Sample Essay

The establishment of this standard affects the conceptual framework in two areas. As mentioned earlier the standard has abolished the amortization of goodwill over a period of 40 years. The FASB arrived at the conclusion that the previous practice of amortization was not in line with SFAS 2 which includes the guidelines for truthfulness in representation of data and with the issue of this standard the practice has become more reliable. This standard will also affect SFAS 7 which lies down the guideline for cash flow information and present values in accounting.

The new standard entails the calculation and testing of intangible assets not being amortized. The amortization expense was previously included in the financial statements and now this would not be included in the income statement, balance sheet or the statement of cash flows. Previously the amortization for each year was calculated and recorded but this has changed to testing of impairment only.

This is just a sample term paper for marketing purposes. If you want to order term papers, essays, research papers, dissertations, case study, book reports, reviews etc. Please access the order form.