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Applications of Acquisition Accounting Look at Microsoft’s 10‐K for the fiscal year ended June 30, 2015 to answer the following questions. 1.  In April 2014, Microsoft acquired “substantially all” of Nokia’s Devices and Services business (NDS). a.  Microsoft accounted for its purchase of NDS using “business combination” or “acquisition” accounting.  But NDS was not a separate company.  Why did Microsoft use the same accounting that is used to report acquisitions of companies?  Cite Codification to support your answer. b.  Purchases of some of the assets and liabilities of another company can be reported as a business combination or using the same accounting as used to purchase, for example, land and buildings.  Identify two major differences between these reporting alternatives.  Use Microsoft’s acquisition of NDS to illustrate these differences. 2.  In fiscal 2015, Microsoft reported goodwill impairment of $5.1 billion for one of its reporting units.  The questions below relate specifically to the reporting unit involved, and its goodwill. a.  Which reporting unit’s goodwill was impaired? b.  Microsoft identifies several business and economic reasons for the goodwill impairment. What are they? c.  What are the major judgments Microsoft must make to estimate the present value of future cash flows, needed to determine this goodwill impairment?  Only identify the judgments related to Microsoft’s 2015 goodwill impairment. d.  What are the major identifiable intangible assets of the reporting unit?  Why was it necessary to estimate the fair value of each of these intangible assets?  Is Microsoft required to measure these fair values every year?  Explain the circumstances where these fair values are required.  If Microsoft used IFRS to report its financial results, are there any circumstances where it would be required to measure the individual fair values of the unit’s identifiable intangible assets in determining goodwill impairment? Explain. Look at the December 31, 2015 10‐K of Expedia, Inc. to answer the following questions. 3.  Expedia acquired HomeAway at the end of 2015.  Part of the acquisition cost was “replacement restricted stock units and stock options” of $19,513,000.  However, Expedia actually issued additional stock awards of approximately $126 million connected with this acquisition.  Why were only about $20 million of awards included in the acquisition cost?  Cite Codification to support your answer. 4.  Expedia lists “deferred tax liabilities” of $108,477,000 as one of the liabilities it acquired from the HomeAway acquisition.  Explain, in your own words, the nature of this liability, the conditions under which it arises, and how the liability is measured at the date of acquisition. Cite Codification to support your answer. 2 5.  Expedia discloses that it incurred legal, finance, consulting and other professional fees of $47 […]

5-2 Scenario Analysis: Computer Chips A manufacturer of computer chips has a computer hardware company as its largest customer. The computer hardware company requires all of its chips to meet specifications of 1.2 cm. The vice-president of manufacturing, concerned about a possible loss of sales, assigns his production manager the […]

Critical Appraisal of Improvement of Patient Safety Do not answer the questions with a yes or no; rather, provide a rationale or include examples or content from the study to address the questions.   CRITICAL APPRAISAL GUIDELINES: QUALITATIVE STUDY Problem Statement Identify the clinical problem and research problem that led […]

Lessons from Affluenza, What makes for a happy life? A meaningful, fulfilling, existence? Five to ten years from now, I expect to lead a meaningful life full of accomplishments in a household footprint of 5.2. While not so many people are passionate about their existence, I look forward to a […]

Introduction to the problem: A. Provide a concise description of the scenario that you will be analyzing This case presents the challenges of A-CAT’s vice president. This was a medium-sized manufacturing and distribution organization specializing in household electrical appliances, particularly targeting the rural people, which is cost sensitive. The organization’s […]

Reflection on Process We also used standards and procedures to initiate benchmarks for all the group members to attain. In other words, serve our clients by ensuring that we deliver not only good designed T-shirts but also meet their expectations. Because if customers are satisfied, they are likely to come […]

Developing Business Processes: Literature Review The business process has gained popularity in previous ten years. It developed from a set of techniques to increase the performance of the enterprise. The extensive use of business process has been due to the prevalence of Enterprise Resource Planning (ERP) (Al-Mudimigh 2007). Conventionally, business […]

Reflection on People In our organisation, we used various structures including structures where people individuals meet and interact not only formally but also informally. There is also controlled performance, which has structures for rules and policies for people to adhere to. Another structure is collective objective for people to strive […]

Literature review of people in the organisation An organisation is instituted based on the negotiated association between people, who in turn work together as a tea for the characteristic of the firm.  In this case, people are our group members who will be in of selling the T-shirts. Research shows […]