CASE STUDY IN WRITING OFF INTANGIBLES.
This article attempts, by use of the published data, to summarize and analyze the United States Steel Corp.'s reporting of goodwill and associated elements during these eventful years. In addition to pointing out an interesting chapter in American corporate reporting, the summary perhaps directs attention to the importance of sound valuations for contributed resources and the desirability of systematic accounting for goodwill. The United States Steel Corp., as is well known, was organized by a syndicate headed by J. Pierpont Morgan. In consolidating a number of existing companies, the syndicate issued none of the bonds or shares of the new corporation for cash alone. Although the preferred and common shares were issued in amounts which resulted in a large quantity of stock discount, the legal status of the shares was materially improved by withholding from the financial statements any evidence of this discount. Apparently for this reason the beginning balance of the "Property Account" was determined residually after the assignment of par value to the securities issued and appropriate values to assets other than those included in the property account.
- DOI
- 10.2308/tar-7061118
- Volume
- 31 (4)
- Pages
- 599-607
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref