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How to Calculate Goodwill under IFRS and GAAP - Assignment Example

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As the paper "How to Calculate Goodwill under IFRS and GAAP?" tells, Goodwill represents the prudent value that companies have beyond their assets. It can be a way of a solid customer base and a good reputation. It shows the value of an organization, firm, or institution in terms of reputation. …

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How to Calculate Goodwill under IFRS and GAAP

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Subject: Finance & Accounting
Type: Assignment
Level: Ph.D.
Pages: 1 (250 words)
Downloads: 2
Author: ernestinegaylor

Extract of sample "How to Calculate Goodwill under IFRS and GAAP"

The total of fair values includes liabilities assumed and recognized intangible assets. When the amount of goodwill is negative, that is when the purchase consideration is less than the total fair value of acquired assets, the excess is said to be profit (Deloitte 2014).

How to calculate Goodwill under GAAP

It is done in a two-step process:

The firm calculates the fair value of a reporting unit. It compares the fair value with the carrying amount of the unit. When the carrying amount is more than the fair value, the firm proceeds to the second step (Brice 2014).
The firm measures goodwill impairment. It is done through a comparison of the implied fair value against the carrying amount of goodwill (Tilly 2011).

Impact of new healthcare on insurance accounting

Accountants who perform personal tax returns are the de facto first line in the implementation of the individual mandate. Insurance accountants will question clients if they possess health insurance. The accountants calculate fines for clients who lack insurance as per the law. The new healthcare puts insurance accountants in political conversations that did not exist before. It requires them to remain privy regarding their client's compliance with the law (White 2014).

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