Message: details of a google methodology
I tried to paste but the format was changed and too huge! Try this link and from what I did post here note the bold in last paragraph:
https://quizlet.com/29710207/mod-7-flash-cards/
Google's Investments Reported at Cost
- Google uses historical cost to account for investments in non-marketable securities.
- Google monitors the value of these investments and writes them down to market value if they suffer a permanent decline in value.
- If such an investee company ever goes public, Google will change its accounting method.
- Google monitors the value of these investments and writes them down to market value if they suffer a permanent decline in value.
- If such an investee company ever goes public, Google will change its accounting method.
The purchase price is allocated to acquired identifiable intangible assets, which include the following:
- Marketing-related assets like trademarks and internet domain names
- Customer-related assets like customer lists, production backlog, and customer contracts
- Artistic-related assets like plays, books, and video
- Contract-based assets like licensing and royalty agreements, lease agreements, franchise agreements, and servicing contracts
- Technology-based assets like patents, computer software, databases and trade secrets
- Customer-related assets like customer lists, production backlog, and customer contracts
- Artistic-related assets like plays, books, and video
- Contract-based assets like licensing and royalty agreements, lease agreements, franchise agreements, and servicing contracts
- Technology-based assets like patents, computer software, databases and trade secrets
The impairment test of Goodwill is a two-step process.
- First, if the market value of the investee company is less than the investment balance, the investment is deemed impaired.
- Second, the investor estimates the goodwill value as if the subsidiary were acquired at current market value, and the imputed balance for goodwill becomes the balance in the goodwill account.
- Second, the investor estimates the goodwill value as if the subsidiary were acquired at current market value, and the imputed balance for goodwill becomes the balance in the goodwill account.
Limitations of Consolidated Financial Statements
- Consolidation income does not imply that cash is received by the parent company.
-Comparisons across companies are often complicated by the mix of subsidiaries included in the financial statements.
- Segment profitability can be affected by intercorporate transfer pricing and allocation of overhead.
-Comparisons across companies are often complicated by the mix of subsidiaries included in the financial statements.
- Segment profitability can be affected by intercorporate transfer pricing and allocation of overhead.
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