Question.2443 - Using the FASB Codification In 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 - 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 A xxxxxxxxxxx description xx the xxxxxxx that xxxx up xxx goodwill xxxxxxxxxx such xx expected xxxxxxxxx from xxxxxxxxx operations xx the xxxxxxxx and xxx acquirer xxxxxxxxxx assets xxxx do xxx qualify xxx separate xxxxxxxxxxx or xxxxx factors xxxxxxxx Combinations xxxxxxxx or xxxx from xxxxxxx Purchase xxxxxxxxx Consideration xxxxxxxxxxx - 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 Goodwill xxx Other xxxxxxx Intangibles xxxxx Than xxxxxxxx Subsequent xxxxxxxxxxx - 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 - xxxxxxxx shall xxx be xxxxxxxxx Instead xxxxxxxx shall xx tested xxx impairment xx a xxxxx of xxxxxxxxx referred xx as x reporting xxxx Paragraphs x - x through x provide xxxxxxxx on xxxxxxxxxxx reporting xxxxx Business xxxxxxxxxxxx Goodwill xx Gain xxxx Bargain xxxxxxxx Including xxxxxxxxxxxxx Transferred x 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 xx a xxxxxxx purchase xxxx of xxx following 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 A xxxxxxxxxxx of xxx reasons xxx the xxxxxxxxxxx resulted xx a xxxx Not xxx Profit xxxxxxxx Business xxxxxxxxxxxx Disclosure x 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 - xx entity xxxxx report x change xx accounting xxxxxxxxx through xxxxxxxxxxxxx application xx the xxx accounting xxxxxxxxx to xxx prior xxxxxxx unless xx is xxxxxxxxxxxxx to xx so xxxxxxxxxxxxx application xxxxxxxx all xx the xxxxxxxxx a xxx cumulative xxxxxx of xxx change xx the xxx accounting xxxxxxxxx on xxxxxxx prior xx those xxxxxxxxx shall xx reflected xx the xxxxxxxx amounts xx assets xxx liabilities xx of xxx beginning xx the xxxxx period xxxxxxxxx b xx offsetting xxxxxxxxxx if xxx shall xx made xx the xxxxxxx balance xx retained xxxxxxxx or xxxxx appropriate xxxxxxxxxx of xxxxxx or xxx assets xx the xxxxxxxxx of xxxxxxxxx position xxx that xxxxxx c xxxxxxxxx statements xxx each xxxxxxxxxx prior xxxxxx presented xxxxx be xxxxxxxx to xxxxxxx the xxxxxxxxxxxxxxx effects xx applying xxx new xxxxxxxxxx principle xxxxxxxxxxxxxx Accounting xxxxxxxxx Codification xxx fasb xxx Retrieved xxxxxxx from xxxxx asc xxxx org xxxxxxx amp xxxx amp xxxxxx marker xxxxxxxxxxxx amp xxxxx Y xxx mdlIGluIGFjY xxxxxxxxxxxxxxxxxxxxxxMore Articles From Accounting
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