Review Concepts on Quiz Flashcards Preview

ACCT 5130 > Review Concepts on Quiz > Flashcards

Flashcards in Review Concepts on Quiz Deck (6):
1

differential

difference between the fair value and the book value in an acquisition

2

acquisition method

when the assets are valued and goodwill if any is determined, any gain on the purchase if the cost was less than the fair value is recognized

3

acquisition of stock

any costs related to the acquisition are expenses and any stock costs are capitalized meaning that they are taken out of the value of the stock from APIC

4

contingent consideration

if goodwill is recognized but we find the asset is worth more later within a year. then we write up the asset and bring down goodwill because the asset was worth more

5

impairment

impairment loss
asset
we don't take it out of good will if it was an impairment unless we found that the value was different on the acquisition date

6

fair value method

where they are not required to consolidate and they revalue the investments fair value and adjust it accordingly booking an unrecognized gain on the investment
JE
Inv in company
Unrealized gain on barclay stock