Problem: Goodwill and Other Intangible Assets, represents a significant expansion of business valuation into the financial reporting framework. It is currently implemented in conjunction with FAS No. 141: Business Combinations. Finance and accounting professionals in reporting and non-reporting companies that adopt SFAF No. 142 must understand many of the principles, methods, and techniques of business valuation.
REQUIRED:
(1) What are the points of examination of how the economic consequences have influenced the shaping of SFAS No. 141 and 142.
(2) What are the points of examination of how the two basic requirements for accrual of a loss contingency relate to the concepts of periodicity, measurement, objectivity, and relevance hide problem