Advanced Accounting Week 3 Discussion

By using the initial original transactions of the acquisition, the next step will be to record
any other transaction in accounting that took place throughout the year. The recording will be to
ensure that the transition from one level to the other is successful. For instance, is purchases are
made amounting to $200,000, and the fair market value of the same is $150,000; while the book
value is $125,000, it will be essential to account for the goodwill. The impaired goodwill and
depreciation will be for the next five years. The recording of the transactions will be as follows
$200,000 – $150,000 = $50,000.
The goodwill amount is $50,000, which is the difference between the purchase price and
the fair value in the market. Thus,
$10,000. Since the amount owed is 30%, the portion of the impairment will be $3,000.
Non-controlling interest is one of the concepts that show from the previous year to the
most recent (Minjung and Young-Tae, 2019). The value of the non-controlling interest in the
year 2019 is $7,138 million, while that for the 2020 fiscal year is $6,883 million.
The goodwill recorder in the consolidated balance sheet has been changing in different
years. As of January 2019, the goodwill amount was $31,181 million, and as of January 2020,
the amount was $31,073 (Wal-Mart, 2019). there is an absence of an impairment charge
connected with the intangible assets for 2019 and 2018 financial years. In January 2020, the units
for reporting consists of Walmart U.S. and Walmart International. There is no amortization of
the goodwill and other accrued assets, but there is an evaluation of the impairment done
annually. Change in events and circumstances is an indication of specific goodwill.

References

ADVANCED ACCOUNTING WEEK 3 DISSCUSION 3
Minjung, K. & Young-Tae, Y. (2019). Investor perception of fair value evaluation: focusing on
financial instruments. Investment Management and Financial Innovations, 16(1), 203-
214.
Wal-Mart (2019). 2018 SEC 10k Report. 2019, Retrieved from
https://www.sec.gov/Archives/edgar/data/104169/000010416918000028/wmtform10-
kx1312018.htm