Code Section 197 Case Study

Goodwill is considered impaired when the implied fair value of goodwill in a reporting unit of a company is less than its carrying amount, or book value, including any deferred income taxes. By qualitative factors, if the fair value is less than its book value (likelihood more than 50%), two step of the goodwill impairment test is necessary. According to ASC 350-20-35-2 and 3(A&B&D), if the company determines that it is not more likely than not that fair value is less than the book value, it does

If the 5-year amortization were applied in its place of the 40-year timetable, then it is necessary for Blockbuster to identify the goodwill in larger amounts. This would increase tax liability of Blockbuster, which would have represented a loss of $0.09 (0.58 - 0.49) per share

of CGUs) and then to the other assets in the CGU (or groups of CGUs) pro-rata on the basis of the carrying amount of each asset in the CGU (or groups of CGUs). An impairment loss recognised for goodwill is recognised immediately in profit or

Since 2001, amortization would not permitted for goodwill assets. Instead write-down of goodwill entity with continuous losses must be done.

4. The accounting for income taxes will have to be revised. Pam suggests that the first entry be reversed and a new one be set up. Pam also was informed by Linda Durkee that purchased goodwill could be amortized over 15 years and was deductible for income tax purposes. Consequently, Hydromaint has elected to amortize goodwill over 15 years.

Section 360-10-35-17 of the Code states that an impairment loss shall be recognized if the carrying value of a fixed asset is not recoverable and exceeds its fair value. The carrying value of the fixed asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and disposal of the asset. An impairment loss shall be measured by the amount by which the carrying value exceeds the fair value.

ASC 320-10-35-34: “The fair value of the investment would then become the new amortized cost basis of the investment and shall not be adjusted for subsequent recoveries in fair value.”

Question 1 of 3 (GAAP): Does the release of the $105 million LOL valuation allowance benefit the tax provision or is the adjustment considered an adjustment to acquired goodwill when applying the acquisition method of accounting?

Many of the problems that Carl has found concerning the new employee orientation could have been avoided. Carl is a recently hired employee himself. He should have kept up with the progress of the new employee orientation and checked on the files for the applicants. ABC, Inc. should also have made sure that their new employee was capable of doing his job efficiently. If Carl had stayed on top of his project, the problems that he faced would not have occurred.

On February 11 of the year 2015, House File 214 was introduced in Iowa. This bill serves to effectively eliminate homeschooling under the previously established Independent Private Instruction designation. I am writing this recommendation report to help you evaluate homeschooling as an educational choice for families who may not have other good options available to them.

The authoritative guidance for asset impairment is to ensure that impairment is recorded and dealt with as depreciation. The scope of the standard is writing off of assets and depreciation. According to the guidance of 360-10-35, it address how long-lived assets that are intended to be held and used in an entity’s business shall be reviewed for impairment. The impairment loss can only be recognized if the carrying amount of a long-lived assets is not recoverable and

when dealing with their number one assets: telecommunication licenses and Goodwill. A summary of the critical accounting estimates used in preparing Verizon financial statements is as follows: Wireless licenses and Goodwill are a significant component of the company’s consolidated assets. Both wireless licenses and Goodwill are treated as indefinite-lived intangible assets and, therefore are not amortized, but rather are tested for impairment annually in the fourth fiscal quarter, unless there are events requiring an earlier assessment or changes in circumstances during an interim period that indicate these assets may not be recoverable. Verizon believes its estimates and assumptions are reasonable and represent appropriate marketplace considerations as of the valuation date. Although the company uses consistent methodologies in developing the assumptions and estimates underlying the fair value calculations used in its impairment tests, these estimates are uncertain by nature and can vary from actual results. It is possible that in the future there may be changes in the assumptions, including estimated cash flow projections, margins, and growth rates and discount rates which could result in different fair value estimates and an impairment charge.

The accused was released on bail by the police officer on bail under Section 436 Cr.P.C. when he was initially charged with committing the offence punishable under Section 324 I.P.C. which is a bailable offence. Subsequently on the basis of the medical report the offence was converted into one under Section 326 I.P.C., which is a non-bailable offence. As soon as the offence was discovered to be one under section 326 I.P.C. section 436 Cr.P.C. ceases to be applicable to the case of the accused. The investigating officer can in such circumstances take appropriate action to arrest the accused if he desires to do so for investigating the case as a non-bailable offence.

David Haynes examines the Section 215 program and its overreach. Clearly, Haynes isn’t fond of the program. Section 215 allows the National Security Agency to gather information by listening in on the conversations of unsuspecting Americans.

|liabilities arising from initial recognition of goodwill for which amortisation is not deductible for tax purposes; | |