422 Planning and Forecasting
- A further negative for a U.S. firm has been the fact that goodwill amortiza-
tion was not deductible for tax purposes, whereas it was in some other countries. A
1993 change in the tax law, Internal Revenue Code, section 197, now makes it possi-
ble to amortize goodwill in the tax return for qualifying acquisitions. - FASB, News Release, Financial Accounting Standards Board Announces Ad-
ditional Decisions Relating to the Treatment of Goodwill(Nor walk, CT: FASB, De-
cember 20, 2000). - SFAS No. 106, Employers’ Accounting for Postretirement Benefits Other
Than Pensions(Nor walk, CT: FASB, December 1990). - From a statement made by R. S. Miller Jr., executive vice president and chief
financial officer of Chrysler Corporation, to the Financial Accounting Standards
Board, Washington, DC, November 3, 1989, 3. - Removing the effects of exchange rate changes in cases where the subsidiary
is using the temporal (remeasurement) translation method, as opposed to the all-cur-
rent method, is a greater challenge and beyond the scope of this chapter. - Black and Decker Inc., annual report, December 1995, 35.
- The following two references were of great assistance in preparing this dis-
cussion of transfer pricing: Frederick D. S. Choi and Gerhard G. Mueller, An Intro-
duction to Multinational Accounting (Englewood Cliffs, NJ: Prentice-Hall, 1978),
chapter 9; and Jeffrey S. Arpan and Lee H. Radebaugh, International Accounting and
Multinational Enterprises (New York: Warren, Gorham & Lamont, 1981), chapter 10. - SFAS No. 33, Financial Repor ting and Changing Prices (amended and par-
tially superseded) (Stamford, CT: FASB, September 1979). - SFAS No. 89, Financial Repor ting and Changing Prices(Stamford, CT:
FASB, December 1986). - Helpful in preparing this section was J. Largay and L. Livingstone, Account-
ing for Changing Prices: Replacement Cost and General Price Level Adjustments
(Santa Barbara, CA: John Wiley/Hamilton, 1976). This is an excellent and compre-
hensive treatment of this subject area that is recommended for readers interested in
a more expansive treatment of the subject. - Tiger International Inc., annual report, December 1980, 39.
- Ibid., 39.
- Ibid., 40.
- Incorporating gain and losses on the net monetary position into the computa-
tion of restated results was not part of the SFAS No. 33 requirements. - SFAS No. 89, Financial Repor ting and Changing Prices(Stamford, CT:
FASB, 1986). - For further background on this topic see: K. Skousen, An Introduction to the
SEC,4th ed. (Cincinnati: South-Western, 1987), 32–35. - Repor t of the National Commission on Fraudulent Financial Repor ting
(Washington, DC, 1987), 44.