Finalnub

Sujan Wrote:
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> 1) Are deferred taxes considered a part of long
> term debt?
====> some are long term and some under current assets/liabilities. I guess it depends on probable time to realize

> 2) Schweser (SS9 - pg 171) mentions that 'not all
> intangible assets are reported on the balance
> sheet' - any idea which ones are not reported and
> why?
====> Yes, few such as intellectual capital are not shown on the balance sheet

> 3) Why are software development costs capitalized
> when the software is developed for internal use? I
> would have thought that the internal use of the
> software would be part of operation or in the
> cases where the cost of the software is not
> significant for the firm.
===> Software development costs could mean that the company may need fewer workforce, if the product is implemented internally and be a source for revenue if sold. So in general, we can say it is a value add

> 4) Schweser (SS9 - pg 177) states the following:
> depreciation expense may be allocated between COGS
> and S&GA expenses. What does this mean?
=====> Yes, because COGS will reflect direct expenses, depreciation of ppe, building etc. Whereas, the depreciation of indirect property such as tables and chairs will be allocated to S&GA. I guess



> 5) Schweser (SS9 - pg 184) states: because of its
> inseparability, goodwill is valued at the
> reporting unit level. What does this mean?
====> It simply means that G/W cannot be seperated from the company. G/W is the excess price paid over fair value of the acquired company's assets.


> 6) Are there any tax savings as a result of
> impairing an asset?
=====> Yes if the asset is considered Asset in use. I am not so sure if the asset is classified under "asset for sale"
>
> Thanks!


hth.