9. Immediate write-off of goodwill] On October 11. 2000. China Mobile [941] announced that it would write off HKS242 billion of goodwill resulting from the acquisition of seven wire- less networks. The total purchase price of the acquisitions was HK$256 billion.

a. Compare the impact of the immediate write-off of goodwill with the treatment under both U.S. GAAP and IASB GAAP. Your answer should include the impact on each of the follow- ing in the periods following the acquisitions. (i) Shareholders' equity (ii) Asset turnover (iii) Return on equity (iv) Earnings per share (v) Cash from operations

b. Based on your answers to part

a, discuss the advantages of immediate write-off from the perspective of China Mobile

c. Describe the adjustments to China Mobile's financial state- ments that you would make when comparing the company with another firm that uses (i) U.S. GAAP (ii) IASB GAAP