ACCT 1B Lecture Notes - Lecture 26: Pro Forma, Financial Statement, Indirect Costs

• School: Irvine Valley College
• Department: Accounting
• Course: ACCT 1B
• Professor: seilo

Document Summary

Other intangible assets acquired intangibles other than goodwill should be amortized over useful lives and reviewed for impairment in accordance with asc 350. If intangible other than gw has indefinite life it should not be amortized until its life is determined to be finite. Instead it should be tested annually for impairment. Treatment of acquisition expenses under acquisition accounting (asc 805): Direct expenses directly incurred in the combination including finder"s fees, legal, accounting and consulting fees. This is a change in accounting as direct expenses were previously capitalized. Indirect expenses ongoing costs such as those incurred to maintain a mergers and acquisitions department. These expenses are charged to expense as incurred. Indirect costs also include managerial or secretarial time and oh allocated to the merger. Security issuance costs are assigned to the valuation of the security by reducing other contributed capital or adjusting premium/discount on bond issues.