BAD 63022 Professional Issues in Accounting October 28th Assignment
Fall, 2002
Business Combinations (SFAS# 141) Long-Lived Asset Issues—Goodwill & Other Intangibles (SFAS# 142); Asset Retirement Obligations (SFAS#143); Impairment or Disposal (SFAS# 144) References on 2-Hour Reserve at KSU Main Library Miller GAAP Guide, Martin A. Miller & Jan Williams FASB Concept Statements FASB Volume 1 Original Statements: Statements of Federal Financial Accounting Concepts & Standards Microfiche Reference for FASB Statements of Financial Accounting Concepts and Standards (SFAS# 141-144) Recognition in Financial Statements: Underlying Concepts and Practical Conventions, L. Todd Johnson & Reed K. Storey Check this reference for any relevant material Accounting Theory, 5th Ed., Hendriksen & Van Breda Chapter 23, pp. 822-9 Business Combinations Chapter 18, pp. 638-648 Goodwill Accounting Theory, 2nd Ed., Vernon Kam Chapter 12 Business Combinations Chapter 13, pp. 401-9 Goodwill HF5616.U5 M5 1999
Micro-4 GA 1.13: AIMD-21.1.1
HF5681.B2 J627x 1982
HF5625.H45 1992
HF5625.K265 1990
Accounting Theory: Text & Readings, 6th Ed., Schroeder & Clark Personal Copy Chapter 9 and Article 2 (Colley & Volkan) Chapter 15 and Article 1 (Spero & Kreiser) & Article 2 (Clark) Accounting Theory: Text & Readings, 4th Ed., Schroeder, Clark McCullers Chapter 7 and Article 2 (Colley & Volkan) Chapter 13 and Article 1 (Dewhirst) Issues in Accounting Policy: A Reader, Bloom & Elgers Section I-E, Article 1 (Pacter), Article 2 (Rosenfield & Rubin) & Article 4 (Davis) Foundations of Accounting Theory & Policy: A Reader, Bloom & Elgers Section II-D, Article 5 (Lowe) HF5629.A26 1987
Personal Copy
Personal Copy
Accounting Theory: A Conceptual & Institutional Approach, Personal Copy th 5 Ed., Wolk, Tearney & Dodd Chapter 18, pp. 683-691 Business Combinations Chapter 10, pp. 335-351 Assets (check for relevant material) Accounting Theory: Contemporary Accounting Issues, Evans Chapter 10 Assets (check for relevant material) Personal Copy
Accounting Theory, 3rd Ed., Belkaoui HF5616.R48x 1993 Chapter 13 Section on Assets (Check for relevant material)
References for Articles Included in Lists Above—Search for These in Appropriate Journals Colley, J. Ron & Volkan, Ara Spero, Abba & Kreiser, Larry Clark, Myrtle Accounting for Goodwill, Accounting Horizons, March, 1988 Pooling: Going…Going…Gone?, Ohio CPA Journal, Feb., 1997
Evolution of Concepts of Minority Interest, Accounting Horizons, June, 1993 Consolidations: An Overview of the FASB DM, Journal of Accountancy, 1992 Minority Interest: Opposing Views, Journal of Accountancy, March, 1986 APB 16: Time to Reconsider, Journal of Accountancy, 1991 Shortcomings of Japanese Consolidated Financial Statements, Accounting Horizons, Sept., 1990
Pacter, Paul
Rosenfield, Paul & Davis, Michael Lowe, Howard
References for Other Articles—Search for These in Appropriate Journals Davis, Michael Goodwill Accounting: Time for an Overhaul, Journal of Accountancy, June, 1992 Capital Markets Research and the Goodwill Debate, Accounting Review, June, 1995 Brands on the Balance Sheet, Marketing Management, Winter, 1992
Clinch, Greg
Farquhar, Peter & Han, Julia & Ijiri, Yuji
DeMark, Eugene
What You Need to Know about New FASB Pronouncements That Target Business Combinations and Goodwill, CPA Journal, Feb., 2002 Amortisation of Goodwill, Accountancy, April, 2002 Impairment Calculations, Accountancy, April, 2002
Siegel, Jay
The Good (will), the Bad and the Ugly, National Public Accountant, Feb/Mar 2002 Goodwill’s Elimination is Not a Windfall, Analysts Warn, Investor Relation Business, Jan. 28, 2002
Weil, Jonathan & Young, Shawn
Suspense Accounting: After AOL, Who Will Take a Goodwill Hit?, Wall Street Journal, Eastern Edition, Jan. 11, 2002 AOL Kills Goodwill Games after $150 Million in Losses, Wall Street Journal, Eastern Edition, Dec. 21, 2001
Ong, Audra
Changes in Brand Accounting for UK Companies, Journal of Brand Management, Nov., 2001 Goodwill Convergence, CPA Journal, Oct., 2001
Waxman, Robert
Lewis, Eric & Users’ Comments on SFAS 141 and 142 on Business Combinations and Lippitt, Jeffrey & Goodwill, CPA Journal, Oct., 2001 Mastracchio, Nicholas FASB Changes the Treatment of Goodwill in Mergers, Corporate Board, Sep/Oct 2001 Jennings, Ross & Goodwill Amortization and the Usefulness of Earnings, Financial LeClere, Marc & Analysts Journal, Sep/Oct 2001 Thompson, Robert Moehrle, Stephen & Say Good-bye to Pooling and Goodwill Amortization, Journal of Reynolds-Moehrle, Accountancy, Sept, 2001 Jennifer Zucca, Linda & Campbell, David Alexander, Eric & Hiner, Ronald A Closer Look at Discretionary Writedowns of Impaired Assets, Accounting Horizons, Sept., 1992 Accounting for Asset Retirement Obligations, Journal of Accountancy, Dec., 2001
Titard, Pierre & Pariser, David
Impaired Assets: Meeting Users’ Information Needs, Journal of Accountancy, Dec., 1996 FASB ED Aims to Standardize Long-Lived Asset Accounting, Journal of Accountancy, April, 1996 FASB Issues Proposal on Long-Lived Asset Impairment, Journal of Accountancy, Feb., 1994 Recognition and Measurement of Impairment Losses, Management Accounting, Sept., 1998
Tollington, Tony
When Is an Asset Not an Asset?, Management Accounting, June, 1997
Moehrle, Stephen & How Informative Are Earnings Numbers That Exclude Goodwill Reynolds-Moehrle, Amortization?, Accounting Horizons, Sept., 2001 Jennifer & Wallace, James Herz, Robert & Others Beresford, Dennis Equity Valuation Models and Measuring Goodwill Impairment, Accounting Horizons, June, 2001 Congress Looks at Accounting for Business Combinations, Accounting Horizons, March, 2001
Ayers, Benjamin & The Financial Statement Effects of Eliminating the Pooling-of-Interests Lefanowicz, Craig Method of Acquisition Accounting, Accounting Horizons, March, 2000 & Robinson, John King, Alfred & Kelly, Neil Jordan, Charles & Clark, Stanley Clark, Stanley & Jordan, Charles Clark, Stanley & Jordan, Charles Piergallini, Paul Meeting, David & Luecke, Randall Merger Accounting Magic May Disappear, Strategic Finance, Jan., 2000
Reporting Asset Retirement Obligations under SFAS 143, Ohio CPA Journal, Oct-Dec, 2001 Accounting for Asset Impairments under SFAS 121, Ohio CPA Journal, Feb, 1996 Accounting for Impairments of Long-Lived Assets: The FASB’s Proposed Guidelines, Ohio CPA Journal, Oct., 1994 Going, Going, Gone?, Journal of Accountancy, March, 2002 Asset Impairment and Disposal, Journal of Accountancy, March, 2002
Mercer, Z. Chris. & Goodwill Valuation under SFAS 142, CPA Journal, Feb., 2002 Crow, Matthew & Patton, Kenneth Cocco, Anthony & Moores, Tommy Munter, Paul Accounting for the Impairment of Long-Lived Assets, CPA Journal, Oct., 1995 SFAS No. 121 and Impairment of Assets, CPA Journal, Oct., 1995
Topics/Issues/Questions for Consideration Business Combinations and Goodwill Distinguish between the purchase and pooling-of-interests methods of accounting for business Combinations. Arguments for and against the purchase method Arguments for and against the pooling method Why did the FASB issue SFAS# 141 which eliminates the pooling method? Is the pooling method used in other countries? Is it allowed under International Accounting Standards? How should the difference between fair value and cost of an investment in another entity be allocated under SFAS# 141? Explain the methods of accounting for goodwill under U.S. GAAP: (1) prior to SFAS# 141 and (2) under SFAS# 141 & 142. What methods are used to account for goodwill in other countries and under International Accounting Standards? How is SFAS# 141 related to the Conceptual Framework of Accounting? How does SFAS# 141 improve financial reporting in the U.S.? What are the reactions of users, preparers, and accounting practitioners to SFAS# 141 & 142? What problems are perceived regarding (1) the allocation of the excess of fair value over cost to specific assets and goodwill and (2) the measurement of impairment losses under SFAS#141 and 142?
Long-Lived Asset Issues Explain the methods of accounting for intangible assets under U.S. GAAP (1) prior to SFAS# 141 and (2) under SFAS# 142. What methods are used to account for intangible assets in other countries and under international accounting standards? Why did the FASB issue SFAS# 142? How is this statement related to the Conceptual Framework of Accounting? How does this statement improve financial reporting? What issue are the issues underlying the accounting for brands? What are the issues underlying the accounting for (1) impairment of assets and (2) retirement of assets? Why did the FASB issue SFAS# 143? How does this standard change prior accounting and financial reporting practice? How are the conclusions of this statement related to the Conceptual Framework of Accounting? How do the changes in this statement improve financial reporting? Why did the FASB issue SFAS# 144? How does this standard change prior accounting and financial reporting practice? How are the conclusions of this statement related to the Conceptual Framework of Accounting? How do the changes in this statement improve financial reporting?