Reference no: EM13987758
"Asset Impairments: The Recession of 2008-2009"
From the case study, compare the disclosure notes provided in Nestle, Swatch Group, and Royal Bank of Scotland with the disclosure notes of News Corp and CBS Corporation. Explain which disclosure notes are more informative to the stakeholders in the evaluation of the financial statements.
Contrast the difference between the impairment testing of goodwill and the impairment testing requirements for other assets. Examine the purpose of the differences identified in testing impairment of goodwill and other assets.
This case explains various methods firms use to compute cost under U.S. GAAP and IFRS. The case includes discussions of: historical cost; lower of cost or market (U.S. GAAP); lower of cost or net realizable value (IFRS); fair value under IFRS and U.S. GAAP, and; impairment for goodwill and other assets under both IFRS and U.S. GAAP.
The case then provides impairment notes for three IFRS reporting firms (Nestle, Swatch Group, and Royal Bank of Scotland) and two U.S. GAAP reporting firms (News Corp and CBS Corporation). The IFRS reporting firms have far more detailed disclosures and the disclosures are considerably more informative.
The case is a good introduction to various cost measures. It also provides a good overview of impairment testing and impairment disclosures under IFRS and U.S. GAAP. The case can be used with Vivendi Group: Goodwill Impairment Test (Chapter 4), which provides the impairment disclosure note for Vivendi, a disclosure that is more detailed than any of the five disclosures in this case.
|
Corporate after-tax yield
: The Shrieves Corporation has $20,000 that it plans to invest in marketable securities. It is choosing among AT&T bonds, which yield 8.75%, state of Florida muny bonds, which yield 6% (but are not taxable), and AT&T preferred stock, with a dividend yi..
|
|
Pricing american options-use matlab to write a computer code
: Use Matlab to write a computer code which takes as inputs: and which calculates the American option price as well as the composition of the replicating portfolio at every node of the tree and also determines the optimal exercise dates.
|
|
Negative position implies receivables exceed payables
: Kantorovich Company normally takes 30 days to pay for its average daily credit purchases of $2,000. Its average daily sales are $3,000, and it collects accounts in 25 days. What is its net credit position? Note that a negative position implies receiv..
|
|
Use matlab to write a computer code which takes as inputs
: Use Matlab to write a computer code which takes as inputs: and which calculates the European option price as well as the composition of the replicating portfolio at every node of the tree.
|
|
Asset impairments
: From the case study, compare the disclosure notes provided in Nestle, Swatch Group, and Royal Bank of Scotland with the disclosure notes of News Corp and CBS Corporation. Explain which disclosure notes are more informative to the stakeholders in the ..
|
|
Using the expectations hypothesis theory
: Using the expectations hypothesis theory for the term structure of interest rates, determine the expected return for securities with maturities of two, three and four years based on the following data. Do an analysis similar to that in the right-hand..
|
|
What is a reasonable estimate of the market risk-premium
: Suppose CAPM works, and you know that the expected returns on Google and IBM are estimated to be 13.50% and 10.75%, respectively. You have just calculated extremely reliable estimates of the betas of Google and IBM to be 1.22 and 0.80, respectively. ..
|
|
Compute anticipated return after financing costs
: Assume that atlas sporting goods inc, has $840in assets. if it goes with a low liquidity plan for the assets if it goes with a low liquidity plan for the assets it can earn a return of 15 percent but with a high liquidity plan the return will be 12 p..
|
|
Firm is considering purchasing a factory
: A firm is considering purchasing a factory for $1 million. The factory will yield a cash flow of CF1 = $200,000 in one year, a cash flow of CF2 = $300,000 in two years, and then will be sold for CF3 = $900,000 in three years. The appropriate interest..
|