Hi, need to submit a 5000 words essay on the topic The Effect of the Goodwill Amortization on the Informative of Earnings.The paper also focuses on particular examples and analyses the differences cau

Hi, need to submit a 5000 words essay on the topic The Effect of the Goodwill Amortization on the Informative of Earnings.

The paper also focuses on particular examples and analyses the differences caused by the changed guidelines by considering many literature reviews and statistics. Further, it takes into account a data set that provides information about certain performance measures of the companies. Taking the hypothesis that the information content of the income without the extraordinary items is something that is significantly equal to the income that is generated after the exclusion of the goodwill amortization, the data is used to generate empirical results to prove the hypothesis. Through the results and through the performance measures deductions are made about the information contents of the variables use. Hence the paper basically, in the end, tries to prove how the exclusion of the goodwill amortization affects the informative of the earnings of certain companies. Although the data set is a limited one (having a hundred observations only), yet it does seek to prove the hypothesis. The results of the income before the extraordinary items are compared to the income after the exclusion of the goodwill amortization and the net cash flow from observations to find the relative content ranking of all three. The paper also provides explanations for the results that may not seem to be accurate and tends to question if the substitution of the income after the exclusion of goodwill amortization for the income before extraordinary items undertaken by the FASB was a proper step,

In 2001, according to a report by the Working Council for Chief Financial Officers (2002), the FASB adopted the Statement of Financial Accounting Standards (SFAS) No.142 Goodwill and Other Intangible Assets which meant that a new set of rules were introduced to deal with the accounting information related to the goodwill amortization. The statement proposed that the goodwill and the intangible assets had an infinite life and so there was no need for the amortization of such assets, as Choi&nbsp.and Federick (2003) relate.