International Reporting Issues Presented below are data and accounting policy notes for the…

International Reporting Issues Presented below are data and accounting policy notes for the goodwill of three international drug companies. Bayer, a German company, prepares its statements in accordance with International Financial Reporting Standards (IFRS); Glaxo SmithKline follows United Kingdom (U.K.) rules; and Merck, a U.S. company, prepares its financial statements in accordance with U.S. GAAP. Both U.S. GAAP and IFRS do not allow amortization of goodwill. Under U.K. standards, goodwill is amortized over useful lives not to exceed 20 years. Instructions (a) Compute the return on equity for each of these companies, and use this analysis to briefly discuss the relative profitability of the three companies. (b) Assume that each of the companies uses the maximum allowable amortization period for goodwill (if any). Discuss how these companies’ goodwill amortization policies affect your ability to compare their amortization expense and income. (c) Some analysts believe that the only valid way to compare companies that follow different goodwill accounting practices is to treat all goodwill as an asset and record expense only if the goodwill is impaired.* Using the data above, make these adjustments as appropriate, and compare the profitability of the three drug companies, comparing this information to your analysis in (a). (d) IFRS requires that development costs must be capitalized if technical and commercial feasibility of the resulting product has been established. Assume that Bayer recorded €1 million of development costs in the year reported above. Discuss briefly how this accounting affects your ability to compare the financial results of Bayer and Merck.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more