Chapter 3, Analysis case

Chapter 3, Analysis case - 21th Sept. 2011 Module 5, Group...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
21th Sept. 2011 Module 5, Group A Chapter 3 Analysis Case RE: Sprint Nextel Analysis Case 1) In 2007, Sprint had a charge to goodwill impairment as non-cash and reported it as twenty-nine point seven billion. 2) Sprint experienced a decline in stock prices that was significant. The goodwill was reported because of this sustained experience in the 2007. The reason Sprint had experienced this is because of their over estimation of subscribers. The FSAB Accounting Standards Codification (350-20-35-30) states several conditions of goodwill impairments. The conditions include: “a. A significant adverse change in legal factors or in the business climate b. An adverse action or assessment by a regulator c. Unanticipated competition d. A loss of key personnel e. A more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of f. The testing for recoverability under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 of a significant asset group within a reporting unit g. Recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit” . 3) The Consolidated Balance Sheet displayed Goodwill at $30,904 million in the 2006 statements. In the 2007, the Consolidated Balance Sheet displayed Goodwill as $935. The Goodwill impairment in the Consolidated Statement of Operations showed $29,729 million. The
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Chapter 3, Analysis case - 21th Sept. 2011 Module 5, Group...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online