Intangible assets are those assets that are not physical assets.These include patents, non compete agreements, and goodwill.How is goodwill recorded in the financial statements?What are the requirements of evaluating goodwill?

Chapter 10 discusses issues with property, plant, and equipment or fixed assets.These are depreciable assets that help a company produce revenue.Some companies require more fixed assets than others.Companies may issue equity or debt to purchase the needed assets.We will discuss the pros and cons of issuing debt and equity in a future chapter.However, for this chapter, what affects can fixed assets have on cash flow?

Inventory may being valued using last in first out (LIFO), first in first out (FIFO), average cost method or any combination of the three.IFRS does not allow for the use of LIFO.However, LIFO is widely used in the United States because of the tax benefits it offers.Some will also argue that LIFO better matches cost of goods sold to revenue since the cost being used is the most recent.However, the counter argument is inventory may be under reported.There has been talk over the years of repealing the use of LIFO for tax purposes.Do you think LIFO should be allowed for financial reporting?Be sure to support your answer.