ADMS 4520 Chapter Notes - Chapter 4: Capital Asset, Disclose, Cash Flow Statement

• School: York University
• Department: Administrative Studies
• Course: ADMS 4520
• Professor: Patricia Farrell

Document Summary

& depreciation (except goodwill: asset included in purchase transaction may been sold/retired at some time, assumptions. P. 149: amortize asset & fv increment together = consolidated. Intangible capital assets amortization: recognize intangible if purchased/capitalizable cost incurred, acquirer identify intangibles not reported on acquire assign fv to identified intangible, carried on consolidated sfp cost less accumulated amortization, rules. I(cid:374)ta(cid:374)gi(cid:271)le"s life is i(cid:374)defi(cid:374)ite not amortized / but test impairment. If (cid:396)epo(cid:396)ted o(cid:374) su(cid:271)sidia(cid:396)y"s fp fva accounted same way. If not reported on subsidiary useful life must be determined: life not indefinite fva amortized over useful life. Impairment test cgu compare recoverable amount & carrying value: unrealized profits, downstream sales parent to subsidiary, upstream sales subsidiary to parent, consolidated statements show result of transaction between consolidated entity. & outside combined entity: purchasel has 20000 in inventory from targetl (who has 40% gross margin, 20000 * 0. 4 = 8000 upstream sales unrealized eliminate in consol.