How does the method of accounting for a business combination affects whether goodwill is reported. and If goodwill is recorded, explain how to determine the amount of goodwill.
2007-01-24 00:14:41 · 4 answers · asked by Munch_101 1 in Business & Finance ➔ Other - Business & Finance
On the balance sheet of a financial statement, the total assets of the business equals the total of the liabilities plus capital.
So simply, if you have a business with $50,000 of assets but because of profitability or market share I purchased your business for $75,000 the difference between the asset value and the purchase price would be considered "goodwill". In this example, $25,000.
2007-01-24 00:24:09 · answer #1 · answered by bnkr27 2 · 0⤊ 0⤋
First the GAAP in USA no longer allows the pooling of interest for business combinations, only the purchase method is allowed.
Whenever the purchase price exceeds the fair market value of all the assets of the business purchased, the assets are consolidated at the fair market value and the excess over this value is attributed to goodwill.
2007-01-30 16:06:00 · answer #2 · answered by cyahlaytar 2 · 0⤊ 0⤋
To answer this question you may have to refer text books. Goodwill is an intangible asset, valuation of which is done different methods.Better you may have to go to detailed workings given in texts to find a method suited to your company or industry.
2007-01-24 00:26:01 · answer #3 · answered by Brahmanyan 5 · 0⤊ 1⤋
once you attain the age of majority on your state (18 for plenty of the U. S.). Your mom is incorrect. in case you are able to legally enter right into a settlement, you are able to legally manage your guy or woman factors. remember, although, that there could be some minor modifications or variations in the experience that your money is held in a believe or no count if it extremely is per baby help which could be paid till a undeniable age.
2016-12-16 12:21:04 · answer #4 · answered by moncalieri 4 · 0⤊ 0⤋