What is SFAS 141 R?
141, Business Combinations. FAS 141(R) is the result of a joint project between FASB and the International Accounting Standards Board to create convergence between U.S. and international financial reporting standards for purchase accounting.
What is FAS tax?
FAS 109 Summary This Statement establishes financial accounting and reporting standards for the effects of income taxes that result from an enterprise’s activities during the current and preceding years. It requires an asset and liability approach for financial accounting and reporting for income taxes.
Are lease commissions intangible assets?
“In-place” leases: An intangible asset that represents the economic benefit associated with the building being leased to others would be recognized because the acquirer would avoid costs necessary to obtain a lease (e.g., sales commissions, legal, or other lease incentive costs).
Has FAS 5 been superseded?
5: Accounting for Contingencies (FAS 5), the original FASB pronouncement, superseded by the substantively same FASB Accounting Standards Codification (ASC) subtopic 450 -20, Contingencies: Loss Contingencies, is a principal source of guidance on accounting for impairment in a loan portfolio under GAAP.
What are examples of intangible assets?
Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets.
What is SFAS 109?
The Statement of Financial Accounting Standards (SFAS) 109, Accounting for Income Taxes, serves as the bridge between financial and income tax accounting. With numerous tax laws and their almost continuous revisions and updates, calculating and reporting an annual income tax provision has never been more challenging.
What was SFAS No 109?
Under SFAS No. 109, firms separately disclose deferred tax assets and deferred tax liabilities, and establish a valuation allowance to reduce deferred tax assets when the full amount is not expected to be realized.
What is SFAS 141 and SFAS 142?
Finally, on June 29, 2001, the FASB issued SFAS 141, Business Combinations, which eliminated pooling-of-interests, and SFAS 142, Goodwill and Intangible Assets ( Financial Accounting Standards Board, 2001b ), which mandated the new impairment-only regime for goodwill, with some modifications to the impairment testing method.
What are statements 141 and 142?
Statements 141 and 142 have been subject to much debate and controversy. For example, Watts (2003) asserts that “SFAS 142 may be an error in judgment by the FASB… . The likely result is that goodwill impairment will be used for earnings management and produce overstated net assets and un-conservative earnings”.
What does the final statement 142 say about fair value testing?
The final Statement 142 amended the proposed testing method to include an initial screen, in which the fair values of each reporting unit have to be compared to their carrying values. Only if the carrying value of a reporting unit exceeds its fair value does the second step of the test have to be carried out.
What do we know about the remainder of the FASB’s letters?
The remainder consisted primarily of requests to speak at the FASB’s public hearings and letters that did not comment on any of the issues discussed here.