. The private company financial statement users found that little decision-useful information resulted from the expensive accounting method of goodwill. Many who analyze private companies disregard goodwill when determining the performance and financial condition of private companies. In a survey of financial statement preparers it was found that they did not believe that previous rules for private companies regarding goodwill recognition were inadequate and did not save much cost to these smaller private companies. (Lange, 1) In the amendment created by the influence of the PCC, privately held companies have an optional election for an alternative m easure of goodwill. The formal explanation of the amendment is as follows: â€Å"An entity within the scope of the amendments that elects the accounting alternative in this Update should amortize goodwill on a straight-line basis over ten years, or less than ten years if the entity demonstrates that another useful life is more appropriate (Lange, 2).† US GAAP which pertains to public companies requires that goodwill be tested annually for impairment or in some cases more frequently. In addition,Show MoreRelatedClient Understanding Paper1665 Words   |  7 PagesClient Understanding Paper Accounting Issue: When and why to adjust inventory values to lower of cost or market? Sources: 330-10-35-1 35-1 A departure from the cost basis of pricing the inventory is required when the utility of the goods is no longer as great as their cost. Where there is evidence that the utility of goods, in their disposal in the ordinary course of business, will be less than cost, whether due to physical deterioration, obsolescence, changes in price levels, or other causesRead MoreBalance Sheet and Goodwill1440 Words   |  6 PagesGoodwill is an intangible asset, probably the most intangible of all intangible assets, hard to measure and even more difficult to account for. Goodwill today constitutes a much larger part of acquisition prices than it did previously, resulting in a much greater impact on financial statements. During the twentieth century the concept of goodwill has changed significantly. In the earlier days goodwill was thought of as the good and valuable relationships of a proprietor of a business with his customersRead MoreThe Requirements Of Australian Standards1517 Words   |  7 PagesAccounting for Business Combinations and its relevant issues under the requirements of Australian standards have raised a considerable number of concerns, and therefore remained controversial for both accountants and scholars who have been struggling to deal with the practical – and – theoretical development of the Accounting industry. Regardless of such difficulties, due to the undeniable meaning of Accounting practices and the enormity of transactions involved on a daily basis, it is of great importanceRead MoreThe International Accounting Standards Board1341 Words   |  6 PagesThe IASB Conceptual Framework is a framework developed by the International Accounting Standards Board (IAS B). In a nutshell, what this framework does is to lay out the concepts needed for accurate preparation and presentation of financial statements to external users such as auditors, tax authorities, investors, regulatory authorities and so on. According to the IASB, the Conceptual Framework for Financial Reporting does the following; â€Å"†¦describes the objective of, and the concepts for, generalRead MoreBusiness Combination1719 Words   |  7 PagesAdvanced Accounting October 24, 2013 Abstract In this paper, I will provide an explanation for the business combination method I selected in expanding the corporation by acquiring another firm, the reason for selecting that business combination method, and how the purchase will grow the business. I will also analyze the accounting requirements for the business combination method I selected and how I determined goodwill was impaired and the financial impact of such impaired goodwill. The businessRead MoreValuation of Goodwill1346 Words   |  6 PagesMANAGEMENT OF GOODWILL IN A BUSINESS. INTRODUCTION Goodwill is an intangible element connected with the going concern which include personality, reputation, the company name, convenient and favourable location of the business, quality of merchandise, efficient management, supply and demand for a choice product, affordable prices, efficient labour relations with employees, true and fair view and finally courteous methods of treating customers. Goodwill is often shown on the accounting books and recordsRead MoreCase Study : Super Co Essay1585 Words   |  7 Pagesconcerns you may have regarding adjusted lower cost of market inventory on valuation, recording gain or loss on asset disposal capitalizing interest on building construction, and adjusting goodwill for impairment. 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Impairment on a goodwill is testedRead MoreFinancial Reporting : Private And Public Accounting800 Words   |  4 PagesBackground Information Private and public accounting have long been discussed and disputed in regards to financial reporting. Since the Financial Accounting Standards Board (FASB) was created in 1973, accountants have called for different accounting regulations for private and public accounting sectors, as private companies do not have the resources to meet the complex requirements of public companies. Private companies currently are not required by law to issue annual or quarterly financial statementsRead MoreClient Understanding Paper1727 Words   |  7 Pageslower of cost or market inventory on valuation, Capitalizing interest on building construction, Recording gain or loss on asset disposal, and Adjusting goodwill for impairment. The Financial Accounting Standards Board (FASB) established clear guidelines addressing the items mentioned above. 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Biography Of Ludwig Van Beethoven s Life On All Levels Of...

Decmber 16th 1770 in Bonn Ludwig Van Beethoven was created to be soon form into one of the greatest people that ever walked the earth. As a composer, Ludwig Beethoven can be considered the equivalent of any of today’s stars of popular music. His trend setting compositions made music an integral part of life on all levels of society from the royal courts to the general population. His mass appeal can be attributed to his standard defying compositions that forcibly modernized the 18th century music scene. As with the invention of electric instruments in the 20th century, Beethoven’s powerful playing style and innovation techniques, introduced a new way of perceiving and listening to music. His deafness which was seen as restriction to many,†¦show more content†¦In one moment he could show great respect toward a commoner and then show no regard or respect for the nobles and royalty who were his financial supporters. As with any genius, he preferred the company of other musicians, poets and artists. It can be said that living in a society that prided itself on patronage of artists allowed Beethove n to reach his full potential. As many did before him, Beethoven used his skills to enrich himself and to expand his influence in the discipline of music. Beethoven was considered to be both confused and confusing by a great number of people who knew him. As his volatile mood swings became more erratic, the only things that stayed constant about him were his music and his explosive mood swings. In light of modern medical knowledge, Beethoven was almost certainly bi-polar. This condition was made worse by his alcohol addiction and gradual withdrawing from family and close friends. His eventual death from liver failure was possibly caused by his use of alcohol to mask symptoms of other medical issues. He self-medicated through alternating bouts of alcoholism and brilliant creativity. In modern times, medical treatment and counseling would have surely helped him, but Beethoven lived in a time where genius and madness often went hand in hand. What defines greatness within a musician what does it take to be a legend. To try and make

The Philippine Educational System Free Essays

Two major subsystems – formal and non-formal. The Philippine educational system is composed of two major subsystems: the formal and the non-formal. The formal subsystem consists of sequential academic schooling at three levels. We will write a custom essay sample on The Philippine Educational System or any similar topic only for you Order Now The first two levels are referred to as the basic education level, consisting of six years of primary or elementary education and four years of high school or secondary education. Basic education is intended to provide functional, scientific and social literacy. The Philippine government, through its public schools and the voucher system, provides free education for children up to the secondary level. The post-secondary and tertiary levels include one to three years of technical/vocational education and degree courses requiring a minimum of four years of college/university education. The three levels of schooling just described focus for the most part on providing academic training and scholastic competence. Any organized and systematic learning conducted outside the formal educational system, whether providing certification or not, is referred to in the Philippines as non-formal education. Non-formal education addresses the needs of those who are not able to participate in the formal subsystem, most of whom may have dropped out of the formal system due to poverty. The organization, specific activities, and delivery methods associated with non-formal education are usually designed to meet the expressed needs of distinct clientele, such as primary and high school drop-outs, unemployed adults, and other marginal, dislocated, or disabled groups. Institutionalized in 1977 with the creation of the Office of the Undersecretary for Non-Formal Education under the former Ministry of Education, Culture and Sports, the non-formal education program is still provided separately and apart from the formal system. Efforts are being made to provide clear entry points to higher levels of formal education through a system of equivalency and certification. However, since the system is not yet fully operational, the non-formal education program appears to mainly concentrate on providing participants with skills necessary for employability and competitiveness in the labor market. The availability of non-formal education, however, is useful in that it expands a window of opportunities for education to more citizens from a variety of demographic characteristics, socio-economic origins, and general interests (DECS, 1994). The non-formal system makes education available to a larger number of Filipinos who cannot participate in formal educational programs. Government’s support for and involvement in non-formal education notwithstanding, it must be recognized that the stronger advocacy for and more active implementation of the program in the Philippines could be attributed to private schools, churches, civic organizations, and foundations (Congressional Commission on Education, 1991). Private groups conduct activities ranging from providing basic-level skills training to values formation. The delivery vehicles of these activities include seminars and workshops, community assemblies, television and radio programs, correspondence courses, home visits, self-directed learning modules, and practical work. The curricular designs of the various programs vary from one implementing agency to another, and are tailor-fit to the needs of specific clientele (Gonzales and Pijano, 1997). At present, non-formal education in the Philippines has four main thrusts: develop family life skills, including health, nutrition, childcare, household management, and family planning; promote vocational skills; enhance functional literacy; and cultivate livelihood skills. Gonzales and Pijano (1997) note that given the dichotomy of the Philippine educational system, a subsystem of lifelong learning must perforce lean heavily on and draw services from both the formal and informal sub-systems. They add, however, that the current subsystems still do not reflect the significant and important â€Å"informal† attributes of lifelong learning. Recent developments in the national educational system. In 1994, the Philippine educational system was restructured in an attempt to rationalize and improve the provision of learning opportunities. The system currently has three subdivisions, namely: basic education; technical-vocational education and training; and higher education. How to cite The Philippine Educational System, Papers