#preacquisitive

[justyournewsworld]

Profile of DeepMind, which reached a pre-acquisition arrangement that would prevent Google from unilaterally taking control of its IP, according to a source (Hal Hodson/1843)

Profile of DeepMind, which reached a pre-acquisition arrangement that would prevent Google from unilaterally taking control of its IP, according to a source (Hal Hodson/1843)

Hal Hodson / 1843: Profile of DeepMind, which reached a pre-acquisition arrangement that would prevent Google from unilaterally taking control of its IP, according to a source  —  Demis Hassabis founded a company to build the world’s most powerful AI.  Then Google bought him out.  Hal Hodson asks who is in charge

[freewhispersmaker]

On April 1, 2004, Guns, Inc., purchases 70

Reporting as noncontrolling interest in the subsidiary’s net income and preacquisition income? On April 1, 2004, Guns, Inc., purchases 70 percent of the outstanding stock of Roses Corporation for $430,000. The subsidiary’s book value on that date was $500,000. Any excess cost was attributable to goodwill. During 2004, Roses generates revenues of $600,000 and expenses of $360,000. Both figures…

[charlesjening]

Investor Advisory Committee

November 12, 2019

The Investor Advisory Committee (

IAC

) met on November 12, 2019. At the meeting, the

FASB

staff delivered updates and IAC members provided input on the following FASB topics:

IAC Emerging Issues and Trends: IAC members discussed their observations on the adequacy of disclosures for contingent liabilities and interest rate sensitivity. Members also discussed the increasing prevalence of supply chain financing arrangements and recommended that companies provide additional information about these transactions.

Accounting for Revenue Contracts in a Business Combination: IAC members discussed how they analyze deferred revenue in the context of a business combination. Members generally agreed that the requirement to measure deferred revenue at fair value is not useful. Members explained that the resulting adjustments, often decreases to the preacquisition deferred revenue balance, are challenging to understand, reduce comparability between the preacquisition and postacquisition periods, and that there is usually an attempt to unwind them when performing their analyses. Accordingly, members generally preferred an alternative that would provide an exception to the fair value measurement requirement for deferred revenue in a business combination. However, some members expressed concerns about the implications of providing an additional exception to the accounting for business combinations. Members also discussed enhancing disclosures if fair value measurement of deferred revenue is continued and similar overall concerns with inventory acquired in a business combination.

Contract Modifications of Licenses of Intellectual Property: IAC members discussed licenses of functional intellectual property that convert to software-as-a-service contracts as part of a contract modification. Members noted that they were unaware of these contract modifications and of the treatment by companies to defer upfront revenue normally recognized at a point in time in anticipation of the modification. Members explained that they generally think of those two arrangements as distinct contracts. Accordingly, members recommended that the conversion to software-as-a-service be accounted for prospectively (no adjustment to revenue recognized under previous contract terms). Members also recommended that companies disclose more information about revenues recognized at a point in time versus revenues recognized over time. Some members also recommended enhanced disclosure pertaining to remaining performance obligations.

Disclosure Framework—Interim Reporting: IAC members discussed the events that should trigger the disclosure of more detailed information in an interim period. Members generally agreed that enhanced interim disclosure should be completed for any event that significantly affects revenues, expenses, or cash flows. Members further discussed other specific information that would be useful for interim periods. Members also generally agreed that there are some quarterly disclosures that could be provided on an annual basis instead, but some cautioned against removing those interim disclosure requirements because of the diverse nature of companies that provide them.

Reference Rate Reform: IAC members discussed the adequacy of disclosures provided by companies that will be affected by the reference rate transition. Members explained that companies are providing limited disclosure on their exposures to benchmark interest rates being phased out. Members ideally would like companies to provide more detailed disclosures about their exposures to specific reference rates for both assets and liabilities as well as the reference rates to which those assets and liabilities will transition. Additionally, members requested more information about hedging relationships that may be discontinued in anticipation of the reference rate transition.

Financial Performance Reporting–Disaggregation: IAC members discussed the internal view approach to disaggregating certain expense items on the income statement. Members expressed mixed views on the approach. Members generally agreed that, in principle, more detailed expense information would be useful for trend analysis. Additionally, members discussed how some of this information is currently provided in the Management’s Discussion and Analysis (MD&A) section of the financial report. Despite the information already provided in MD&A, some members explained that having the absolute expense amounts on the income statement or in the footnotes would be useful.  Other members expressed concern that the internal view approach to disaggregation could reduce comparability across companies and could be misleading over time. Members also discussed the project’s interaction with the Segments Reporting project.

The next IAC meeting will be held on May 14, 2020. For more information on the IAC, please visit the FASB website. 

republished from FASB - Latest News

[fullgrade-blog]

Following are preacquisition financial balances for Padre Company and Sol Company as... Posted 1 hour ago

Following are preacquisition financial balances for Padre Company and Sol Company as… Posted 1 hour ago

Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts.

Padre Company

Sol Company

Book Values Book Values Fair Values 12/31 12/31 12/31   Cash $ 571,500 $ 52,250 $ 52,250   Receivables 235,500 350,000 350,000   Inventory 425,000 250,000 307,800   Land 602,500 216,000 188,900…

[fullgrade-blog]

Following are preacquisition financial balances for Padre Company and Sol Company as... Posted 1 hour ago

Following are preacquisition financial balances for Padre Company and Sol Company as… Posted 1 hour ago

Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts.

Padre Company

Sol Company

Book Values Book Values Fair Values 12/31 12/31 12/31   Cash $ 193,250 $ 72,900 $ 72,900   Receivables 228,000 369,000 369,000   Inventory 602,500 190,000 242,200   Land 765,000 195,000 166,200   Building…

[fullgrade-blog]

Following are preacquisition financial balances for Padre Company and Sol Company as... Posted 1 hour ago

Following are preacquisition financial balances for Padre Company and Sol Company as… Posted 1 hour ago

Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts.

Padre Company

Sol Company

Book Values Book Values Fair Values 12/31 12/31 12/31   Cash $ 300,750 $ 62,200 $ 62,200   Receivables 279,000 353,000 353,000   Inventory 510,000 269,000 323,100   Land 677,500 176,000 150,900   Building…

[fullgrade-blog]

Following are preacquisition financial balances for Padre Company and Sol Company as... Posted 1 hour ago

Following are preacquisition financial balances for Padre Company and Sol Company as… Posted 1 hour ago

Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts.

Padre Company

Sol Company

Book Values Book Values Fair Values 12/31 12/31 12/31   Cash $ 526,750 $ 88,800 $ 88,800   Receivables 222,750 359,000 359,000   Inventory 487,500 283,000 334,500   Land 610,000 136,000 115,400…

[fullgrade-blog]

Following are preacquisition financial balances for Padre Company and Sol Company as... Posted 1 hour ago

Following are preacquisition financial balances for Padre Company and Sol Company as… Posted 1 hour ago

Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts.

Padre Company

Sol Company

Book Values Book Values Fair Values 12/31 12/31 12/31   Cash $ 193,250 $ 72,900 $ 72,900   Receivables 228,000 369,000 369,000   Inventory 602,500 190,000 242,200   Land 765,000 195,000 166,200   Building…

[freewhispersmaker]

Which of the following is true if the books of a subsidiary are closed immediately before the parent...

Which of the following is true if the books of a subsidiary are closed immediately before the parent…

Which of the following is true if the books of a subsidiary are closed immediately before the parent acquires it in the middle of the year? a. preacquisition earnigs and dividends of the subsidiary are carried forward b. the balance of the subsidiary’s retained earnings serves as the beginning balance in making the investment elimination entry. c. the subsidiary’s retained earnings at the…