9/12 Chapter 3 Flashcards Preview

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


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


Direct control

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


Indirect control

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


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