An international bugbear

Article Abstract:

The proper way to account for goodwill remains unclear because several methods can be used to perform this task. By definition, goodwill is the difference between the price paid for an acquired company and the value of the assets. The problem of accounting for goodwill is not only a technical challenge but is also compounded by the massive size of goodwill on acquisitions. There are three main approaches to account for goodwill. Capitalization without amortization recognizes goodwill on acquisition and treats it as an asset. Meanwhile, capitalization with amortization handles goodwill as an asset with a finite life that is written down over time through the profit-and-loss account or preserves. Finally, immediate write-off involves writing goodwill off immediately to either the profit-and-loss account reserve or a separate reserve account over a year. Practices in different countries and a case study are discussed.

Acquisitions Analysis-Accounting, Acquisitions and mergers, Accounting, Goodwill (Business)

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Dinosaurs need not apply

Article Abstract:

The City of London's financial services industry created 51,000 services-related and knowledge-based jobs between 1984 and 1987, according to a report by the London Human Resource Group, but the industry faces several threats to its prosperity: weak recruiting practices to locate experienced workers and labor shortages which will cause new entry-level workers to be in short supply. Financial services industries must begin to change human resource planning and development, as a result.

United Kingdom, Planning, Financial services industry, Financial services, Human resource management, Employee recruitment, Employee motivation

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One transplant the NHS doesn't need

Article Abstract:

Great Britain's National Health Service (NHS) may adopt depreciation accounting methods. The NHS currently reports its capital expenditures annually to show how funds are allocated. Depreciation accounting is not well-suited to the information needs of public sector agencies, however. The NHS is not market-driven, and its output is not measurable in monetary terms; therefore a direct comparison with costs cannot be made in order to assess the size of surpluses or deficits.

Analysis, Management, Public finance, United Kingdom. National Health Service, Socialized medicine

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