Allocation of the purchase price discrepancy is (pg 56, 2006 annual report):
Property, equipment and leaseholds $2,254
Goodwill (5,209)
Net working capital deficiency (1,129)
Other liabilities (1,730)
Capital leases (235)
Transaction costs from Acquisition 139
Amortization (pg 72, 2005 annual report):
Advertising Contracts – Amortized over five years
Property, equipment and Leaseholds – straight line basis over the following useful lives:
Buildings: 30-40 years (for owned buildings on leased property, useful lives do not exceed the terms of the lease)
Equipment: 5-10 years
Leasehold Improvements – life of lease but not in excess of useful lives
Trademarks and Trade Names – Indefinite useful life
Goodwill – not amortized but reviewed for impairment annually
Capital Leases – See building amortization above
Accounting Policies:
GAAP followed by the company – Canadian GAAP
Disclosure regarding accounting for subsidiaries and other investees (page 69-70, 2005 annual report):
Accounting guideline 15, Consolidation of Variable Interest Entities, addresses the consolidation of business enterprises to which the usual condition (ownership of a majority voting interest) of consolidation does not apply... displayed 300 characters
Custom written essay
All essays are written from scratch by professional writers according to your instructions and delivered to your email on time. Prices start from $10.99/page
Your research paper is written by certified writers
Your requirements and targets are always met
You are able to control the progress of your writing assignment
You get a chance to become an excellent student!
Get a price guote
Allocation of the purchase price discrepancy is (pg 56, 2006 annual report):
Property, equipment and leaseholds $2,254
Goodwill (5,209)
Net working capital deficiency (1,129)
Other liabilities (1,730)
Capital leases (235)
Transaction costs from Acquisition 139
Amortization (pg 72, 2005 annual report):
Advertising Contracts – Amortized over five years
Property, equipment and Leaseholds – straight line basis over the following useful lives:
Buildings: 30-40 years (for owned buildings on leased property, useful lives do not exceed the terms of the lease)
Equipment: 5-10 years
Leasehold Improvements – life of lease but not in excess of useful lives
Trademarks and Trade Names – Indefinite useful life
Goodwill – not amortized but reviewed for impairment annually
Capital Leases – See building amortization above
Accounting Policies:
GAAP followed by the company – Canadian GAAP
Disclosure regarding accounting for subsidiaries and other investees (page 69-70, 2005 annual report):
Accounting guideline 15, Consolidation of Variable Interest Entities, addresses the consolidation of business enterprises to which the usual condition (ownership of a majority voting interest) of consolidation does not apply... displayed 300 characters
