Question.2553 - RequirementsUsing the FASB CodificationIn this case, LinkedIn and Microsoft followed GAAP. Your task is to identify the exact part of the FASB codification that contains the applicable rules. For each question, cite the section number, and cut and paste the rule into your answer. What section of the codification requires: Internally developed intangible assets should NOT usually be recorded as assets? As of the date of an acquisition, the acquirer should allocate the purchase price to assets acquired based on their fair values? Companies must amortize intangible assets with a definite life over their useful lives? Goodwill should not be amortized? Income from an acquired subsidiary should be reported by the acquirer from the date of acquisition onwards A pro forma disclosure is required by an acquirer of revenues and income as if the acquisition had occurred as of the first day of the prior year. Changes in accounting principles should be reflected retrospectively, by restating prior years.
Answer Below:
Microsoft xxx LinkedIn xxxxxxxx Combinations xxxxxxxx or xxxx from xxxxxxx Purchase xxxxxxxxx Consideration xxxxxxxxxxx - xxxx nbsp xxxx Paragraph x - x identifies xxx of xxx objectives xx disclosures xxxxx a xxxxxxxx combination xx meet xxxx objective xxx acquirer xxxxx disclose xxx of xxx following xxxxxxxxxxx for xxxx business xxxxxxxxxxx that xxxxxx during xxx reporting xxxxxx a x qualitative xxxxxxxxxxx of xxx factors xxxx make xx the xxxxxxxx recognized xxxx as xxxxxxxx synergies xxxx combining xxxxxxxxxx of xxx acquiree xxx the xxxxxxxx intangible xxxxxx that xx not xxxxxxx for xxxxxxxx recognition xx other xxxxxxx Business xxxxxxxxxxxx Goodwill xx Gain xxxx Bargain xxxxxxxx Including xxxxxxxxxxxxx Transferred x nbsp xxxx nbsp xxxxxxxxx - x - xxxxxxxxxx one xx the xxxxxxxxxx of xxxxxxxxxxx about x business xxxxxxxxxxx To xxxx that xxxxxxxxx the xxxxxxxx shall xxxxxxxx all xx the xxxxxxxxx information xxx each xxxxxxxx combination xxxx occurs xxxxxx the xxxxxxxxx period x The xxxxxxxxxxxxxxxx fair xxxxx of xxx total xxxxxxxxxxxxx transferred xxx the xxxxxxxxxxxxxxxx fair xxxxx of xxxx major xxxxx of xxxxxxxxxxxxx such xx the xxxxxxxxx Cash xxxxx tangible xx intangible xxxxxx including x business xx subsidiary xx the xxxxxxxx Liabilities xxxxxxxx for xxxxxxx a xxxxxxxxx for xxxxxxxxxx consideration xxxxxx interests xx the xxxxxxxx including xxx number xx instruments xx interests xxxxxx or xxxxxxxx and xxx method xx determining xxx fair xxxxx of xxxxx instruments xx interests xxxxxxxxxxx mdash xxxxxxxx and xxxxx nbsp xxxx nbsp xxxxxxx Intangibles xxxxx Than xxxxxxxx nbsp xxxx nbsp xxxx nbsp xxxxxxxxxx Measurement x nbsp xxxx nbsp xxx accounting xxx a xxxxxxxxxx intangible xxxxx is xxxxx on xxx useful xxxx to xxx reporting xxxxxx An xxxxxxxxxx asset xxxx a xxxxxx useful xxxx shall xx amortized xx intangible xxxxx with xx indefinite xxxxxx life xxxxx not xx amortized xxxxxxxx - xxxx Goodwill xxxxx not xx amortized xxxxxxx goodwill xxxxx be xxxxxx for xxxxxxxxxx at x level xx reporting xxxxxxxx to xx a xxxxxxxxx unit xxxxxxxxxx - x - xxxxxxx - xxxxxxx guidance xx determining xxxxxxxxx units xxxxxxxx Combinations xxxxxxxx or xxxx from xxxxxxx Purchase xxxxxxxxx Consideration xxxxxxxxxxx - xxxx nbsp xxxx Paragraph x - x identifies xxx of xxx objectives xx disclosures xxxxx a xxxxxxxx combination xx meet xxxx objective xxx acquirer xxxxx disclose xxx of xxx following xxxxxxxxxxx for xxxx business xxxxxxxxxxx that xxxxxx during xxx reporting xxxxxx f xxxx In x bargain xxxxxxxx both xx the xxxxxxxxx nbsp xxx amount xx any xxxx recognized xx accordance xxxx paragraph x - x and xxx line xxxx in xxx income xxxxxxxxx in xxxxx the xxxx is xxxxxxxxxx nbsp x description xx the xxxxxxx why xxx transaction xxxxxxxx in x gain xxx for xxxxxx Entities xxxxxxxx Combinations xxxxxxxxxx - xxxx nbsp xxxx If xxx new xxx is x public xxxxxx and xx presents xxxxxxxxxxx financial xxxxxxxxxxx in xxx annual xxxxxxxxx period xxxxxxxxx the xxxx in xxxxx the xxxxxx occurs xx shall xxxxxxxx the xxxxxxxxxxxx proforma xxxxxxxxxxx in xxx preceding xxxxxxxxx for xxx comparable xxxxx reporting xxxxxx as xxxxxx the xxxxxx date xxx been xxx beginning xx that xxxxx annual xxxxxxxxx period xxxxxxxxxx Changes xxx Error xxxxxxxxxxx Overall xxxxx Presentation xxxxxxx - xxxx nbsp xxxx An xxxxxx shall xxxxxx a xxxxxx in xxxxxxxxxx principle xxxxxxx retrospective xxxxxxxxxxx of xxx new xxxxxxxxxx principle xx all xxxxx periods xxxxxx it xx impracticable xx do xx Retrospective xxxxxxxxxxx requires xxx of xxx following x The xxxxxxxxxx effect xx the xxxxxx to xxx new xxxxxxxxxx principle xx periods xxxxx to xxxxx presented xxxxx be xxxxxxxxx in xxx carrying xxxxxxx of xxxxxx and xxxxxxxxxxx as xx the xxxxxxxxx of xxx first xxxxxx presented x An xxxxxxxxxx adjustment xx any xxxxx be xxxx to xxx opening xxxxxxx of xxxxxxxx earnings xx other xxxxxxxxxxx components xx equity xx net xxxxxx in xxx statement xx financial xxxxxxxx for xxxx period x Financial xxxxxxxxxx for xxxx individual xxxxx period xxxxxxxxx shall xx adjusted xx reflect xxx period-specific xxxxxxx of xxxxxxxx the xxx accounting xxxxxxxxx ReferencesFASB xxxxxxxxxx Standards xxxxxxxxxxxx reg xxx fasb xxx Retrieved xxxxxxx from xxxxx asc xxxx org xxxxxxx amp xxx trid xxx amp xxxxxx marker xxxxxxxxxxxx amp xxx query x hhb xxxxxxxxxxxx bnRpbmcgcHJpbmNpcGxlcwMore Articles From Accounting
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