1. How are income and balance sheet values determined under the equity method?

 

2. Discuss accounting for equity securities under the cost method.

 

3. What is the fair value option as defined in FASB ASC 825‐10‐10?

 

4. ASU 2016-01 attempted to simplify the impairment model for equity securities for which an entity has elected the practicability exception by eliminating the requirement to assess whether an impairment of such an investment is other than temporary. What are the factors to be considered in making this assessment and how is an impairment recorded?

 

5. What is an intangible asset? How is the cost of an intangible asset amortized?

 

6. What factors should be considered in estimating the useful life of an intangible asset?

 

7. Discuss the accounting treatment for internally developed versus externally purchased intangible assets.

 

8. What is goodwill? How is the recorded value of goodwill determined? How is goodwill written off under the provisions of SFAS No. 142 now FASB ASC 350?

 

9. Define research and development. How are research and development costs recorded?

Answer rating: 100% (QA)

Income and Balance Sheet Values under the Equity Method Under the equity method an investor accounts for its investment in another company as an equity security The investor recognizes its share of th... View the full answer