If Apple had a massive investment in WeWork debt, what would happen? Given that WeWork just exited chapter 11. The underlying question– How do unrealized gains or losses affect the financial statements? Well, I would hope that Apple was more sophisticated than me. And did not get carried away in the WeWork hype. So, say, the WeWork debt is still
The way that accountants have recorded goodwill across the statements has varied. In 1970, the APB required firms to amortize goodwill for no longer than 40 years. Goodwill at that time was seen as a “wasting asset.” That is one with a definite life that loses value over time. This means that goodwill increased the amortization expense on the income
First, what really is goodwill? If I say that I have built up lots of goodwill with my friends, that suggests that I have built a decent reputation with them. Maybe this could be in the form of favors. I may have done a lot of favors for free. This builds goodwill.I may have covered their backs when they were
How do companies assess the value of goodwill on the balance sheet? Companies do not amortize goodwill as an expense. Why? Because goodwill in a sense is indefinite. Meaning that it does not have a specified life. When we think about other intangible assets such as patents or customers, there is an average expected life span associated with them. Patents
