Financial Accounting Series SFAS No 142

Financial Accounting Standards Board, 401 Merritt 7, … This Statement addresses financial accounting and reporting for acquired goodwill …

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Summary This Statement addresses financial accounting and reporting for acquired goodwill and other intangible assets and supersedes APB Opinion No. 17, Intangible Assets. It addresses how intangible assets that are acquired individually or with a group of other assets (but not those acquired in a business combination) should be accounted for in financial statements upon their acquisition. This Statement also addresses how goodwill and other intangible assets should be accounted for after they have been initially recognized in the financial statements. Reasons for Issuing This Statement Analysts and other users of financial statements, as well as company managements, noted that intangible assets are an increasingly important economic resource for many entities and are an increasing proportion of the assets acquired in many transactions. As a result, better information about intangible assets was needed. Financial statement users also indicated that they did not regard goodwill amortization expense as being useful information in analyzing investments. Differences between This Statement and Opinion 17 This Statement changes the unit of account for goodwill and takes a very different approach to how goodwill and other intangible assets are accounted for subsequent to their initial recognition.

Download Financial Accounting Series SFAS No 142 pdf from www.aicpa.org, 42 pages, 273.77KB.
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