acquisition

Examples of acquisition in the following topics:

• Amortized Cost Method

  • Debt held to maturity is shown on the balance sheet at the amortized acquisition cost.
  • Debt held to maturity is shown on the balance sheet at the amortized acquisition cost.
  • To find the amortized acquisition cost the securities are amortized like a mortgage or a bond.
  • Debt held to maturity is shown on the balance sheet at the amortized acquisition cost.
  • To find the amortized acquisition cost the securities are amortized like a mortgage or a bond.

• Reporting Assets

  • A business must report an asset's acquisition cost, how it is depreciated, any subsequent expenditures tied to it, and how it is disposed.
  • The acquisition cost is how the asset is valued on a business's balance sheet.
  • The acquisition cost equals the amount of cash and other property given up to acquire it and place it into operation.
  • Costs associated with fixing used property so it can be used by the company are included in the acquisition costs.
  • Explain how to value and report an asset from its acquisition to its disposal

• Depletion Base

  • The depletion base is the total cost of a natural resource and includes acquisition, exploration, development, and restoration costs.
  • It can include costs related to the acquisition of the asset, exploration, development and preparation of the asset for use, and performance of restoration work .

• Valuation of Intangible Assets

  • The valuation of intangible assets with identifiable useful lives such as patents, trademarks, and copyrights are initially valued at acquisition costs.
  • From an accounting perspective, intangible asset valuation is primarily derived from acquisition costs.
  • An acquisition identifies the value one party was willing to pay for an asset while at the same time identifying the value another party was willing to accept to relinquish that asset.

• Characteristics of Intangible Assets

  • Goodwill is only recognized through an acquisition of a company or business combination and is calculated as the difference between the amount of money paid to acquire a company and the fair or book value of the acquired company's net assets.
  • Goodwill is a type of intangible asset that is acquired and recorded due to a business acquisition or combination rather unlike other intangible assets, which may be internally developed by the company.
  • Firms initially record intangible assets at cost, however only costs associated with the outright purchase in the acquisition of an intangible asset.

• Cost of Equipment

  • The cost of equipment is the item's purchase price, or historical cost, plus other initial costs related to acquisition and asset use.

• Assessing Fair Value

  • Transaction costs, such as brokerage fees, included in acquisition cost and capitalized, or immediately expensed.
  • Transaction costs, such as brokerage fees, may be included in acquisition cost and capitalized, or immediately expensed.

• Key Considerations for the Statement of Cash Flows

  • Investing activities - the acquisition and disposal of long term assets and other investments not included in cash equivalents.
  • Transactions include the sale and acquisition of property, plant, and equipment; the collection and granting of long-term loans to others; and the trading of available-for-sale and held-to-maturity securities of other businesses.

• Calculating Fair Value

  • Calculating fair value involves considering objective factors including acquisition, supply vs. demand, actual utility, and perceived value.

• Special Considerations for Acquisition and Depletion of Natural Resources

  • On the balance sheet, we classify natural resources as a separate group among noncurrent assets under headings such as "timber stands" and "oil reserves. " Typically, we record natural resources at their cost of acquisition plus exploration and development costs; on the balance sheet, we report them at total cost less accumulated depletion.