Susan H. Ivancevich

Improving Students' Understanding of the Importance of Economic Consequences in Standard Setting: A Computerized Spreadsheet Tool.

Abstract In developing and implementing new accounting standards, consideration of potential economic consequences is often an important factor. In several instances, political pressure brought to bear on the Financial Accounting Standards Board (FASB) has caused it to alter a proposed or enacted standard. Accordingly, both the academic and professional communities have challenged accounting educators to go beyond simply teaching the mechanics of accounting topics. In particular, the Accounting Education Change Commission (AECC) has encouraged a perspective focusing on the user of accounting information. This article presents a tool for financial accounting educators to demonstrate the economic consequences of adoption of accounting standards.

The Economic Impact of International Differences in the Accounting and Tax Treatments of Goodwill: How Are Prospective Acquirers of U.S. Hospitality Interests Affected?

ABSTRACT The purpose of this article is to introduce hospitality executives to recent changes in the treatment of purchased goodwill and to the implications that international differences in the treatment of goodwill may have. Goodwill is the difference between the purchase price paid for a company and the fair market value (FMV) of that companys identifiable net assets. This paper provides an eight-country comparison of standards regarding the treatment of goodwill and discusses the implications of the differences that exist among countries. Despite the change in goodwill tax treatment afforded to U.S. firms in the 1993 tax bill, the U.S. continues to have less favorable standards regarding the accounting and tax treatment of purchased goodwill than do some foreign countries. Hence, U.S. firms still may be at a disadvantage in the hospitality acquisitions market when bidding against firms from countries with more favorable goodwill treatment.