Compare the differences in accounting treatment for goodwill between U.S. GAAP and IFRS.
What will be an ideal response?
Both U.S. GAAP and IFRS require goodwill recognition in business combinations in which the fair value of the consideration paid is more than the net fair value of the assets and liabilities assumed. Following acquisition, an assessment for goodwill impairment is required at least annually under both sets of standards. If there are indicators that reflect a possible impairment, the assessment is required to be performed more often. Both standards provide that once goodwill impairments are recognized, they will no longer be recoverable. There are differences, however, with respect to the way goodwill impairment is tested for and recognized. Specifically, goodwill allocation, impairment testing, and the determination of impairment loss are different under U.S. GAAP and IFRS.
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When bonds are issued by a company, the accounting entry shows an
a. increase in liabilities and a decrease in stockholders' equity. b. increase in liabilities and an increase in stockholders' equity. c. increase in assets and an increase in liabilities. d. increase in assets and an increase in stockholders' equity.
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A. end-user investigation B. extensive information search C. low involvement purchase D. internal information search E. minimal information search
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a. Activities performed on a stage in front of others b. The tools a person uses to do their job c. The carrying into action a duty or task d. None of the above
Generally, indorsers are not liable under signature liability if
a. they write the words "without recourse" next to their signatures on the instrument. b. they are not the drawee. c. a check is presented for payment within 30 days after the indorsement. d. they are an accommodation party.