Business Combinations: Goodwill and Other Intangible Assets (Portfolio 5115)

Description

Portfolio 5115, Business Combinations: Goodwill and Other Intangible Assets (Accounting Policy and Practice Series), examines in detail the creation of and accounting for goodwill and other intangible assets. The Portfolio addresses this subject both in general and in the context of business combinations. The Portfolio also briefly analyzes the corresponding tax treatment of goodwill and other intangibles.

Intangible assets having finite useful lives must be amortized and must also be tested for impairment if circumstances suggest that their carrying values might have declined. In contrast, goodwill and some other intangible assets have indefinite useful lives. These assets are not amortized but must be tested annually to determine if their carrying values have declined (become impaired).

Specifically covered in the Portfolio is FASB Accounting Standards Codification (ASC) Topic 350, Intangibles—Goodwill and Other, which address the recognition, measurement, presentation, and disclosure of goodwill and other intangible assets. The Portfolio provides examples of financial statement presentation about goodwill and other intangible assets and examples of appropriate notes.

Although this Portfolio focuses primarily on financial accounting, Section VIII discusses the related tax treatment of goodwill and other intangible assets.

This Portfolio may be cited as Bloomberg Tax Portfolio 5115, Benke and Zyla, Business Combinations: Goodwill and Other Intangible Assets (Accounting Policy and Practice Series).

Table of Contents

I. Significance of Goodwill and Other Intangible Assets
II. Goodwill
III. Other Intangible Assets
IV. The Valuation of Other Intangible Assets
V. Calculating Net Present Values and Using Expected Values
VI. Impairments and Impairment Testing
VII. Financial Statement Presentation and Disclosures
VIII. The Tax Consequences of Goodwill and Intangible Assets
IX. International Accounting Standards for Goodwill and Other Intangible Assets