Amortization of Goodwill in Cash Flow Statement
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Technical Line: a Closer Look at the Accounting for Asset Acquisitions
No. 2019-05 Updated 10 September 2020 Technical Line A closer look at the accounting for asset acquisitions In this issue: Overview ............................ 1 What you need to know Scope ................................. 2 • The new definition of a business in ASC 805 has resulted in additional transactions being accounted for as asset acquisitions rather than business combinations. A transaction Initial accounting ................ 4 may be considered an asset acquisition under ASC 805 and an acquisition of a business Determine that the for purposes of SEC reporting. transaction is an asset acquisition ..................... 4 • Asset acquisitions are accounted for by allocating the cost of the acquisition to the Measure the cost of the individual assets acquired and liabilities assumed on a relative fair value basis. asset acquisition ............. 5 Goodwill is not recognized in an asset acquisition. Allocate the cost of the • Entities may need to reassess the design of their internal controls over asset acquisitions asset acquisition ........... 18 to make sure they sufficiently address the risks of material misstatements. Evaluate the difference between cost and • This publication includes updated interpretive guidance on several practice issues, fair value...................... 21 including noncash consideration, contingent consideration and exchanges of share- Present and disclose based payment awards in asset acquisitions. the asset acquisition ..... 26 Subsequent accounting .... 26 Overview Other considerations ........ 28 Determining whether an entity has acquired a business or an asset or a group of assets is SEC reporting critical because the accounting for a business combination differs significantly from that of an considerations ............... 30 asset acquisition. Internal control over That is, business combinations are accounted for using a fair value model under which assets asset acquisitions ......... -
Life Sciences Industry Accounting Guide Acquisitions and Divestitures
Life Sciences Industry Accounting Guide Acquisitions and Divestitures March 2020 The FASB Accounting Standards Codification® material is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, and is reproduced with permission. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms. Copyright © 2020 Deloitte Development LLC. All rights reserved. -
Valuations for Financial Reporting and Transfer Pricing Purposes, We Have Selected a Few Areas Where We Frequently See Variations, Including
Bridging the Divide: March 6, 2019 Valuations for Financial Reporting and Tax/Transfer Pricing Nate Levin, Managing Director, Valuation Advisory Susan Fickling-Munge, Managing Director, Transfer Pricing Simon Webber, Managing Director, Transfer Pricing DUFF & PHELPS Duff & Phelps is the global advisor that protects, restores and maximizes value for clients in the areas of valuation, corporate finance, investigations, disputes, cyber security, compliance and regulatory matters, and other governance-related issues. We work with clients across diverse sectors, mitigating risk to assets, operations and people. M O R E T H A N 6 , 5 0 0 C L I E N T S 1 5 , 0 0 0 I N C L U D I N G ENGAGEMENTS O V E R PERFORMED IN 50% O F T H E 2017 S & P 5 0 0 T H E E U R O P E A N D A S I A 3,500+ AMERICAS MIDDLE EAST PACIFIC T O T A L 2 , 0 0 0 + 1000+ 500+ PROFESSIONALS PROFESSIONALS PROFESSIONALS PROFESSIONALS GLOBALLY BRIDGING THE DIVIDE WEBCAST 2 ONE COMPANY ACROSS 28 COUNTRIES WORLDWIDE E U R O P E A N D THE AMERICAS MIDDLE EAST ASIA PACIFIC Addison Grenada Princeton Abu Dhabi Dublin Munich Bangalore Melbourne Atlanta Houston Reston Agrate Brianza Frankfurt Padua Beijing Mumbai Austin Los Angeles St. Louis Amsterdam Lisbon Paris Brisbane New Delhi Bogota Mexico City San Francisco Athens London Pesaro Guangzhou Shanghai Boston Miami São Paulo Barcelona Longford Porto Hanoi Shenzhen Buenos Aires Milwaukee Seattle Berlin Luxembourg Rome Ho Chi Minh City Singapore Cayman Islands Minneapolis Secaucus Bilbao Madrid Tel Aviv* Hong Kong Sydney Chicago Morristown -
Treatment of Intangible Assets Under PGAAP
A PUBLIC POLICY PRACTICE NOTE Treatment of VOBA, Goodwill and Other Intangible Assets under PGAAP EXPOSURE DRAFT February 2014 American Academy of Actuaries Life Financial Reporting Committee A PUBLIC POLICY PRACTICE NOTE Treatment of VOBA, Goodwill and Other Intangible Assets under PGAAP April 1, 2014 Developed by the Life Financial Reporting Committee of the American Academy of Actuaries The American Academy of Actuaries is an 18,000-member professional association whose mission is to serve the public and the U.S. actuarial profession. The Academy assists public policymakers on all levels by providing leadership, objective expertise, and actuarial advice on risk and financial security issues. The Academy also sets qualification, practice, and professionalism standards for actuaries in the United States. TREATMENT OF VOBA, GOODWILL AND OTHER INTANGIBLE ASSETS UNDER PGAAP This practice note is not a promulgation of the Actuarial Standards Board, is not an actuarial standard of practice, is not binding upon any actuary and is not a definitive statement as to what constitutes generally accepted practice in the area under discussion. Events occurring subsequent to this publication of the practice note may make the practices described in this practice note irrelevant or obsolete. The authors of this practice note are not accountants or tax experts. The reader should consult professionals with expertise in these areas. This practice note was prepared by the Life Financial Reporting Committee of the American Academy of Actuaries. Please address -
IFRS Overview 2019
IFRS overview 2019 Contents Introduction 4 Accounting rules and principles 5 Accounting principles and applicability of IFRS 6 First-time adoption of IFRS – IFRS 1 7 Presentation of financial statements – IAS 1 8 Accounting policies, accounting estimates and errors – IAS 8 10 Fair value – IFRS 13 11 Financial instruments 12 Foreign currencies – IAS 21, IAS 29 16 Insurance contracts – IFRS 4, IFRS 17 18 Revenue and construction contracts –IFRS 15 and IAS 20 19 Segment reporting – IFRS 8 23 Employee benefits – IAS 19 24 Share-based payment – IFRS 2 26 Taxation – IAS 12, IFRIC 23 27 Earnings per share – IAS 33 28 Balance sheet and related notes 29 Intangible assets – IAS 38 30 Property, plant and equipment – IAS 16 31 Investment property – IAS 40 32 Impairment of assets – IAS 36 33 Lease accounting – IAS 17, IFRS 16 34 Inventories – IAS 2 35 Provisions and contingencies – IAS 37 36 Events after the reporting period and financial commitments – IAS 10 38 Share capital and reserves 39 Consolidated and separate financial statements 40 Consolidated financial statements – IFRS 10 41 Separate financial statements – IAS 27 42 Business combinations – IFRS 3 43 Disposal of subsidiaries, businesses and non-current assets – IFRS 5 44 Equity accounting – IAS 28 45 Joint arrangements – IFRS 11 46 Other subjects 47 Related-party disclosures – IAS 24 48 2 PwC | IFRS overview 2019 Cash flow statements – IAS 7 49 Interim financial reporting – IAS 34 50 Service concession arrangements – SIC 29 and IFRIC 12 51 Industry-specific topics 52 Agriculture – IAS 41 53 Extractive industries – IFRS 6 and IFRIC 20 54 Index by standard and interpretation 55 3 PwC | IFRS overview 2019 Introduction This ‘IFRS overview’ provides a summary of the recognition and measurement requirements of International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) up to October 2018. -
Learn Debits and Credits
LEARN DEBITS AND CREDITS Written by John Gillingham, CPA LEARN DEBITS AND CREDITS Copyright © 2015 by John Gillingham All rights reserved. This book or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the publisher except for the use of brief quotations in a book review. TABLE OF CONTENTS Introduction .................................................................................................... 6 More Resources .............................................................................................. 7 Accounting Play – Debits & Credits ......................................................... 7 Accounting Flashcards ............................................................................ 7 Free Lessons on Podcast and Downloads ................................................ 8 Intro to Debits and Credits .............................................................................. 9 Debits and Credits Accounting System .................................................... 9 The Double Entry System ........................................................................11 Different Account Types..........................................................................12 Debits and Credits Increases and Decreases ...................................................15 Increases and Decreases .........................................................................15 Debits and Credits by Account ................................................................16 -
Accounting Standards Update 2019-02
No. 2019-02 March 2019 Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment— Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350) Improvements to Accounting for Costs of Films and License Agreements for Program Materials a consensus of the FASB Emerging Issues Task Force An Amendment of the FASB Accounting Standards Codification® The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. An Accounting Standards Update is not authoritative; rather, it is a document that communicates how the Accounting Standards Codification is being amended. It also provides other information to help a user of GAAP understand how and why GAAP is changing and when the changes will be effective. For additional copies of this Accounting Standards Update and information on applicable prices and discount rates contact: Order Department Financial Accounting Standards Board 401 Merritt 7 PO Box 5116 Norwalk, CT 06856-5116 Please ask for our Product Code No. ASU2019-02. FINANCIAL ACCOUNTING SERIES (ISSN 0885-9051) is published monthly with the exception of February, March, May, and October by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116. Periodicals postage paid at Norwalk, CT and at additional mailing offices. The full subscription rate is $297 per year. POSTMASTER: Send address changes to Financial Accounting Series, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856- 5116. | No. 481 Copyright © 2019 by Financial Accounting Foundation. All rights reserved. Content copyrighted by Financial Accounting Foundation may not be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Financial Accounting Foundation. -
Amortization of Discounts on Certain Acquired Loans; Practice Bulletin, 06 American Institute of Certified Public Accountants
University of Mississippi eGrove American Institute of Certified Public Accountants Guides, Handbooks and Manuals (AICPA) Historical Collection 1-1-1989 Amortization of discounts on certain acquired loans; Practice bulletin, 06 American Institute of Certified Public Accountants. Accounting Standards Executive Committee;American Institute of Certified Public Accountants. Amortization of Discounts Task Force Follow this and additional works at: https://egrove.olemiss.edu/aicpa_guides Part of the Accounting Commons, and the Taxation Commons Recommended Citation American Institute of Certified Public Accountants. Accounting Standards Executive Committee;American Institute of Certified Public Accountants. Amortization of Discounts Task Force, "Amortization of discounts on certain acquired loans; Practice bulletin, 06" (1989). Guides, Handbooks and Manuals. 193. https://egrove.olemiss.edu/aicpa_guides/193 This Article is brought to you for free and open access by the American Institute of Certified Public Accountants (AICPA) Historical Collection at eGrove. It has been accepted for inclusion in Guides, Handbooks and Manuals by an authorized administrator of eGrove. For more information, please contact [email protected]. Practice Bulletin August 1989 6 Amortization of Discounts on Certain Acquired Loans Accounting Standards Executive Committee and Amortization of Discounts Task Force AICPA______________________________ ___ American Institute of Certified Public Accountants NOTICE TO READERS Practice bulletins of the Accounting Standards Division -
A Roadmap to the Preparation of the Statement of Cash Flows
A Roadmap to the Preparation of the Statement of Cash Flows May 2020 The FASB Accounting Standards Codification® material is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, and is reproduced with permission. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. The services described herein are illustrative in nature and are intended to demonstrate our experience and capabilities in these areas; however, due to independence restrictions that may apply to audit clients (including affiliates) of Deloitte & Touche LLP, we may be unable to provide certain services based on individual facts and circumstances. As used in this document, “Deloitte” means Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Tax LLP, and Deloitte Financial Advisory Services LLP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Copyright © 2020 Deloitte Development LLC. All rights reserved. Publications in Deloitte’s Roadmap Series Business Combinations Business Combinations — SEC Reporting Considerations Carve-Out Transactions Comparing IFRS Standards and U.S. -
2020 Instructions for Form 4562
Userid: CPM Schema: Leadpct: 100% Pt. size: 9.5 Draft Ok to Print instrx AH XSL/XML Fileid: … ions/I4562/2020/A/XML/Cycle07/source (Init. & Date) _______ Page 1 of 21 9:19 - 21-Jan-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Department of the Treasury 2020 Internal Revenue Service Instructions for Form 4562 Depreciation and Amortization (Including Information on Listed Property) Section references are to the Internal Revenue • A section 179 expense deduction Generally, you can depreciate: Code unless otherwise noted. (which may include a carryover from a • Tangible property such as buildings, previous year). machinery, vehicles, furniture, and Future Developments • Depreciation on any vehicle or other equipment; and For the latest information about listed property (regardless of when it • Intangible property such as patents, developments related to Form 4562 and was placed in service). copyrights, and computer software. its instructions, such as legislation A deduction for any vehicle reported • Exception. You cannot depreciate enacted after this form and instructions on a form other than Schedule C (Form land. were published, go to IRS.gov/ 1040), Profit or Loss From Business. Form4562. • Any depreciation on a corporate Accelerated Cost Recovery income tax return (other than Form System 1120-S). What's New The Accelerated Cost Recovery System Amortization of costs that begins • (ACRS) applies to property first used Section 179 deduction dollar limits. during the 2020 tax year. For tax years beginning in 2020, the before 1987. It is the name given for the maximum section 179 expense If you are an employee deducting tax rules that allow a taxpayer to recover deduction is $1,040,000 ($1,075,000 for job-related vehicle expenses using through depreciation deductions the qualified enterprise zone property). -
Intangible Asset Valuation
Intangible Asset Valuation Presented by Raymond D. Rath, ASA, CFA November 9, 2012 Wuhan, China Intangible Asset Valuation www.appraisers.org Table of Contents TOPIC PAGES • Introduction 2 - 3 • Overview – Growing Importance of Intangible Assets 4 - 21 • Identification of Intangible Assets 22 - 31 • Summary Information on Cost and Market Approaches 32 - 65 • Overview of the Income Approach 66 - 98 • Overview of Contributory Asset Charge Final Release 99 - 115 • Practical Expedient Example 116 - 126 Intangible Asset Valuation www.appraisers.org 1 Section 1: Overview – Growing Importance of Intangible Assets Intangible Asset Valuation www.appraisers.org Intangible Asset Valuation - Introduction • The following slides provide a high level overview of key concepts in the valuation of intangible assets. • The American Society of Appraisers (ASA) offers two intangible asset valuation courses that provide comprehensive instruction on these and many other topics in an interactive, collaborative environment. • BV 301, Valuation of Intangible Assets • BV 302, Special Topics in the Valuation of Intangible Assets • The International Institute of Business Valuers (IIBV) offers the following course which is substantially similar to the ASA course offering. • IIBV 301, Valuation of Intangible Assets Intangible Asset Valuation www.appraisers.org 3 Introduction - Intangible Asset vs. Business Valuation Analytical Variable Business Valuation Intangible Asset Valuation Income subject to analysis All operating income of Portion of operating income business -
Netsuite Advanced Financials Complement Netsuite with Budgeting, Expense Management and Flexible Billing Functionality
Data Sheet NetSuite Advanced Financials Complement NetSuite with Budgeting, Expense Management and Flexible Billing Functionality NetSuite Advanced Financials brings complementary financial management functionality to NetSuite BENEFITS including budgeting, expense allocations and amortization, as well as more flexible billing management. It helps ensure strong financial management by enabling the management and monitoring of budgets • Get clear real-time visibility into budgets versus actuals. With expense management capabilities, NetSuite Advanced Financials provides • Improve productivity with automated sophisticated expense allocations that make it simple to assign expenses based on typical weightings, expense allocation and amortization while amortization schedules enable expenses to be amortized over time with ease. • Spend less time on manual With NetSuite Advanced Financials, finance departments can further automate billing processes billing processes and eliminate the manual work typically associated with billing customers. It enables the creation of highly customized billing schedules and templates, and automates the creation of invoices based on different types of orders. It even provides milestone billing schedules that ensure work is billed as it is completed according to a service contract. Budget Management and Reporting KEY CAPABILITIES • NetSuite Advanced Financials makes it easy to track and manage budgets. • Simply enter budgets for accounts on a single screen, or use the Copy Budgets feature to rapidly • Supports management of create an entire budget based on another budget, or on actuals together with an uplift/downlift. multiple budgets Alternatively, create budgets in Excel and import them via CSV. • Enables monitoring of budget versus actual in real time • The Multiple Budgets feature allows you to set up and report on more than one budget for the • Allocate expenses by GL account, class, same set of criteria, such as typical budget or a conservative budget scenario.