9/12 Chapter 3 Flashcards Preview

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Flashcards in 9/12 Chapter 3 Deck (4):
1

Goodwill

Net Asset carry value
FV Net Assets(appraised)
Unit/Enterprise FV(valuation of future cash flows)
Compare the unit FV to the CV
If the UFV is > the carrying value no impairment
If the UFCompare the FVA to CV
Debit Goodwill Impair
Credit Goodwill

2

Direct control

when one company owns a majority of another company's common stock

3

Indirect control

when a company's common stock is owned by one or more companies under the control of one company

4

fiscal periods

we take the parents year end and change the subs year end
or we adjust the date of the sub each period to place the data on a basis consistent with the fiscal period of the parent