Evaluate the implications for financial reporting of the change in the Essay - 1

Evaluate the implications for financial reporting of the change in the treatment of goodwill from IAS22 to IFRS3 - Essay Example This has impacted the financial statements of entities. In this essay the implications of these changes of financial accounting and reporting of goodwill are evaluated and discussed in detail. Goodwill computations will be highly affected with effective changes brought in by IFRS 3. Business combinations will now be accounted for only under purchase method, and merger accounting is banned. Intangible assets will be identified in larger way impacting goodwill as the IFRS 3 contains a list of suggestive intangibles. Contingent liabilities will play effective role in goodwill valuation as they will be recognized at fair value. Henceforth goodwill will not be amortized but will face impairment test will all other intangibles. Non- controlling interests will play effective role in determining cost of acquisition and thus in goodwill valuation for acquirer. Cost of restructuring the acquisition will be written off to profit and loss. This will play a part in enhancing goodwill valuation under purchase method. Excess of cost of acquisition over fair value of net assets acquired shall be treated as gain or negative goodwill and will be credited to profit and loss. The major impact is that Goodwill now be considered a permanent asset. IFRS 3 has restricted business combination accounting only under ‘purchase’ method where â€Å"the acquiring company records net assets received at fair value at the date of combination. Any excess of cost over the fair value of net assets is allocated to goodwill.† (Venkatesan Sundarrajan, 1995)1. Fair value of net assets is calculated by deducting the fair market value of liabilities (including contingent liabilities) undertaken from the fair value of identified tangible and intangible assets acquired, and goodwill is the difference between cost of acquisition and the fair value of net assets acquired on acquisition date. Though goodwill was also earlier being recorded as residual value under

EBusiness and Ethics Essay Example | Topics and Well Written Essays - 500 words

EBusiness and Ethics - Essay Example The growth and advancement of computer technology and several networks have encouraged an incline in the number of criminal activities propagated over the computers as well as risks (Jamrich and Dan Oja 28). The world is currently witnessing the development of new criminal activities that are being committed through the digital world. Therefore, there is a greater need of coming up with measures and strategies that can help curb cyber risks. There are many system administrators and skilled enough to do the work and provide what the client need. However,  it is hard to find the one that can do what you want with the right way and beneficial and effective for long time. The biggest problem that companies face is the security in the network. The data and information are crucial to a company that is why they need security. In these days, there are many viruses that can harm the computers and destroy the data in companies and it cost them lots of money and gives them a bad reputation. The project will provide and set up data security to the cell phones that helps to secure the data and protect it from threats and viruses (Siegel 31). Furthermore, there is need for security from the outside network. Also, the cell phones should have protection from viruses that destroy and might consequently steal data. Nowadays, every company needs to setup a security program and the only way to do it is to hire system administrators to do that with the right way. What the project intend to  set up is the required security for the data and cell phone. Further, the data will be backed up because it is better to have backed up data in case it is lost or destroyed. Setting up security for the data and cell phone will include activating the firewalls, blocking any spyware attacks, as well as using valid malware software or anti-virus. Protection of data entails using encryption for the most sensitive files such as the financial records, tax returns, and backing up the significant