The initial measurement of goodwill is most likely affected by: A. an acquisitions purchase price. B. the

Question:

The initial measurement of goodwill is most likely affected by:

A. an acquisition’s purchase price.

B. the acquired company’s book value.

C. the fair value of the acquirer’s assets and liabilities.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

International Financial Statement Analysis CFA Institute Investment Series

ISBN: 9780470287668

1st Edition

Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie

See More Books

Question Posted: Feb 14, 2024 09:00 AM

See More Questions

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
During 2021, CATHY Company acquired a plot of land for P450,000. In addition, to acquire the land, CATHY Company paid a P30,000 commission to a real estate agent. P75,000 were incurred to clear the...
1. Evaluate whether the following statements are true or false in relation to cash and cash equivalents: I. Demand Deposits forms part as cash just like savings and time deposit. II. Stale checks...
A manufacturer of packaging for companies that produce breakfast cereals is considering alternatives regarding the process it uses to pre-process carton paper used to make the packaging....
Ethical Beliefs What Do you believe? It is important to first establish your own ethical code. What do you believe about practices related to ethical use of technology? Write an analysis of your own...
Consider a one-period, finite-state economy where an individual has utility from the consumption of two goods. The consumption of the first good is denoted by c, and the consumption of the second...
Suppose there is a single asset that is risk free with return Rf > 1. Consider an investor with an infinite horizon, utility function u (c) = c, and discount factor = 1/Rf . Suppose she is...
The steps in the accounting cycle are listed in random order. Fill in the blank next to each step to indicate its order in the cycle. The first step in the cycle is filled in as an example. Order...
Which od the follow is not a limitation of internal control policies and procedures ?
Defining total asset turnover as revenue divided by average total assets, all else equal, impairment write-downs of long-lived assets owned by a company will most likely result in an increase for...
Accrued expenses (accrued liabilities) are: A. expenses that have been paid. B. created when another liability is reduced. C. expenses that have been reported on the income statement but not yet paid.
The following graph shows a simple social network. Which person likes the most people in the network? Person 1 Person 3 Person 2 Person 4
1. A concise introduction of the brand, including but not limited to a brief history, location information, size of the business, product/service offering, and so on.Give brief explanation. 2. Which...
A wood frame structure as shown to the right. The framingconsists of 2x6 studs, a single 2x6 bottom plate, two 2x6 topplates and a 2x10 joist. The studs are spaced at 16 in. on centerand sheathed...
In your reflection journal please list your order - 'most efficient' mediums at the top, 'least efficient' at the bottom. (for eg. social media, display ads, etc)Then, in five hundred words or more,...
Energy prices and global warming are discussed daily in the news as environmental impact of e-waste is just beginning to be recognized. Sustainability and corporate social responsibility need to be...
3. A Channel section is connected to a 10mm gusset plate with 20mm- diameter bolts as shown in the figure. The connecting member is subjected to dead load and live load only. The pitch distance,...
If X and Y have joint density fX,Y (x, y) = 75xe-5x-3y, for 0 < x, 0 < y and fX,Y(x,y) = 0 otherwise: a. Are X and Y independent? b. Find P(X < Y).
Which property determines whether a control is available to the user during run time? a. Available b. Enabled c. Unavailable d. Disabled
What kinds of businesses are most likely to benefit from wearable computers? Select a business and describe how a wearable computing device could help that business improve operations or decision...
What business benefits do cloud computing services provide? What problems do they solve?
What are the disadvantages of cloud computing ?
Jenny wanted to donate to her alma mater to set up a fund for student scholarships. If she would like to fund an annual scholarship in the amount of $6,000 and her donation can earn 5% interest per...
You would like to have a balance of $600,000 at the end of 15 years from monthly savings of $900. If your returns are compounded monthly, what is the APR you need to meet your goal?
Explain the importance of covariance and correlation between assets and understanding the expected value, variance, and standard deviation of a random variable and of returns on a portfolio.

The initial measurement of goodwill is most likely affected by: A. an acquisitions purchase price. B. the

Question:

Step by Step Answer:

Goodwill is a category of assets in business that represents the premium that a company pays when it ...View the full answer

International Financial Statement Analysis CFA Institute Investment Series

Students also viewed these Business questions