Part 1. (60 points)
In this section, responses can be numbered to correspond with the questions presented.
a) Your employer (a private company) is concerned about the amount of goodwill reported on the company’s consolidated financial statement. Where in the Codification can your employer find guidance about measuring/reporting goodwill for a private? NOTE: You are not required to explain the guideline, only identify where the information may be found, example: ASC 954-320-55
b) In section 810 of the Codification guidelines for Consolidations are discussed. Read the following 810-10-45-11. In your own words, explain what this means.
c) An investor argues that a Bargain generated from an acquisition should be recognized in the same manner as goodwill. Using the Codification, how can you refute the statement? Support your response with a specific reference to the appropriate section of the Codification:Reference example: ASC 954-320-55
d) A classmate argues that failing to culminate an acquisition that has already begun is considered a Reverse Acquisition. Do you agree that this is the appropriate interpretation of a Reverse Acquisition? Why or why not? Support your response/discussion with an appropriate reference from the Codification.
Access to the Codification:
aaahq.org/asclogin.cfm
Username: AAA51918
Password: xT5G4fQ
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Part 2.(90 points)
In this section, the response should be a cohesive discussion, i.e. an essay. Use APA formatting,
How has the globalization of the economy and/or accounting impacted mergers and acquisitions?
How do differences in culture, social values, political systems, technology and economic systems impact mergers/acquisitions in this global environmental?
NOTE: Support your discussion with reputable sources (at least three). You should format and order your discussion in a logical and coherent manner, including an introduction and conclusion.
Read all of the following carefully.
Your responses must demonstrate graduate level knowledge and communication skills. All responses must be well discussed, logical and well supported. Review the Writing Expectations information on the following pages.
On each page, include a header with your CWID # and a page number.
A title page is required. Include the following information on your title page: CWID #,NO name, Semester, Year, and Course name.
Format. Format the paper using a standard font: Times New Roman, Courier, or Arial; a standard font size: 10, 11 or 12; indent each new paragraph; double space; and a one-inch margin on all sides. Use the page break feature and include a reference page, where applicable.
Writing Expectations
When I read your submission, I make sure that:
· Each sentence is complete
· Each sentence makes sense, i.e. subject verb agreement,
· Each paragraph makes sense, i.e. the paragraph does not contain random sentences that are disconnected
· Each paragraph communicates a specific message
· Paragraphs in each section are related to the theme of the section
· There are transitions between paragraphs
The goal of writing is to communicate a message. Make sure that your writing communicates the message that you want to convey.
Thesamplesbelow demonstrate the difference in expectations among different levels of students.
Sample question: What is revenue?
Sample answers:
Answer from a high school student:Revenue is defined as the “inflows of assets or settlements of liabilities from delivering or producing goods, rendering services, or other activities that constitute the entity’s ongoing major or central operations”.
Notes: This student is only able to recall and regurgitate information. No substantive information is provided beyond what was discussed in the text. The student demonstrates the ability to remember, repeat and recall information. The student simply copied the definition from the text, as indicated by the quotes.
Answer from an undergraduate student:Revenue is generated when a company sells its products or services to its customers.There are various sources of revenue: Sales revenue, dividend revenue, interest revenue, etc. For most companies sales revenue is the primary source of revenue earned.
Notes: This student is able comprehend information. The student provided a response that contains some depth and a demonstration of some knowledge. The student recognizes that there are different classifications/categories of revenue. The student also identifies the significance of revenue to the organization.
Answer from a graduate student:Financial accounting has five (5) broad categories of accounts (assets, liabilities, equity, revenue and expenses) revenue is among those categories. Revenue is reported and recognized on the Income Statement. Under the accrual basis of accounting revenue is recognized when it is earned, which may not coincide with the receipt of cash. However the collectability of the cash should be reasonably certain. Many companies derive revenue from various sources: Sales revenue, dividend revenue, interest revenue, etc. For most companies however sales revenue is the primary source from which income is generated. Although the FASB has numerous pronouncements related to revenue recognition, restatements of financial information is most often a result of erroneously reported revenue.
Notes: This student is able to demonstrate an ability to analyze as well as evaluate information. The student has incorporated information gleaned from various sources to provide a more comprehensive view of revenue and its role in an organization and its impact on the profession. The student is providing a broader perspective of revenue, not just a memorized response. The response demonstrates thoughtfulness.
