BU547 Lecture Notes - Lecture 16: Acne Vulgaris, Financial Statement, Norwegian School Of Economics
Document Summary
Analysis report: natural health haven (nhh) business venture. In order to determine the reasonableness of the offer from kareem for the purchase of nhh, we need to conduct a valuation on nhh. Thus, we need to ensure that the financial statements are prepared in accordance to aspe before we begin valuation analysis. Nhh has capitalized the research and development costs (,000) incurred through the development of a new botanical supplement. The issue is whether this cost is eligible for capitalization under aspe. Aspe section 3064 should be consulted to analyze issue. The supplement (intangible asset) can not be recognized at this point as section 3064. 41 has not been satisfied. The capitalized ,000 should be reversed and expensed. As a result, net income and nhh"s value would both decrease by the same amount. A customer has sued nhh for ,000, in which nhh has expensed the amount in the financial statements.
