Accounting aspects of takeovers
Article Abstract:
Foreign companies often have an advantage over US corporations in the area of takeovers in that they receive more favorable treatment of their accounting for intangibles, particularly goodwill, under the accounting regimes of their countries than US corporations enjoy under US accounting regulations. Most foreign countries allow goodwill from acquisitions to be charged against shareholders' equity, with no affect on earnings per share, while US accounting regulations require the expensing of goodwill against earnings. US corporations are disadvantaged when it comes to making an acquisition in that, under the Accounting Principles Board (APB) Opinion #17, they must make annual charges against earnings for 40 years of the calculated goodwill, which has a negative impact on earnings, while the corporations of many countries, including the UK, the Netherlands, and Japan, do not suffer such negative consequences which would tend to discourage an acquisition. It would be more appropriate to change APB Opinion #17 to allow the immediate write off of goodwill against shareholders' equity to make US corporations more competitive in the international acquisition market and make their balance sheets more meaningful.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1990
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Cost accounting standards: putting the pieces together
Article Abstract:
Cost accounting standards (CAS) were first published by the Cost Accounting Standards Board in the 1970s. CAS were necessitated by the fact that cost accounting has become more congruent with financial reporting and generally accepted accounting principles. CAS were initially promulgated for use by defense contractors, but legislation extended their application in 1988, and CAS now applies to all government contracts for over $500,000. CAS include cost allocation standards, fixed asset accounting standards, and deferred compensation standards.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1991
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Does your system need repair?
Article Abstract:
The Cost Accounting Standards Board (CASB) developed rules for the defense contracting industry that may be applicable to problems in cost accounting in private industry in such areas as allocation, material costs, and advertising-public relations. The CASB was disbanded in the 1970s, but recent concern about cost-accounting challenges has given support to the idea of creating a new CASB to keep cost accounting progressing in the right direction.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1989
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