BlackBerry, the manufacturer of BlackBerry smartphones, recently reported in the statement of cash flows and notes to

Question:

BlackBerry, the manufacturer of BlackBerry smartphones, recently reported in the statement of cash flows and notes to the financial statements in its annual report that it had made acquisitions of USD $6.2 million. Assume the balance sheet reported an increase in goodwill for the year in the amount of USD $4.5 million.

Requirements

1. What is the definition of goodwill?

2. Explain the meaning of (a) the $6.2 million that BlackBerry reported on the statement of cash flows and (b) the $4.5 million increase in goodwill on the balance sheet.

3. BlackBerry's income statement and statement of cash flows do not show any charges for amortization of goodwill during the year. Explain the reason for the lack of charges.

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...