What fasb covers the reporting and accounting of goodwill


Homework: Financial Statements Consolidation

The purpose of this Key Homework is to get familiar with annual reports and to understand the financial implications of the following:

1. Equity method of accounting versus consolidation
2. Reporting of investments based on cost/equity
3. Goodwill reporting
4. Intercompany and intracompany transactions

Access the company's Web page on the Internet to read its most recent annual report. The annual report is typically found in an "Investor Relations" or "Company Information" section within the company's Web site. If the company does not provide a full annual report, select another company for your project. Verify that the full annual report includes the following:

1. A letter or report to shareholders from the president of the company
2. A section providing management's discussion and analysis of the business
3. A report from the auditor
4. The company's financial statements
5. Supplemental notes to the financial statements

Once you have found a full annual report, complete each part of the homework.

Cover all of the items listed in the questions below. You can select more than 1 company if your chosen company does not have all the items listed below.

Using the financial statements of your company (or companies), write a 1,000-1,500 word paper that addresses the following questions:

1. What GAAP principles govern the consolidation of financial statements?

• How are consolidated and equity methods of accounting different?

2. What investments has the company made in affiliated companies? Examine its footnotes.

• Comment on the accounting for investments in affiliated companies after looking at the footnotes.
• List the investments it has.
• Does it use cost basis or equity method of accounting, or both?
• When do you use the equity method of accounting?

3. Goodwill is the difference between the acquired assets and acquired liabilities.

• (Find a company that has goodwill). Examine the balance sheet and the footnotes. What is the goodwill related to?
• What FASB covers the reporting and accounting of goodwill?
• What is the difference between old goodwill reporting and new goodwill reporting?

Format your homework according to the give formatting requirements:

• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.

• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.

• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: What fasb covers the reporting and accounting of goodwill
Reference No:- TGS03064648

Now Priced at $80 (50% Discount)

Recommended (96%)

Rated (4.8/5)