Overview
-
Learn how to account for long-term assets on the balance sheet through asset impairment.
Syllabus
-
Introduction
- How impaired assets impact the balance sheet
- Recording the purchase of a sports franchise
- A basic purchase
- A basket purchase
- Acquiring an entire business
- The old Blockbuster Video case
- Straight-line depreciation and book value
- Accelerated depreciation and income taxes
- Difference between depreciation and amortization
- Rio Tinto buys a coal mine in Mozambique
- The strange tangible asset impairment test in US GAAP
- Practice with tangible asset impairment computations
- A big bath: Strategic reporting of impairment losses
- Why did Microsoft buy Nokia?
- Intangible asset impairment test for finite-lived intangibles
- Intuitive impairment test for infinite-lived intangibles
- The ill-fated AOL-Time Warner merger
- The new goodwill impairment rule
- The old and costly goodwill impairment rule
- Case study in goodwill impairment: HP and Autonomy
- Does Coca-Cola have more cash or more fixed assets?
- The upward revaluation option under International Financial Reporting Standards (IFRS)
- What will we report in the future, cost or fair value?
