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l differ from the Opinion. As a result of this change, impairment losses will be less likely than under the of the Opinion. Opinion 17 also treated the acquiring company as a stand-alone company even though they integrated the acquired company into their operations, so the premium paid for goodwill was not accounted for properly. The Statement, however, looks at the companies in an integrated manner and determines accounting for goodwill based on the combined reporting units of the new hybrid. Another difference between the Opinion and the Statement is that the Opinion looks at intangible assets as those with a certain life period, i.e. they should be amortized with a ceiling of 40 years. On the other hand, the Statement tests goodwill and intangible assets with indefinite lives for impairment on an annual basis. Under guidance of FASB Concepts Statement No. 7, Using Cash Flow Information and Present Value in Accounting Measurements, the statement estimates the fair values used in testing both goodwill and other intangible assets for impairment which are not being amortized. The test includes a two-step process that first examines the fair value of the company and a test of potential impairment then there is a measure for the amount of impairment if any is found. The intangible assets which are presumed to have finite lives will be amortized, but not under a constrained ceiling. Finally, the Statement requires the disclosure of information in years subsequent to the acquisition of goodwill and other intangible assets. “ Required disclosures include information about the changes in the carrying amount of goodwill from period to period (in the aggregate and by reportable segment), the carrying amount of intangible assets by major intangible asset classes for those assets subject to amortization and for those not subject to amortization, and the estimated intangible asset amortization expense for the next five years.” The Statement does carry forward some of the aspects of the Opinion. For instance, internally developed intangible asset treatment was kept the same in the Statement as it was taken from the Opinion. The Statement also keeps the requirement to expense the cost of certain research and development assets at the date of acquisition under requirements of FASB Statement No. 2, Accounting for Research and Development Costs, and FASB Interpretation No. 4, Applicability of FASB Statement No.2 to Business Combinations Accounted for by the Purchase Method. 

An Atlanta, Georgia based company with over one hundred acquisitions relies heavily on this Statement and first adopted FAS 142 on January 1, 2002. The company chose to use its fiscal October month-end for the performance of the annual impairment test for goodwill and for the franchise license intangibles. Prior to this date, the company allocated all of the cost of an acquisition, which was in excess of what was allocated to working capital and tangible assets, to the franchise license intangible assets. Upon adoption of FAS 141 and FAS 142, the company considered whether to reallocate a portion of the franchise license intangible assets to goodwill. However, paragraph 61 of FAS 141 states that unless separate purchase price allocations had occurred at acquisition and separate accounting records were maintained for goodwill and intangible assets which were previously reported as a single amount under 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。