The impairment was because the assessment of Umbros goodwill resulted in impairment charges. Other goodwill impairment indicators are significant changes in the climate of business, results of operations, a fall in investment value, or expecting the carrying amount to not be recoverable. 3. How did Nike reflect this impairment in financial statements? The impairment was reflected in financial statements under the head Identifiable intangible asset, goodwill, and umbra impairment as impairment charge.
Peter Swap I. Issue: Will recognizing compensation expense as part of Mizri Corporation’s stock compensation plan faithfully represent the exchange? II. GAAP List: * 718-10-30-22: An equity instrument for which it is not possible to reasonably estimate fair value at the grant date shall be accounted for based on intrinsic value * 718-20-35-3: A modification of an equity award shall be treated as an exchange of the original award for a new award incurring additional compensation cost for any incremental value III. Alternatives: A.
1. For the year-end December 31, 2007, financial statement, what amount should M record as a liability? According to FASB 450-20-25-1, when a loss contingency exists, the likelihood that the future event or events will confirm the loss or impairment of an asset or the incurrence of a liability can range from probable to remote. An estimated loss from a loss contingency shall be accrued by a charge to income if both of the following conditions are met a. Information available before the financial statements are issued or are available to be issued indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statement.
Page 484 has formulas!! 6. When the firms maintains a target leverage ratio, we compute its levered value V^L as the present value of its free cash flows using the WACC, whereas its unlevered value V^U is the present value of its free cash flows using its unlevered cost of capital or pretax WACC. 15.3 Recapitalizing to Capture the Tax Shield 1. when securities are fairly priced, the original shareholders of a firm capture the full benefit of the interest tax shield from an increase in leverage 15.4 Personal
Calculate the PAYG instalment income and the instalment due to the ATO. Complete the BAS Summary boxes below. Using a general journal format, explain how the payment transaction would be recorded in the accounting system. Supplies you have made Total sales & income & other supplies including capital (GST inclusive) G1 Exports Other GST-free supplies Input taxed sales & income & other supplies ADD G2 + G3 + G4 G1 minus G5 G6 Adjustments (must be total transaction value, i.e. GST inclusive) ADD G6 + G7 Divide G8 by eleven G9 66 191 728 100 G2 G3 Acquisitions you have made Capital acquisitions (GST inclusive) All other acquisitions (GST inclusive) ADD G10 + G11 Acquisitions for making input taxed sales & income & other supplies Acquisitions with no GST in the price Total estimated private use of acquisitions + non-income tax deductible acquisitions ADD G13 + G14 + G15 G7 G8 0 728 100 G12 minus G16 Adjustments (must be total transaction value, i.e.
When / if MR is higher than MC then MP would result in a profit for Company A. However, if MC is higher than MR Company A, would experience a loss. Utilizing method the Total Revenue – Total cost method; TR-TC method which depends on P (profit) = Revenue - Cost. When utilizing this method the first step is to determine the results of this equation P=TR-TC. Based on the given scenario for Company A and with utilizing the given data table.
Beginning of a recession and the time that it is recognized that the event is occurring B. Time the need for fiscal action is recognized and the time that action is actually taken C. Time that fiscal action is taken and the time that action has an impact on output, employment, and the price level D. Time that fiscal action has an impact on output, employment, and the price level and the time by which it can be determined if the policy is
Merger or acquisition of Smithon by Johnson Services a) If the two companies are merged then Smithon could use Johnson Company’s NOL carry forward. The amount of the taxable income of any new loss corporation for any post-change year which may be offset by pre-change losses shall not exceed the section 382 limitation for such year. As in IRC sec 382 limitations are except as otherwise provided in this section, the section 382 limitation for any post-change year is an amount equal to— (A) the value of the old loss corporation, multiplied by (B) the long-term tax-exempt
Which of the following is not considered an advantage of LIFO when prices are rising? a. The inventory will be overstated. b. The more recent costs are matched against current revenues.
Stock market conditions. Capital budgeting. The level of economic activity. The level of interest rates. Multiple Choice Question 82 The legal system and market forces impose substantial costs on individuals and institutions that engage in unethical behavior.