For tax purposes, any loss of goodwill is not recorded as a loss since it is not tax-deductible, but it is also a non-cash item since the company has already paid for the acquisition.As of 2024, there are about 2 billion monthly active users on WhatsApp, but META still does not ...
Should Goodwill impairment be treated as a tax-deductible expense?The article discusses the acquisition of goodwill impairment for determining the economic benefits as a tax-reducing expense. It offers information related to use of tax-reducing expense for corporate income tax purposes if the tax ...
Intangibleassetshavefouruniquecharacteristicsthatdistinguishthemfromtangibleassets:•Moreuncertaintyaboutfuturebenefits•Valuesubjecttowiderfluctuations •Valuemaybeapplicabletoonlyone particularcompany.•Indeterminatelives.Forfinancialreportingpurposes,identifiableandunidentifiableintangibleassetsaretreatedthesame-theyareboth...
Forfinancialreportingpurposes,identifiableandunidentifiableintangibleassetsaretreatedthesame-theyarebothcapitalized. Identifiablevs.Unidentifiable Identifiable: Patents Copyrights Tradenames,trademarks Secretformulas Franchise License Unidentifiable: Goodwill ManynewtypesofintangibleassetsarediscussedinFASB141 AcquisitionofanEn...
In measuring the amount of a reporting unit’s goodwill impairment, an entity should consider the tax effect of any tax deductible goodwill, if applicable. The revised guidance didn’t change an entity’s ability—or the option—to first perform a qualitative assessment prior to performing the...
Grant Thornton Viewpoint Impairment: Indefinite-lived intangibles and goodwill January 2023 2 This publication was created for general information purposes, and does not constitute professional advice on facts and circumstances specific to any person or entity. Y...
Unlike goodwill amortization for financial reporting, which is a non-cash expense, tax-deductible goodwill provides cash savings for acquiring firms and may provide relevant information to assess firm value. To explore the valuation effects of tax-deductible goodwill, an algorithm was developed that...