CM Corp Goodwill & Bargain Purchase SWOT Analysis

Evaluate the reasons business combinations occur and the accounting implications of such transactions.ScenarioCM Corporation (CMC) was founded six years ago by Phil Connor and Eric Martin. The company designs, installs, and services security systems for high-tech companies. The founders, who describe themselves as “entrepreneurial geeks,” met in a computer lab when they were teenagers and found they had common interests in working on security systems for critical industries. CMC hired you as a junior accountant this year.Lately, Connor and Martin have been working with “radio frequency identification” (RFID) technology. They have developed a detailed system designed to track inventory items using RFID tags embedded invisibly in products. This technology has numerous inventory applications in multiple industries.One of the most basic applications is tracking manufacturing components; if tagged components “go walking” (if employees attempt to take them), companies can easily track and find them. Connor and Martin have sold their system to several high-tech companies in the area. These companies have a number of government contracts that require extensive security systems to protect sensitive data from infiltration by terrorists and others. To date, CMC’s cash flow from sales and services has adequately funded its operations.CMC expects much growth potential for its products. As a result, they are considering going public and expanding internationally in the near future.InstructionsConnor and Martin are contemplating acquiring Adverse Systems, a smaller security system manufacturer who is in the market to sell due to financial hardships. It is important for CMC to analyze the internal and external factors that could possibly affect the company’s future performance after acquiring another company. SWOT is a comprehensive audit and competitive analysis that analyzes the Strengths, Weaknesses, Opportunities and Threats facing an organization. CMC has asked you to be a part of the company’s acquisition planning process to identify strategies, financial and operational goals. They have requested that you outline the internal and external factors that are relative to the acquisition and report the results using a SWOT analysis. CMC and Martin have the option of recognizing goodwill or making a bargain purchase.Prepare a PowerPoint presentation of a SWOT analysis comparing goodwill and bargain purchase.Presentation Mechanics should be as follows:Prepare a 5-8 slide PowerPoint presentation, including slide notes.Summarize the strengths, weaknesses, opportunities, and threats for CMC under each purchase option.Explain the advantages and disadvantages of each option under both US GAAP and IFRS standards.Explain how either the goodwill recognition or bargain purchase can impact an acquisition.Use the FASB Codification and IFRS to address all technical accounting issues presented in the requirements, being certain to reference the applicable sections of the Codification and IFRS in your presentation. You will need to register for the basic service at these sites. It is free.All sources used to support your responses should be properly documented. You should have other credible sources in addition to the Codification and IFRS.

Related Posts

Quality Writing Features

Price Start $10
  • 24/7 Customer Support
  • All Subject Areas
  • Money-Back Guarantee
  • Timely Delivery
  • Originality report
  • Confidentiality guaranteed

Ordering Homework Writing Service

You can get our ideal online homework help services with four easy steps. All you have to do is inform us of your requirements. Immediately we will match with a specialist in your academic discipline. After that, we will track your order, review it to ensure it meets your requirements, and submit it to your email.


Submit Requirements

Fill in your assignment instructions on the order form


Writer match

Immediately you contact us for homework help; we will assign your assignment to an academic expert.


Quality review

We have a team of editors, who will thoroughly review your assignment, ensuring there are no errors before submission


Get Your Completed Paper

Once we have completed the assignment, we will deliver it to your account. Additionally, we will send a notification to your email.



Budget-friendly writing services



We don’t share our client’s information with a third party



We write every assignment from scratch

Amazing Homework Writing Features

Once you consult us for homework help online services, you will attest to why we are among the USA's best essay writing services.

Read on and find out some of the features that make our services superlative.

Free Homework Writing Services

Free plagiarism checker

You can confirm that the content you get is original for free using our plagiarism checker.

Free samples

We offer unlimited access to our essay homework samples.

Free title page and bibliography

Once you place an order, we format it accordingly without demanding additional charges.

Free unlimited revisions

We offer free unlimited revisions until your assignment is of your desired quality..

Free editing and proofreading

We have a team of specialized editors who review your assignment before submission.

Free customer support

You can track the progress of your homework for free.

Request for Homework Writing Service Today!

We have over 500 homework writing experts, ready and waiting to help you improve your writing skills